Tense standoff at NWR
It appears tension between the NWR MD and the board has been mounting for several months.
The Namibia Wildlife Resorts (NWR) board has appointed Matthias Ngwangwama as the acting managing director following the suspension on Tuesday of Zelna Hengari.
In a brief statement released late on Tuesday, NWR board chairperson Leonard Iipumbu confirmed Hengari's suspension with full pay, on the grounds of a pending disciplinary investigation.
Iipumbu said the board did not “at this stage wish to divulge the nature of the investigations”, which however have widely been linked to a joint venture Hengari signed with Sun Karros. Hengari's was handed the suspension notice, dated the previous Thursday, on Tuesday morning while attending an executive meeting.
Her indefinite suspension was implemented before the start of today's annual general meeting (AGM), where she was set to announce an operational profit based on earnings before interest, taxes, depreciation and amortisation, of close to N$30 million, for 2018, for NWR.
This figure is N$10 million more than the close to N$20 million operational profit recorded for 2017.
Bad feelings
Minutes from a meeting held in mid-April and which was attended by public enterprises minister Leon Jooste and several deputies, indicate a wholesale breakdown in the working relationship between the board and Hengari.
Jooste at the meeting was informed that “of late there had been no trust between the managing director of NWR and her board and that the working relationship between the board and the MD was non-existent”.
The minister was also at the time informed that there were fears expressed that Hengari, if “not charged, she would interfere with the investigation process levelled against her”.
Resolutions following the meeting show the ministry supported Hengari's suspension on two conditions, namely that parallel to the suspension, an early termination of Hengari's contract be negotiated, which is slated to expire in mid-July, and that a disciplinary process be put in motion. Moreover, the meeting concluded to advise NWR to seek “proper legal advice”.
Hengari's suspension follows after Sun Karros Lifestyle Safaris in March brought an urgent application before the High Court after the NWR abruptly terminated a joint-venture (JV) agreement between the two companies.
Papers filed by Sun Karros at court showed the company had invested more than N$43.4 million in the construction of a glamour camping (glamping) resort at Sesriem, one of five to be constructed in terms of the JV that was signed on 11 June 2018. The facility is set to open on 1 July this year. To date, Sun Karros has constructed 20 “glamorous tents, a restaurant, small pool and 10 camp sites at Sesriem”.
The NWR board laid the blame of the agreement's cancellation squarely at Hengari's door, claiming the deal was approved “without the knowledge and authorisation of the board of directors of NWR and the minister of environment and tourism”.
The joint venture was restored following the threat of court action and meetings between the board and Sun Karros.
In the notice of suspension seen by Namibian Sun, Hengari was informed the investigation against her was grounded on allegations of “irregularities or misconduct” linked to the Sun Karros partnership, including allegations that the joint venture was not in line with the provisions of the Public Private Partnership Act, 4 of 2017.
Papers seen by Namibian Sun show that following a meeting between the NWR board and Struwig on 5 April, the parties had agreed to find an “amicable solution to the problems surrounding the glamping agreement”, and that going forward the parties would seek exemption from the finance minister for the joint venture “compliance issues”.
The parties also agreed to “enter into an interim agreement whilst they negotiate the terms of the main agreement, such as term, management agreement, participation percentages and limiting the agreement to Sesriem”. Further, that the agreement be limited to Sesriem and that any further projects to be undertaken are in compliance with applicable legislation.
JANA-MARI SMITH
In a brief statement released late on Tuesday, NWR board chairperson Leonard Iipumbu confirmed Hengari's suspension with full pay, on the grounds of a pending disciplinary investigation.
Iipumbu said the board did not “at this stage wish to divulge the nature of the investigations”, which however have widely been linked to a joint venture Hengari signed with Sun Karros. Hengari's was handed the suspension notice, dated the previous Thursday, on Tuesday morning while attending an executive meeting.
Her indefinite suspension was implemented before the start of today's annual general meeting (AGM), where she was set to announce an operational profit based on earnings before interest, taxes, depreciation and amortisation, of close to N$30 million, for 2018, for NWR.
This figure is N$10 million more than the close to N$20 million operational profit recorded for 2017.
Bad feelings
Minutes from a meeting held in mid-April and which was attended by public enterprises minister Leon Jooste and several deputies, indicate a wholesale breakdown in the working relationship between the board and Hengari.
Jooste at the meeting was informed that “of late there had been no trust between the managing director of NWR and her board and that the working relationship between the board and the MD was non-existent”.
The minister was also at the time informed that there were fears expressed that Hengari, if “not charged, she would interfere with the investigation process levelled against her”.
Resolutions following the meeting show the ministry supported Hengari's suspension on two conditions, namely that parallel to the suspension, an early termination of Hengari's contract be negotiated, which is slated to expire in mid-July, and that a disciplinary process be put in motion. Moreover, the meeting concluded to advise NWR to seek “proper legal advice”.
Hengari's suspension follows after Sun Karros Lifestyle Safaris in March brought an urgent application before the High Court after the NWR abruptly terminated a joint-venture (JV) agreement between the two companies.
Papers filed by Sun Karros at court showed the company had invested more than N$43.4 million in the construction of a glamour camping (glamping) resort at Sesriem, one of five to be constructed in terms of the JV that was signed on 11 June 2018. The facility is set to open on 1 July this year. To date, Sun Karros has constructed 20 “glamorous tents, a restaurant, small pool and 10 camp sites at Sesriem”.
The NWR board laid the blame of the agreement's cancellation squarely at Hengari's door, claiming the deal was approved “without the knowledge and authorisation of the board of directors of NWR and the minister of environment and tourism”.
The joint venture was restored following the threat of court action and meetings between the board and Sun Karros.
In the notice of suspension seen by Namibian Sun, Hengari was informed the investigation against her was grounded on allegations of “irregularities or misconduct” linked to the Sun Karros partnership, including allegations that the joint venture was not in line with the provisions of the Public Private Partnership Act, 4 of 2017.
Papers seen by Namibian Sun show that following a meeting between the NWR board and Struwig on 5 April, the parties had agreed to find an “amicable solution to the problems surrounding the glamping agreement”, and that going forward the parties would seek exemption from the finance minister for the joint venture “compliance issues”.
The parties also agreed to “enter into an interim agreement whilst they negotiate the terms of the main agreement, such as term, management agreement, participation percentages and limiting the agreement to Sesriem”. Further, that the agreement be limited to Sesriem and that any further projects to be undertaken are in compliance with applicable legislation.
JANA-MARI SMITH
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