Napwu wants ‘barbaric’ NIP vehicle purchases reversed
• Financial statements for FY2021/2022 pending
The Swapo-affiliated union questioned the wisdom of purchasing high-end cars for executives while the company has a shortage of operations vehicles.
The Namibia Public Workers Union (Napwu) says a decision taken by the Namibia Institute of Pathology’s (NIP) board of directors to acquire five vehicles for its executive committee is “barbaric and unlawful”.
The union is further demanding the resignation of the executives.
The institute’s mandate to serve the public is playing second fiddle to executives’ interests, general secretary Petrus Nevonga said in a letter to NIP board chairperson, Bryan Eiseb.
NIP earlier this month splashed N$5.3 million on vehicles for five of its top executives, despite the existence of fringe benefits to allow the executives to purchase their own vehicles, and the lack of vehicles to carry out essential services at the institution.
The recipients include company CEO Kapena Tjombonde (N$1.1 million), human resources executive Oaitse van Staden (N$1.1 million), chief technology executive Nabot Uushona (N$1 million), chief operations officer Vincent Nowaseb (N$987 000) and chief financial officer Scholastika Mwetulundila (N$1 million).
Nothing legitimate
Hitting out at the move, Nevonga said the purchase of the vehicles did not make any sense.
“The board of directors’ justification for approving the vehicle scheme compared to the benefits of employees does not make sense at all. NIP is a public entity, not a private organisation, hence the chairperson and the entire board of directors are obligated to service and prioritise NIP and the public interest first.”
The actions of the board were further unlawful, he said.
“There is nothing legitimate and lawful about this practice in the explanation and/or justifications of the board of directors towards our members’ petition. It is not recorded in the history of corporate governance where an institution is buying an employee a vehicle of his or her own,” the unionist added.
Of interest to Nevonga was who proposed that vehicles be bought for the executives.
“Who introduced this barbaric topic at a board meeting and with what interest? Why would the board introduce an additional benefit of free vehicles to the executives while they already have a car allowance incorporated into their remuneration?”
Employee interests disregarded
In taking the decision to purchase the vehicles, NIP’s board and executive committee disregarded the contribution of lower-ranked employees, Nevonga said.
“Napwu has concluded that the NIP board of directors does not value the pride and safety of its lower employees who are the backbone of this entity, and totally disregards Namibians’ needs for efficient service. And for that, you are negligent in your duties and deserve nothing but dismissal,” he said.
Nevonga cited examples where tests were lost because of the lack of a sufficient fleet at NIP.
“NIP [is] failing to provide basic tests, as is evident in that we are transporting samples through NamPost couriers from Windhoek to Oshakati, due to a lack of reagents and consumables in Windhoek.”
Executives, Nevonga said, earn reasonable salaries that allow them the opportunity to purchase their own vehicles.
“We note with concern that NIP executives are overpaid according to the remuneration and benefits guidelines, and it is for that reason we do not see your justification and reason to be morally acceptable. Kindly be advised that executive salaries are for public knowledge and not confidential, as cited by the chairperson,” he wrote.
Justify the purchases
Nevonga demanded to know why the vehicles were bought for the executives when the NIP does not have sufficient vehicles on hand.
“We demand reasonable justification why the board saw it necessary to buy high-end vehicles for managers while the company itself is in need of vehicles. The board must inform us why they opted not to comply with the Public Procurement Act when the money used to procure these vehicles is state funds,” he said.
The union also demanded that NIP reverse the purchase.
“We demand the reversal of the purchased vehicles so that the money can be used to purchase simple delivery vehicles.”
Napwu further found it odd that the NIP board sanctioned the purchase in the absence of audited financial statements that would give an accurate reflection into the company’s financial status.
“It is our logical conclusion that an institution can never have exceptional performance by executives while general workers have not performed. Financial statements for the years 2021/2022 have not yet been audited. Therefore, it is perplexing how the affordability of the managers’ vehicles was determined and not the incentives of workers,” Nevonga said.
“It does not make sense that the company is uncertain of its financial standing due to unaudited statements, yet some individuals are receiving an extension of fringe benefits while others are not.”
Eiseb earlier this month justified the purchase, saying board approval was granted to effect the purchase.
“I can confirm that we have approved a vehicle scheme for executives. Management is required to consider the scheme and implement it,” The Namibian quoted him as saying.
The union is further demanding the resignation of the executives.
The institute’s mandate to serve the public is playing second fiddle to executives’ interests, general secretary Petrus Nevonga said in a letter to NIP board chairperson, Bryan Eiseb.
NIP earlier this month splashed N$5.3 million on vehicles for five of its top executives, despite the existence of fringe benefits to allow the executives to purchase their own vehicles, and the lack of vehicles to carry out essential services at the institution.
The recipients include company CEO Kapena Tjombonde (N$1.1 million), human resources executive Oaitse van Staden (N$1.1 million), chief technology executive Nabot Uushona (N$1 million), chief operations officer Vincent Nowaseb (N$987 000) and chief financial officer Scholastika Mwetulundila (N$1 million).
Nothing legitimate
Hitting out at the move, Nevonga said the purchase of the vehicles did not make any sense.
“The board of directors’ justification for approving the vehicle scheme compared to the benefits of employees does not make sense at all. NIP is a public entity, not a private organisation, hence the chairperson and the entire board of directors are obligated to service and prioritise NIP and the public interest first.”
The actions of the board were further unlawful, he said.
“There is nothing legitimate and lawful about this practice in the explanation and/or justifications of the board of directors towards our members’ petition. It is not recorded in the history of corporate governance where an institution is buying an employee a vehicle of his or her own,” the unionist added.
Of interest to Nevonga was who proposed that vehicles be bought for the executives.
“Who introduced this barbaric topic at a board meeting and with what interest? Why would the board introduce an additional benefit of free vehicles to the executives while they already have a car allowance incorporated into their remuneration?”
Employee interests disregarded
In taking the decision to purchase the vehicles, NIP’s board and executive committee disregarded the contribution of lower-ranked employees, Nevonga said.
“Napwu has concluded that the NIP board of directors does not value the pride and safety of its lower employees who are the backbone of this entity, and totally disregards Namibians’ needs for efficient service. And for that, you are negligent in your duties and deserve nothing but dismissal,” he said.
Nevonga cited examples where tests were lost because of the lack of a sufficient fleet at NIP.
“NIP [is] failing to provide basic tests, as is evident in that we are transporting samples through NamPost couriers from Windhoek to Oshakati, due to a lack of reagents and consumables in Windhoek.”
Executives, Nevonga said, earn reasonable salaries that allow them the opportunity to purchase their own vehicles.
“We note with concern that NIP executives are overpaid according to the remuneration and benefits guidelines, and it is for that reason we do not see your justification and reason to be morally acceptable. Kindly be advised that executive salaries are for public knowledge and not confidential, as cited by the chairperson,” he wrote.
Justify the purchases
Nevonga demanded to know why the vehicles were bought for the executives when the NIP does not have sufficient vehicles on hand.
“We demand reasonable justification why the board saw it necessary to buy high-end vehicles for managers while the company itself is in need of vehicles. The board must inform us why they opted not to comply with the Public Procurement Act when the money used to procure these vehicles is state funds,” he said.
The union also demanded that NIP reverse the purchase.
“We demand the reversal of the purchased vehicles so that the money can be used to purchase simple delivery vehicles.”
Napwu further found it odd that the NIP board sanctioned the purchase in the absence of audited financial statements that would give an accurate reflection into the company’s financial status.
“It is our logical conclusion that an institution can never have exceptional performance by executives while general workers have not performed. Financial statements for the years 2021/2022 have not yet been audited. Therefore, it is perplexing how the affordability of the managers’ vehicles was determined and not the incentives of workers,” Nevonga said.
“It does not make sense that the company is uncertain of its financial standing due to unaudited statements, yet some individuals are receiving an extension of fringe benefits while others are not.”
Eiseb earlier this month justified the purchase, saying board approval was granted to effect the purchase.
“I can confirm that we have approved a vehicle scheme for executives. Management is required to consider the scheme and implement it,” The Namibian quoted him as saying.
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