Nored loses case against ex-CEO Nakashole's dismissal

Former Northern Electricity Distributor (Nored) chief executive officer Fillemon Nakashole has successfully appealed against his dismissal over a N$1.1 million performance bonus paid to the company's chief financial officer in 2021, with an internal appeal ruling that he should have received a final written warning instead.Although the appeal upheld findings of gross negligence, it overturned findings of dishonesty and other charges, concluding that dismissal was too severe.Nored must now reverse Nakashole's dismissal, restore his employment record up to 15 December 2025, when his five-year contract expired, and calculate any salary and contractual benefits owed to him following the decision.Speaking to Network Media Hub yesterday, Nakashole said the ruling had vindicated him after his dismissal damaged a career spanning several decades.“I feel really vindicated. I have been in the industry for many years and have been a CEO for more than 25 years at different companies, including Nored. I have built up my career,” he said.“To have my career tarnished like that was uncalled for. That is why I am very happy with the ruling. I think justice has prevailed,” Nakashole said.He said Nored had never publicly explained the reasons for his dismissal, leaving people to speculate about what had happened.“I think the nation needed to know the truth, as you know. Nored never explained on record the reasons, and people were left to make their own assumptions about why I was fired,” he said.Bonus paid before approvalThe dispute dates to October 2021, when Nakashole approved a gross performance bonus of N$1 058 724 for chief financial officer Ndapandula Josephine Tshitayi following an assessment covering April 2020 to June 2021, during which she received a performance score of 98.1%.However, the payment was made before Nored's board had approved the company's audited annual financial statements, as required by the performance agreement.At the time, management accounts showed a profit before tax of N$49.05 million, but the audited financial statements approved in March 2023 reflected a loss before tax of N$6.35 million.The appeal found that Nakashole knew the audited statements were outstanding and that the financial figures could change, although there was no evidence that he knew the company would eventually report a loss.Nored was also experiencing financial difficulties, including declining cash balances, revenue collection problems and an inability to pay even half of its NamPower account by the due date.Before the bonus was paid, executive manager for human resources Mirjam Kondjeni questioned the performance assessment and requested supporting financial information.She recommended referring the matter to the remuneration committee, audit committee and board, and withholding payment pending the necessary approval. She also proposed that Tshitayi should not spend the money until approval had been obtained.Nakashole disagreed, and the payment proceeded.On 3 November 2021, Nored's board ordered Tshitayi to repay the net amount of N$666 996.12. Nakashole issued a repayment demand the following day, but Tshitayi disputed it, maintaining that the bonus had been properly approved under her employment contract.According to the disciplinary record, the money remained unrecovered.Dishonesty findings overturnedFollowing an investigation by PricewaterhouseCoopers (PwC), Nakashole faced 11 disciplinary charges, including gross negligence, dishonesty, breach of trust and violations of company policies.In November 2025, disciplinary chairperson Cor Beuke found him guilty on all charges and recommended dismissal.Nakashole appealed, arguing that he had acted within what he understood to be his authority and that Nored had previously approved executive performance bonuses under similar arrangements.He also challenged the company's reliance on the PwC investigation, particularly because the investigator who prepared the report had not testified at the disciplinary hearing.The appeal found that disputed conclusions in the report could not be treated as proof of wrongdoing without supporting evidence, especially after the investigator was not called to answer questions.It further found no evidence that Nakashole had personally benefited from Tshitayi's bonus, falsified documents or participated in a dishonest scheme.The appeal also considered shortcomings in Nored's implementation of its performance management arrangements and the company's previous handling of executive bonuses.While retaining findings of gross negligence and certain procedural breaches, the appeal chairperson concluded that dismissal was disproportionate after the dishonesty findings and other unsupported allegations were overturned.Nakashole's approximately ten years of service, clean disciplinary record and absence of personal financial gain weighed in favour of a lesser sanction.The appeal consequently replaced his dismissal with a final written warning, requiring Nored to correct his employment record and determine any outstanding contractual payments.The ruling does not reinstate Nakashole beyond 15 December 2025, when his fixed-term contract expired.

Nored loses case against ex-CEO Nakashole's dismissal

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Namibian Sun 2026-10-14

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Nored loses case against ex-CEO Nakashole's dismissal

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Namibian Sun 2026-10-14

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