TransNamib board chair and deputy resign amidst company crisis

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TransNamib (TN) board chairperson, Lionel Matthews and his deputy, Sigrid Tjijorokisa on Wednesday resigned from their positions.

This comes amid a national railway crisis with workers striking and an alleged disagreement over the extension of the contract of Chief Executive Officer, Johny Smith.

In her resignation letter, seen by Nampa, addressed to Minister of Finance, Ipumbu Shiimi, the deputy chairperson objects to the renewal of the contract of the incumbent CEO for another five years, a view the chairperson disagrees with.

“My objection against the decision of the board not to advertise the CEO [position], is that I am of the view that in the context of all the material irregularities brought to the fore and the current performance and employee climate of the company, that this decision is not only unacceptable but also grossly negligent and irresponsible,” Tjijorokisa said.

Matthews, meanwhile, in his resignation letter to Iipumbu said: “The deputy chair is of the view that the board is compromised to decide to renew the contract of the CEO for another five years. A view that I disagree with.”

Matthews said he is resigning as he would not allow his reputation and his character to be drawn into question.

Another bone of contention is the release of an audit report by Ernst and Young (EY).

EY was commissioned to investigate certain irregularities within the national railway company last year, however that report has not officially been released as yet.

Tjijorokisa indicated in the letter that, on 04 March 2022, the then Minister of Public Enterprises, Leon Jooste informed her that “many of the allegations forming the subject matter of this investigation are relevant”.

This communication has been shared with the board, she added.

Subsequent to this, she said, the report was handed over to the new chairperson (Matthews), alleging that the chairperson elected not to share this report with the board.

In his resignation letter however, Matthews said the EY report is still not finalised.

Following protracted turmoil at the State-owned company, workers at TransNamib downed tools on Wednesday, demanding the removal of some executives, as well as salary increases.

Contacted for comment on Thursday, TN Corporate Communications Manager Abigail Raubenheimer said she could not comment on board issues, referring this news agency to Minister Shiimi who was not reachable at the time.

Source: The Namibian Press Agency