Cabinet forces ex-Meatco CEO’s return

Mwilima Mushokabanji


Cabinet is reportedly forcing the return of former Meatco chief executive officer (CEO) Mwilima Mushokabanji, who is accused of failing to rescue the state-owned meat entity from financial ruin.

Mushokabanji’s return could signal another key decision by president Netumbo Nandi-Ndaitwah’s Cabinet to override concerns about the ongoing injection of state funds into the corporation.

The Meat Corporation of Namibia (Meatco) has become one of the first battlegrounds in the new administration’s political struggle, with factions split between those advocating for continued government bailouts and those opposing further state funding of the struggling parastatal – such as former finance and public enterprises minister Iipumbu Shiimi.

The former finance minister had reportedly obtained a legal opinion supporting the view that the appointment of Meatco’s CEO is the sole responsibility of the board and not Cabinet.

Nandi-Ndaitwah is reportedly backing Mushokabanji’s return, influenced by Swapo’s Sophia Shaningwa and her ally, businessman Joseph Andreas, who have been pushing to reinstate the ousted Meatco executive. Andreas is known for his business interests in the beef market.

The Meatco affair runs deep. The Namibian understands that at one point last year, Shaningwa allegedly accused Shiimi of defying a Cabinet directive, warning that Mushokabanji’s saga could cost Swapo votes in the Zambezi region.

Sophia Shaningwa

Sources believe that Nandi-Ndaitwah dropped Shiimi from Cabinet for refusing to give Mushokabanji a new contract when his term ended in January this year, among other reasons.

The plan to give Mushokabanji another five-year term has been in motion since last year. In August, Cabinet instructed the finance ministry to renew Mushokabanji’s contract, but Shiimi and the board refused to implement the decision.

The Meatco board, which reported to Shiimi, was also reportedly divided. Some members backed Shiimi’s stance to refuse, while another faction supported Andreas.

Sources close to the matter say Meatco chairperson Sakaria Nghikembua and most board members told Shiimi that they should be given the opportunity to explore other candidates who might be better suited for the role, rather than being forced to retain Mushokabanji.

These sources also say Nghikembua threatened to resign to protect his reputation as a solid corporate executive from damage by being seen as having allowed the mismanagement of Meatco to continue, or being seen as open to interference.

Nghikembua told The Namibian yesterday that the board could not comment on Mushokabanji’s return, as it is waiting for “an engagement with the respective ministers tasked with the matter by Cabinet, at their earliest availability”.

Iipumbu Shiimi

Mushokabanji said yesterday that he was in a meeting and unavailable. He promised to respond via text message but had not done so at the time of going to print.

Mushokabanji has been in the news for Meatco’s financial struggles, including a reported N$206 million pre-tax loss and a government bailout of N$200 million.

Meatco has struggled due to its failure to pay farmers on time, leading to job losses and cash flow problems. Despite this, a group of ministers and senior government officials seem determined to bring him back to the company.

The Namibian is informed that former home affairs minister Albert Kawana also led the campaign for the unilateral appointment of Mushokabanji, with Cabinet secretary George Simataa allegedly insisting that the item remain on Cabinet’s agenda.

Kawana did not answer calls to his mobile phone yesterday, while Simataa said he was not empowered by the Constitution to comment on Cabinet decisions. “I am not the government spokesperson. Please talk to the minister of information,” Simataa said.

The Brief reported last year that Meatco failed to pay 245 commercial livestock farmers N$320 million for cattle delivered to its abattoir due to significant financial challenges. This was according to an organisational review conducted by consultancy firm Ombu Capital.

It was reported at the time that Meatco was slaughtering only 2 250 animals per month, far from the 5 000 to 6 000 required for the company to break even.

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