Nored Cannot Afford Another Governance Crisis

**Namibia Cannot allow recurring leadership disputes at public-interest institutions to become normalised. **

The Northern Regional Electricity Distributor (Nored), which distributes electricity across eight northern regions, has become the subject of serious questions about executive leadership, board accountability, financial transparency and organisational stability.

These developments demand a measured but decisive response from the government.

Who must account for these failures: individual chief executives officers (CEO), the board of directors, or a flawed organisational culture?

Until these questions are addressed, Nored risks continuing a cycle of instability that undermines public confidence and creates avoidable financial liabilities.

Former Nored CEO Fillemon Nakashole successfully appealed against his dismissal.

Reports indicate the internal appeal replaced his dismissal with a final written warning, finding that dismissal was disproportionate to the established misconduct.

The ruling raises important questions about the quality of disciplinary procedures and the evidence supporting decisions affecting senior executives.

According to Namibian Sun, the dispute involved a performance bonus of approximately N$1.06 million paid to the CEO in 2021 before the necessary board approval of audited financial statements.

The appeal reportedly upheld findings of gross negligence while overturning other findings, including dishonesty.

Institutional concerns deepened when Nored suspended its new CEO, Silvester Wayiti, in September – just six months into his tenure – without publicly disclosing clear substantive grounds.

While boards must investigate credible allegations, executive authority should not be undermined through arbitrary suspensions.

Nevertheless, when successive CEOs face serious disputes with the same institution’s board, government should ask whether the recurring problem extends beyond individual personalities.

Nored requires leadership stability and professional relationships between directors and management.

Repeated suspensions without public explanation create uncertainty among staff and stakeholders while distracting from operational priorities.

Leadership disputes are particularly concerning when an institution faces financial and operational pressures.

Historical reporting by Windhoek Observer documented concerns about Nored’s delayed financial reporting, including difficulties experienced by shareholders in obtaining annual financial statements.

The absence of audited statements also affected NamPower’s ability to account fully for its investment in Nored.

Other reporting has highlighted substantial outstanding obligations to NamPower and concerns about cash flow.

These historical figures must be verified against current accounts before being presented as Nored’s present financial position.

An electricity distributor must maintain reliable reporting and internal controls.

The government must verify whether outstanding audits have been completed and whether financial controls adequately protect public resources, rather than allowing governance disputes to paralyse operations.

Addressing concerns of unfair treatment or discrimination requires an objective, evidence-based approach rather than assumption.

Decisions regarding appointments, suspensions, and discipline must follow established, transparent procedures.

Industries, mines and energy minister Modestus Amutse should initiate an independent governance review in consultation with Nored’s stakeholders and relevant authorities.

The Ministry of Finance should contribute within its mandate, particularly where financial accountability and exposure of public resources are concerned.

First, investigators should examine the circumstances surrounding Nakashole’s suspension and dismissal, the subsequent appeal, and Wayiti’s suspension.

They should assess compliance with employment contracts, company policies and applicable law.
Second, the review should evaluate board performance, including financial oversight, executive supervision, ethical leadership and the handling of conflicts.

Third, the government should require a time-bound corrective action plan covering audited financial statements, internal controls, disciplinary procedures and executive accountability.

Fourth, Nored should establish clear protocols defining the respective responsibilities of its board and CEO.

Disciplinary investigations must be evidence-based, properly documented and concluded within reasonable periods.

Fifth, shareholders and the nation should receive regular reports on governance reforms and financial performance.

Public communication must respect employment confidentiality while providing meaningful explanations of institutional decisions.

Dissolving the board should remain an option if an independent investigation establishes serious governance failures.

However, removing directors without establishing responsibility could create further instability and leave the underlying problems unresolved.

The appropriate response is an evidence-based assessment of individual and collective performance.

Where persistent failures, serious misconduct or an irreparable breakdown of governance is established, shareholders should consider replacing directors in accordance with applicable law and Nored’s governing documents.

Reform must address the institution’s systems, not merely replace personalities.
Namibia must protect its public-interest institutions from avoidable litigation, compensation liabilities and reputational damage.

This requires fair employment procedures, competent boards, accountable executives and effective oversight.

Where disciplinary decisions are overturned, institutions should examine the reasons and implement corrective measures.

Where misconduct is established, accountability must follow through lawful processes.

In the end, the government must protect neither a particular board nor an individual CEO at the expense of the institution.

Its responsibility is to protect Nored, its employees, stakeholders and the communities that depend on reliable electricity distribution.

• Hosea Shishiveni is a scholar, researcher, and thought leader. He can be reached at [email protected].

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