Employees want Namdia CEO out

Namibia Desert Diamonds (Namdia) CEO Alisa Amupolo is facing internal resistance - halfway through her tenure - after several employees called for her removal due to alleged incompetence, which has allegedly cost the company over N$230 million in lost revenue.Namibian Sun understands the workers wrote to the company’s board, claiming that Amupolo is not fit to lead the organisation and that diamond sales and international relationships with global diamantaires have been eroded. Amupolo, who hails from a media background, is said to be struggling to find her feet in the highly competitive and somewhat fragmented global diamond arena, with claims that she lacks an understanding of the industry and the necessary expertise. She previously worked as CEO for ICT infrastructure company PowerCom, a subsidiary of Telecom Namibia.Namdia yesterday defended Amupolo, saying she is a transparent leader under whose tutelage the company managed to record a profit, despite the unstable diamond market.‘Hand-to-mouth operation’In the vote-of-no-confidence letter sent to the board a week ago, workers in the bargaining unit, which is represented by the Mineworkers Union of Namibia (MUN), said Amupolo’s actions resulted in the company’s financial fortunes changing from a flourishing position to the point where it cannot afford to purchase diamonds to sell on to its global clientele.They said: “In one and a half years, the company has degraded from a billion-dollar entity to a ‘hand-to-mouth’ operation, clearly indicating mismanagement that could lead to the company&#039;s closure”.There were allegedly periods when no purchases or sales were made because Namdia could not afford to collect diamond parcels from Namibia Diamond Trading Company (NDTC).According to the employees, towards the end of 2023 and the beginning of 2024, Namdia did not purchase three shipments, resulting in no sales during that period. In some instances, parcels were sold at a loss while other parcel entitlements were passed on to competitors, they claimed.It is understood that Namdia is entitled to at least 10 parcels from NDTC per year. In 2024, four parcels were already forfeited, while less than half of the parcels were bought last year. Once Namdia buys the parcels from NDTC, they are then sold on to its clients.InterferenceThere are also claims that Amupolo interferes in sales matters by dictating which clients Namdia must do business with, which has resulted in the company losing over US$8 million (N$146 million at yesterday’s exchange rate) last year. This figure allegedly stands at around US$5 million this year (N$91 million).Namdia has a client database of about 35 buyers.“We all understand that Namdia can only be sustainable if purchases are made from NDTC and subsequent sales occur. The CEO&#039;s strategy of stockpiling has led to significant financial losses for the company, which could potentially result in its closure and loss of income for many families,” concerned employees said.“We believe the current CEO is incapable of leading the company to greater success, contrary to the mission of her predecessors and the inaugural staff of Namdia,” the letter read. Amupolo replaced Kennedy Hamutenya as CEO of the company.The new head honcho, whose term runs until 2027, has also been accused of alienating Namdia&#039;s clients by refusing to engage with them on numerous occasions.Leadership styleNamdia insiders claim that the relations between the workers and Amupolo hit rock bottom soon after the latter’s appointment.“We have identified several issues with her management style that have led to job uncertainty and dissatisfaction in the workplace. "Namdia was established to discover the pricing of Namibian rough diamonds, a high-value commodity. However, under her leadership, the company has struggled in its core business, with periods where no purchases or sales were made,” the workers said in a letter.Workers also accused her of micromanaging operations, prompting backlash that led to a lack of confidence in her from the management team.Internal grievance processWhen contacted for comment, Amupolo directed all queries to the company’s spokesperson Beverley Coussement, who responded by saying that neither the board nor management received the letter in which the employees expressed a vote of no confidence in the CEO.“The board and management has to date not received the alleged vote of no confidence or other allegations, verbal or written,” she said.“Namdia has an internal grievance process that staff are encouraged and bound by, as per company policies, aimed at fostering a productive and harmonious work environment, underpinned by transparency,” Coussement said.“It is noteworthy to highlight that the diamond industry is subject to seasonality and fluctuating global market conditions,” she added.

Employees want Namdia CEO out

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Namibian Sun 2024-11-22

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Employees want Namdia CEO out

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Namibian Sun 2024-11-22

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