Namcor will explain

The mines and energy minister says the Namcor board of directors could be held liable for N$1.2 million paid out to employees that they had fired against legal advice.

17 September 2018 | Energy

JEMIMA BEUKES



The National Petroleum Corporation of Namibia (Namcor) board chairperson, Patrick Kauta, says he will write to mines and energy minister Tom Alweendo and explain why his board decided to fire workers and pay them severance packages despite a legal opinion warning against this action.

Alweendo last week demanded an explanation from the Namcor board no later than 12 September as to why they had ignored a legal opinion sought by the Namcor managing director.

He also requested them to explain why they should not be held liable for the financial loss incurred by Namcor as a result of the severance payouts totalling N$1.2 million.

“At our meeting of 11 September 2018 you confirmed that you were aware of the legal opinion obtained by the managing director in the light of the above. It is thus my position that the N$1.2 million awarded by Namcor constitutes wasteful expenditure that could have been avoided,” said Alweendo.

Alweendo based his request on a report by The Namibian on 10 September which stated that Namcor had lost a labour dispute initiated by the dismissed employees and was ordered by the Labour Commissioner to pay them N$1.2 million.

According to the newspaper report, prior to the labour case the board had been provided with a legal opinion which stated that the workers had been unfairly dismissed.

However, the board chose to ignore this legal opinion and proceeded with the dismissal of the employees, the report said.

Namcor board chairman Patrick Kauta said they had received the minister’s letter and would reply to it.

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