Meatco seeks N$85m, plans pay cuts amid spending questions

Sonja Smith and Nikanor NangoloMeatco is reportedly seeking N$85 million from the government while proposing to cut employees' salaries by one-third for three months, amid questions about alleged spending on executive benefits and management meetings.The meat processor is also considering a voluntary separation programme for older employees and those whose positions have become redundant, as the foot-and-mouth disease (FMD) outbreak disrupts its operations and markets.The proposed salary reductions and voluntary separation programme are contained in a letter dated 12 October 2026, seen by Namibian Sun, in which interim chief executive officer Albertus Aochamub seeks urgent discussions with the Namibian Food and Allied Workers Union (NAFAU).The proposals come as allegations have emerged that Meatco is spending money on executive accommodation and other benefits, while questions have also been raised about a strategic management meeting held at a private lodging facility despite the corporation having its own conference facilities.Executive spending questionedAmong the allegations are claims that Meatco pays N$20 000 a month towards Aochamub's accommodation and provides him with meat products worth N$2 000 monthly.The alleged payments have not been independently verified, and Aochamub neither confirmed nor denied the amounts when approached for comment. Instead, he dismissed the questions as trivial compared with the corporation's financial difficulties.“This is trivia. We are engaged in dealing with matters of survival for Meatco, and that is where my attention is at present. The ever-present detractors of this organisation, who spend all their waking hours wishing the company dead, can thrive in cloud cuckoo land. We have important work to do and will not be detracted by trivia,” said Aochamub.Questions were also put to him about allegations that Meatco had purchased a new Toyota bakkie for his use despite his appointment being on an acting basis. A brand new Toyota costs slightly over N$1.1 million at local dealership. Aochamub did not confirm that a new vehicle had been purchased, but explained that the vehicle assigned to him was part of Meatco's fleet and would remain with the corporation when his tenure ended.“All vehicles at Meatco are part of the company fleet. I have a vehicle assigned for official use, which is part of my conditions of employment. When my term ends by February 2027, that same vehicle will remain at Meatco,” he said.Meatco executives also held a strategic meeting at a private lodging facility on Saturday, where participants were allegedly required to sign non-disclosure agreements.Questions have been raised about the decision to use an external venue when Meatco has its own conference facilities. However, the cost of the meeting and whether the corporation incurred additional expenditure have not been established.Aochamub defended the confidentiality arrangements but did not address the choice or cost of the venue.“From a governance perspective, all Meatco board and board committee meetings carry a declaration of interests and observance of full confidentiality. Maybe your informant is not aware that this was not a new practice,” he said.N$85m funding requestThe spending questions come as Meatco reportedly seeks financial assistance from its government shareholder following disruptions caused by the FMD outbreak.According to people familiar with the request, the corporation approached the government in September for N$85 million to meet its financial obligations.Aochamub declined to confirm the amount or disclose details of the discussions.“All confidential matters discussed with the shareholder will unfortunately not be for public consumption. As you are aware, others in our sector are closing shop, and we are hard at work to ensure that our people are not on the streets as a result of the present calamity,” he said.Meatco recently paid N$31 million in full for livestock delivered to its Windhoek abattoir between 29 August and 11 September 2026.Meatco has formally proposed paying employees two-thirds of their current salaries during November and December 2026 and January 2027 as part of measures intended to reduce expenditure.“Management wishes to propose for discussion a temporary two-thirds salary arrangement for all employees for November, December 2026 and January 2027,” Aochamub wrote in his letter to NAFAU, seen by this publication.Meatco employs approximately 750 people, including about 400 production workers involved in slaughtering and deboning. The proposed reduction would apply to all employees if adopted, although management has not disclosed how much it expects to save.The arrangement remains a proposal for discussion with the union and has not been implemented.Aochamub acknowledged the potential impact on workers and their families, saying discussions would also have to address benefits, statutory deductions and other payroll matters.“We fully appreciate the significance of such a proposal for employees and their families,” he wrote.The proposed arrangement would be reviewed after January 2027, depending on the corporation's operational and financial position.“The position beyond January 2027 would be reviewed against prevailing operational and financial circumstances,” the letter states.Explaining the need for emergency measures, Aochamub said the outbreak had placed significant pressure on Meatco's finances.“Meatco continues to navigate an exceptionally difficult operating environment arising from the disruption to its normal business and market activities due to the FMD Emergency.“These circumstances are placing significant pressure on the Corporation’s financial position and require us to consider measures that can reduce costs while, as far as reasonably possible, protecting employment and preserving the capabilities needed for recovery,” he wrote.Voluntary separationMeatco also wants to introduce a voluntary separation programme for employees aged 55 and above and those whose positions have become redundant under its revised corporate structure.According to Aochamub, the proposal emerged from discussions initiated by employees themselves.“Management also wishes to take forward the proposal that has emerged from employees themselves regarding the possible introduction of a Voluntary Separation Programme,” he wrote.The programme would cover severance payments, accrued leave, contractual entitlements, pension-related matters, notice periods and eligibility requirements.Although participation would be voluntary, management would retain the authority to approve applications to protect essential skills and maintain operations.“The programme would remain entirely voluntary from the employee’s perspective.“At the same time, Management would need to retain final discretion in approving applications to protect critical skills, business continuity, operational requirements and affordability,” the letter reads.The number of employees who might qualify for the programme has not been disclosed.Other cost-cutting measuresMeatco intends to maintain its existing overtime freeze, with exceptions requiring approval from the chief executive for essential operational, safety, security or maintenance work.Recruitment has been frozen except for positions considered critical to continued operations, while employees with accumulated leave beyond company policy limits would be required to take leave unless an operational exception is approved.Management also plans to prioritise redeployment and internal skills matching before recruiting externally.The corporation maintains that the measures are intended to reduce expenditure while preserving employment and retaining the skills needed for recovery.“We believe that Management and NAFAU have a common interest in ensuring that Meatco remains operationally viable and capable of recovering when market conditions improve,” the letter states.“Our intention is therefore not simply to contain costs but to work together to find measures that are fair, practical and sustainable while limiting the impact on employees as far as circumstances allow.”Aochamub confirmed the proposed meeting with NAFAU when contacted on Monday.Search for alternative marketsMeatco is also exploring alternative markets as the FMD outbreak disrupts its normal trading activities.There have been suggestions that the corporation is involved in discussions with the government about approaching South Africa to reopen its borders to Namibian beef, but Aochamub denied participating in such talks."No, we are not participating in any discussion with the government. Those are bilateral matters, as you are aware. We are exploring all avenues available to us in the alternative markets on the continent of Africa and elsewhere.”Questions have also been raised about why Meatco relies on local companies that purchase and resell its products instead of selling directly to consumers.“Our products are available through all the channels as was the case before and during this crisis. Our factory shop remains open to the public for as long as we have products available,” Aochamub said.Asked about the corporation's marketing strategies, he declined to disclose operational details."We will not discuss any internal strategies and share intelligence in public in the same manner that our competitors don’t. When there are new ideas to improve the business, the employees know that they are at liberty to share internally.”

Meatco seeks N$85m, plans pay cuts amid spending questions

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Namibian Sun 2026-10-14

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Meatco seeks N$85m, plans pay cuts amid spending questions

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Namibian Sun 2026-10-14

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