Rundu CEO contract stand-off ends

Rundu mayor Andreas Jikerwa has confirmed that the long-running dispute over the contract extension of chief executive officer Olavi Nathanael has been resolved, with Nathanael officially resuming duties on 5 May.

The issue, which has dragged on since last year, stems from a directive by urban and rural development minister James Sankwasa ordering the then council not to renew Nathanael’s contract, citing poor performance.

At the time, Nathanael was serving a five-year contract that began on 3 May 2021 and was due to end on 2 May 2026.

Despite the minister’s directive, the council proceeded with renewing the contract last year, a move that triggered a governance and legal dispute between the local authority and the ministry.

The council later sought a legal opinion, which reportedly concluded that the renewal resolution was lawful under the Local Authorities Act and contractually valid, arguing that the minister’s objection was advisory and not binding.

The matter resurfaced again last month.

In email correspondence directed to Jikerwa, seen by this publication, the minister stated that while he had advised against the extension, the contract had already been renewed under the previous council, making it binding.

“I have advised the council not to extend the contract but it appears it was renewed, you may withdraw the resolution to terminate the employment contract for now,” Sankwasa wrote.

He further indicated that the next course of action should be the introduction of a performance agreement to assess the CEO’s output going forward.

Performance reviews

Against this backdrop, Jikerwa confirmed that the matter has now been resolved and that Nathanael has returned to office. “The CEO resumed duties on the 5th", he said.

The mayor also addressed the issue of performance-based reviews, noting that such arrangements are standard practice in public administration.

“For you to be able to get a contract, it has to be based on performance, so this is a common thing, and of course we will monitor this performance to ensure work is done,” he said.

Jikerwa said the council can now refocus on service delivery and development priorities, adding that the stabilisation of leadership will allow the municipality to roll out key infrastructure programmes across the town more effectively.

However, council insiders have suggested that the minister’s apparent shift in position may be linked to alleged legal pressure, including threats to enforce the previous council’s binding renewal decision through legal channels – a claim that could not be independently verified.

Sankwasa and Nathanael had not responded to requests for comment by the time of going to print.

While the dispute over the contract extension appears to have been resolved administratively, it highlighted tensions between the council and the ministry over executive authority, performance oversight and the legal interpretation of local government decisions.