•By Stefanus Nashama

The Agricultural Bank of Namibia (Agribank) has strongly pushed back against a series of recent allegations raised by disgruntled employees, describing many of the claims as misinformed and lacking context.

The allegations, which includes flawed recruitment processes, employee victimisation, nepotism, procurement irregularities, credit card abuse, and conflicts of interest, were outlined in a recent Confidente edition. 

Key figures named include Agribank’s board chairperson Josephat Mwatotele, deputy chairperson Peyavali Hangula, and chief executive officer (CEO) Dr. Raphael Karuaihe as well as former chief financial officer Louis du Toit. The employees have since escalated the matter to Finance Minister Erica Shafudah through a petition, seeking her intervention.

In a response this week, Mwatotele said the bank had attempted to engage the concerned staff directly to address their concerns, but the offer was declined. “The purpose of such a platform was to allow for direct engagement with staff or their chosen representatives, to gain a better understanding and context of the issues raised,” Mwatotele reiterated. 

“Unfortunately, this request was declined, preventing both the board and executive management from fully interrogating the concerns raised.” According to Mwatotele, the executive team identified 25 specific issues raised in the staff petition, with four concerning the board, 10 directed at the CEO, 15 involving executive management, and six relating to general operational matters.

While acknowledging that some concerns appear serious on the surface, Mwatotele suggested many stem from misinformation and poor internal communication. “We are not dismissing the concerns. However, many could have been clarified with accurate information,” he noted.

Mwatotele admitted that the manner in which concerns were raised signals a deeper issue of mistrust within the institution. He said the leadership is committed to improving staff engagement and internal communication going forward.

IN-DEPTH
Among the most controversial claims, is a payment of over N$1.1 million said to have been transferred into Mwatotele’s personal bank account as collateral security for a loan, a move employees argue is not consistent with standard practice.
At the same time, the employees accuse Mwatotele and Karuaihe of bypassing procedures in appointing Momentum Metropolitan Namibia (MMN) Credit Life Cover as a service provider on 16 October 2023, allegedly without following the Public Procurement Act.

In his defence, Mwatotele stated that the decision to explore credit life cover options was made in early 2022 to address rising credit losses tied to Covid-19-related deaths.  He said four major insurance firms such as Old Mutual, MMN, Sanlam, and Hollard were invited to submit proposals. MMN was ultimately selected. The employees informed Shafudah, that Hangula’ son attended the meeting that discussed this specific item.

“These allegations, if unsubstantiated, can cause severe reputational damage. Not only to the institution, but also to the individuals involved,” Mwatotele stated.  “We are confident in the integrity of the process followed and the individuals tasked with it.”

Another of bone of contention involves former CFO Louis du Toit, who allegedly recommended his own company, Fearless Finance, for a consultancy role. The consultancy, approved on 30 November 2023, was allegedly awarded N$294,000, without adhering to procurement protocols. 

Staff further claim Du Toit retains possession of a bank laptop, two monitors, and a Wi-Fi device.

CLARITY
Karuaihe last week told Confidente that the bank had responded to Shafudah compressively on the allegations and that they will not respond until the minister pronounces herself.  However, on Thursday, Karuaihe in a supplementary response, clarified followed a transparent process in appointing Momentum Metropolitan Namibia (MMN) as a provider of the life insurance product for its clients. 

“The need for a bid evaluation committee as cited in the article is not mandatory for the procurement method that has been applied. In this instance, there are only a few life insurance providers operating in the Namibian market namely,” 
On Hangula’son participated in Agribank’s technical committee meetings, Karuaihe say the claim “is entirely false and devoid of any truth.” 

“Hangula has no son that is neither eligible nor capable of participating in or engaging at meeting platforms. It is important to clarify that the Hangula, joined MMN in August 2023. Since she joined MMN, she consistently declared her interest in all matters related to MMN and has recused herself from any discussions or decisions regarding MMN’s products and services.”

Turning his attention to the supposed N$1.1 million reportedly paid to the board chairperson Mwatotele, he said: “Mwatotele became a client of Agribank in June 2022 before his appointment as a board chairperson, with effect from 1 November 2022.”

He said a request for direct disbursement into his account was processed and approved through appropriate authority structures as per the approved procedures, a process which Mwatotele did not participate in. Karuaihe further exonerated Du Toit of any wrong doing,