Govt pours cold water on Nida job loss fears

Government has assured employees at the Namibia Industrial Development Agency (Nida) that they will not be displaced by the proposed transfer of 56 properties to the Public Asset Management Agency (Pama).

This comes days after Namibian Sun reported that the properties, valued at N$277.4 million, had been earmarked for transfer to Pama, sparking uncertainty among employees responsible for managing the agency’s property portfolio.

The Ministry of Works and Transport has now confirmed that the 56 properties were identified for consideration under government’s plans to centralise the management of non-public-service-delivery assets.

“The ministry confirms that 56 properties from Nida’s portfolio, out of a broader portfolio of 104 properties, have been initially identified for consideration within the context of the proposed rationalisation and centralised management of non-public-service-delivery assets,” the ministry said.

Namibian Sun last week reported that internal WhatsApp discussions show Nida employees questioning what the establishment of Pama and the proposed transfer could mean for their positions.

“What is the fate of us, property officers?” an employee asked after an internal asset assessment identifying the properties was circulated.

Another questioned why employees had not been formally informed about the process.

“Is there a reason why such info was not communicated though, instead of us receiving it from other sources for you to clarify?” the employee asked.

The ministry said Pama’s staffing model remains undecided but could involve new recruitment and secondments from government institutions.

“The establishment of Pama is not intended to result in the arbitrary displacement of employees currently involved in property management.

“The ministry is carefully considering the most appropriate human-resource model for the agency, which may include a combination of new recruitment, secondment from the ministry and/or other entities, and the rationalisation of existing capacity,” the ministry said.

Transfer not final

The internal Nida asset assessment, dated 31 March, identifies 56 properties worth N$277.4 million for transfer, while 48 properties valued at N$850.6 million are earmarked to remain with the agency.

The properties identified for possible transfer contain 536 units, of which 343 are occupied, and generate a combined monthly rental income of N$954 398.

The works ministry stressed that identifying the properties was an exploratory step and did not amount to a completed transfer.

“It is critical to emphasise that this identification or earmarking is an exploratory step and does not constitute a completed transfer,” it said.

Before any transfer can take place, government said it will verify ownership, existing leases and encumbrances, conduct updated valuations, ensure legal compliance and obtain approvals.

“A final decision will only be made once all legal, financial and administrative requirements have been satisfactorily met,” the ministry said.

Legal framework unfinished

The ministry acknowledged the Nida Act expressly empowers the agency to own, manage, develop, lease and deal with immovable property.

The ministry said it will conduct a legal review to determine whether amendments to the Nida Act are required before the properties can be transferred.

The legal and institutional structure of Pama has also not been finalised, according to the ministry.

“The government is considering establishing it through a dedicated Act of Parliament, incorporating it as a state-owned company under the Companies Act, or using a combination of the two approaches,” the ministry explained.

Pama’s board, executive management structure, appointment mechanisms and reporting lines are still under development.

The ministry also declined to provide a completion date for establishing Pama or transferring the properties.

“Given the complexity of these steps, it would be premature to provide a definitive completion date before these processes have been concluded,” the ministry said.

Nida acting chief executive officer Phillip Namundjebo told Namibian Sun that so far "no decisions have been made that would adversely affect employees as a result of ongoing discussions".

He added: “Should any organisational changes become necessary in the future, they will be handled in accordance with applicable labour legislation, policies and stakeholder consultation processes."

Namundjebo also assured tenants that contracts would continue to be honoured.

“Existing contractual obligations, including tenant arrangements and lease agreements, will continue to be honoured,” he said.