Cabinet slashes proposed NamRA salaries
The Executive has blocked the original proposed salary structure of the tax-collection agency and ordered that they be in strict compliance with the Public Enterprises Governance Act.
Mathias Haufiku/Ogone Tlhage
WINDHOEK
Cabinet last year rebuffed a proposal that was advanced by the finance ministry to effect the controversial salary structure of the Namibia Revenue Agency (NamRA), Namibian Sun can reveal.
Cabinet frowned upon the figures and reached consensus that the amounts were “not justifiable”, a source told this publication.
Covert negotiations and structuring of NamRA started off with Visions Consultancy, owned by Rudi Koekemoer, landing the contract to do the groundwork in 2019, which included developing a staff structure and remuneration scales.
“He [Koekemoer] did the bloated structure together with officials from the finance ministry and Bank of Namibia [BoN]. They actually wanted NamRA’s remuneration packages to exceed the Public Enterprises Governance Act (Pega) regulations, plus 15% more,” an impeccable source told Namibian Sun.
“That was rejected by Cabinet. The decision by Cabinet was to peg them strictly at Pega Tier 3, which is what the public enterprises ministry approved and implemented.”
The Koekemoer report contained the proposed salaries in all NamRa paygrades, with the commissioner pegged at N$225 000 a month – or N$2.7 million a year.
The structure made provision for 13 executives who would each earn up to N$170 000 a month – or N$2.05 million a year - according to the report.
Cabinet has approved a revised proposal, according to which the NamRA head can earn N$2.08 million per annum – which is about N$700 000 less than the initially proposed salary.
NamRA was launched earlier this year and received its maiden budget allocation of N$79 million, which is earmarked to ensure the operationalisation of the tax collection agency.
Blocked
Official documents, which Namibian Sun has seen, indicate that Cabinet directed the public enterprises ministry to review the remuneration classification of NamRA as a Tier 3 state-owned enterprise.
“Cabinet directed that all remuneration for all staff members of NamRA should be within the approved remuneration tier,” a document dated 25 August 2020 read.
The public enterprises and finance ministries were also ordered to facilitate the development of a business plan for the tax agency as well as revenue projections and performance targets.
Public enterprises minister Leon Jooste yesterday told this publication that NamRA is yet to submit its business plans. He did not indicate whether there is a deadline for this submission.
He added: “There has been no request for exemption and they [NamRA] are therefore obliged to remain within the guidelines”.
The commissioner and the executive team are employed on five-year performance-based contracts, while the rest of the staffers are employed full-time.
Disgruntled workers
While Cabinet sanctioned the external recruitment of senior, middle management and special units, those who worked under the Inland Revenue directorate recently questioned the recruitment strategy of the agency, with claims of nepotism and exclusion.
About 1 200 staff members from the Inland Revenue and the Customs and Excise directorates will be transferred to NamRA.
Disgruntled workers who contacted Namibian Sun last month claimed they were assured that they would receive first preference when NamRA starts operating, but are now expected to compete for jobs with outsiders.
Some have allegedly also been told that they will be transferred to other ministries if they do not make the cut.
In a grievance seen by Namibian Sun, employees alleged that - among other things – salary notches were not shared with the various unions representing workers; jobs at the agency are promised to outsiders who were not part of the finance ministry despite the issue of secondment, and there is a difference in the NamRA structure for seconded employees and permanent employees.
“Employees of Customs and Inland were refused a salary increment because everybody was to be transferred to NamRA, but now the people who have joined the Customs team recently are the ones dictating,” the grievance read.
“There is no communication with the current workers; things are just imposed us regardless of how it affects us. The union is also being kept in the dark about the salary structure because the agency refuses to make it available,” the employees lamented.
Unequal
The Namibian yesterday reported that critics are unhappy with the way in which the agency is recruiting, and with its alleged unequal salary structure.
NamRA boss Sam Shivute in a statement released over the weekend said “we are alive to the fact that the agency’s establishment might not be welcomed by everyone, especially by those who might want the current status quo to continue, where some continue to evade their tax obligation”.
WINDHOEK
Cabinet last year rebuffed a proposal that was advanced by the finance ministry to effect the controversial salary structure of the Namibia Revenue Agency (NamRA), Namibian Sun can reveal.
Cabinet frowned upon the figures and reached consensus that the amounts were “not justifiable”, a source told this publication.
Covert negotiations and structuring of NamRA started off with Visions Consultancy, owned by Rudi Koekemoer, landing the contract to do the groundwork in 2019, which included developing a staff structure and remuneration scales.
“He [Koekemoer] did the bloated structure together with officials from the finance ministry and Bank of Namibia [BoN]. They actually wanted NamRA’s remuneration packages to exceed the Public Enterprises Governance Act (Pega) regulations, plus 15% more,” an impeccable source told Namibian Sun.
“That was rejected by Cabinet. The decision by Cabinet was to peg them strictly at Pega Tier 3, which is what the public enterprises ministry approved and implemented.”
The Koekemoer report contained the proposed salaries in all NamRa paygrades, with the commissioner pegged at N$225 000 a month – or N$2.7 million a year.
The structure made provision for 13 executives who would each earn up to N$170 000 a month – or N$2.05 million a year - according to the report.
Cabinet has approved a revised proposal, according to which the NamRA head can earn N$2.08 million per annum – which is about N$700 000 less than the initially proposed salary.
NamRA was launched earlier this year and received its maiden budget allocation of N$79 million, which is earmarked to ensure the operationalisation of the tax collection agency.
Blocked
Official documents, which Namibian Sun has seen, indicate that Cabinet directed the public enterprises ministry to review the remuneration classification of NamRA as a Tier 3 state-owned enterprise.
“Cabinet directed that all remuneration for all staff members of NamRA should be within the approved remuneration tier,” a document dated 25 August 2020 read.
The public enterprises and finance ministries were also ordered to facilitate the development of a business plan for the tax agency as well as revenue projections and performance targets.
Public enterprises minister Leon Jooste yesterday told this publication that NamRA is yet to submit its business plans. He did not indicate whether there is a deadline for this submission.
He added: “There has been no request for exemption and they [NamRA] are therefore obliged to remain within the guidelines”.
The commissioner and the executive team are employed on five-year performance-based contracts, while the rest of the staffers are employed full-time.
Disgruntled workers
While Cabinet sanctioned the external recruitment of senior, middle management and special units, those who worked under the Inland Revenue directorate recently questioned the recruitment strategy of the agency, with claims of nepotism and exclusion.
About 1 200 staff members from the Inland Revenue and the Customs and Excise directorates will be transferred to NamRA.
Disgruntled workers who contacted Namibian Sun last month claimed they were assured that they would receive first preference when NamRA starts operating, but are now expected to compete for jobs with outsiders.
Some have allegedly also been told that they will be transferred to other ministries if they do not make the cut.
In a grievance seen by Namibian Sun, employees alleged that - among other things – salary notches were not shared with the various unions representing workers; jobs at the agency are promised to outsiders who were not part of the finance ministry despite the issue of secondment, and there is a difference in the NamRA structure for seconded employees and permanent employees.
“Employees of Customs and Inland were refused a salary increment because everybody was to be transferred to NamRA, but now the people who have joined the Customs team recently are the ones dictating,” the grievance read.
“There is no communication with the current workers; things are just imposed us regardless of how it affects us. The union is also being kept in the dark about the salary structure because the agency refuses to make it available,” the employees lamented.
Unequal
The Namibian yesterday reported that critics are unhappy with the way in which the agency is recruiting, and with its alleged unequal salary structure.
NamRA boss Sam Shivute in a statement released over the weekend said “we are alive to the fact that the agency’s establishment might not be welcomed by everyone, especially by those who might want the current status quo to continue, where some continue to evade their tax obligation”.
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