THE board of Directors of Air Namibia is accusing the State-Owned Enterprises ministry of constantly meddling in its business and therefore making it difficult for the national airline to carry out its mandate.
The board of directors, in a statement this morning, said that the ministry has carried out a number of governance transgressions, including not briefing the board on the allocated 2020/2021 N$948 million budget by the finance ministry and cabinet.
According to the board of directors, the enterprises ministry to date has not briefed them about the funds disbursed to the company, apart from a monthly allocation for employees’ salaries.
Air Namibia Spokesperson, Twaku Kayofa, in a statement said that the board was also unhappy with the ministry’s direct engagement with employees and trade unions to negotiate contracts while by-passing the board.
The ministry has also been accused of initiating a restructuring exercise without informing the board first, as well as procuring advisory services on behalf of the company.
“These are unfortunate instances that fly in the face of good corporate governance and have made it extremely difficult for the board to execute its fiduciary role,” Kayofa said.
He also revealed that the airline has developed a strategic plan which provides for a restructuring and includes terminating all the loss-making routes.
The restart plan also includes the termination of all leases and re-negotiating contracts and agreements.
“Liquidation would result in all more than 636 employees losing their jobs, whereas the re-start plan will preserve at least 50% of those jobs while enabling the airline to add value to the domestic economy,” Kayofa said.