Shiimi rejects TransNamib chairperson’s resignation
STAFF REPORTERWINDHOEK
Acting minister of public enterprises Iipumbu Shiimi has refused to accept the resignation of TransNamib board chairperson Lionel Matthews.Matthews and deputy chairperson Sigrid Tjijorokisa tendered their resignations from the board on Wednesday.
Namibian Sun understands other board members have also urged Matthews, a veteran business leader, to rescind his decision. Matthews and Tjijorokisa both hinted at irreconcilable differences in their resignation letters, with the former saying there were unjustified efforts to get rid of the company’s executives.
Tjijorokisa, on the other hand, accused Matthews of covering up irregularities, saying the chairperson has refused to divulge contents of an Ernst & Young investigation at the company.
Matthews responded that the report is inconclusive and cannot be used by the board to take any decisions. An irate Matthews told Shiimi he cannot preside over “a continued demand to remove the current CEO and some executives” without basis.
Constant clashing
Tjijorokisa was previously the board chairperson but was demoted to vice-chairperson and replaced by Matthews. The pair has consistently clashed since then.
“It’s only Sigi [Tjijorokisa] who clashed with the chairperson. The other board members are actually asking Matthews to stay and that’s why Shiimi is not accepting the resignation,” a source close to the matter said yesterday.
In her resignation letter, Tjijorokisa said: “I feel the current circumstances and developments are illustrative of a total lack of governance within the organisation, with the department of public enterprises and at board level”.
“During my tenure, I have tried to correct foundational issues which eventually led to the rescue of Swakopmund Hotel and Entertainment Centre and the appointment of Ernst & Young to investigate certain irregularities within the organisation.”
Deprived board
“The new chairperson [Matthews] elected not to share this report with the board. This was condoned by the board in a meeting with the department of public enterprises, against my objection.”
“It is my firm view that a board that governs while being aware of material irregularities by senior executives is not a board.
“Likewise, a department that is aware of material irregularities but is of the view that the investigation report belongs to it and that it has no obligation to share this with the board is certainly one that then has effectively deprived the board of its ability to exercise proper oversight and of its ability to carry out its fiduciary duties,” Tjijorokisa wrote.
Washing his hands
In his own resignation letter, Matthews told Shiimi that the report was “not finalised”.
He said: “There is a continued demand to remove the current CEO [Johny Smith] and some executives by the union based on a report that still is not finalised”.
Washing his hands of the mess at the parastatal, Matthews said: “I was appointed on 8 February 2022, and where TransNamib is is not my doing; it is the mismanagement that happened by those who came before me.”
“I will not allow my reputation and my character to be drawn into question by the union in public.”
Other board members are deputy chairperson Gaenor Michaels, Josephine Shikongo, Vincent Mberema, Erastus Ikela and Dr Michael Ochurub.
Shiimi could not be reached for comment yesterday.
Acting minister of public enterprises Iipumbu Shiimi has refused to accept the resignation of TransNamib board chairperson Lionel Matthews.Matthews and deputy chairperson Sigrid Tjijorokisa tendered their resignations from the board on Wednesday.
Namibian Sun understands other board members have also urged Matthews, a veteran business leader, to rescind his decision. Matthews and Tjijorokisa both hinted at irreconcilable differences in their resignation letters, with the former saying there were unjustified efforts to get rid of the company’s executives.
Tjijorokisa, on the other hand, accused Matthews of covering up irregularities, saying the chairperson has refused to divulge contents of an Ernst & Young investigation at the company.
Matthews responded that the report is inconclusive and cannot be used by the board to take any decisions. An irate Matthews told Shiimi he cannot preside over “a continued demand to remove the current CEO and some executives” without basis.
Constant clashing
Tjijorokisa was previously the board chairperson but was demoted to vice-chairperson and replaced by Matthews. The pair has consistently clashed since then.
“It’s only Sigi [Tjijorokisa] who clashed with the chairperson. The other board members are actually asking Matthews to stay and that’s why Shiimi is not accepting the resignation,” a source close to the matter said yesterday.
In her resignation letter, Tjijorokisa said: “I feel the current circumstances and developments are illustrative of a total lack of governance within the organisation, with the department of public enterprises and at board level”.
“During my tenure, I have tried to correct foundational issues which eventually led to the rescue of Swakopmund Hotel and Entertainment Centre and the appointment of Ernst & Young to investigate certain irregularities within the organisation.”
Deprived board
“The new chairperson [Matthews] elected not to share this report with the board. This was condoned by the board in a meeting with the department of public enterprises, against my objection.”
“It is my firm view that a board that governs while being aware of material irregularities by senior executives is not a board.
“Likewise, a department that is aware of material irregularities but is of the view that the investigation report belongs to it and that it has no obligation to share this with the board is certainly one that then has effectively deprived the board of its ability to exercise proper oversight and of its ability to carry out its fiduciary duties,” Tjijorokisa wrote.
Washing his hands
In his own resignation letter, Matthews told Shiimi that the report was “not finalised”.
He said: “There is a continued demand to remove the current CEO [Johny Smith] and some executives by the union based on a report that still is not finalised”.
Washing his hands of the mess at the parastatal, Matthews said: “I was appointed on 8 February 2022, and where TransNamib is is not my doing; it is the mismanagement that happened by those who came before me.”
“I will not allow my reputation and my character to be drawn into question by the union in public.”
Other board members are deputy chairperson Gaenor Michaels, Josephine Shikongo, Vincent Mberema, Erastus Ikela and Dr Michael Ochurub.
Shiimi could not be reached for comment yesterday.
Comments
Namibian Sun
No comments have been left on this article