By:Hertha Ekandjo, AnnakletaHaikera
Lands Commissioner, Martin Hilbert’s appointment to Meatco Board, has raised concerns, over what is alleged to be his proximity to rival meat company, Savanna Beef Processors.
This comes after sources who spoke on condition of anonymity, claimed Hilbert, a suspected shareholder of Savanna Beef, was too close to the private firm and cited conflict of interest.
Hilbert, who along with 10 other directors was appointed for a six-month tenure, is reportedly a known protagonist of Savanna Beef.
Former deputy minister of works and transport, James Sankwasa is among those who questioned minister of finance IpumbuShiimi’s decision to appoint Hilbert.
Sankwasa, who earlier this year lashed out at agriculture minister Calle Schlettwein, for allegedly advancing privatisation of Meatco, took issue with the decision to appoint a Savanna insider, as he believes it to be part of an agenda to derail the state owned enterprise.
He claims the appointment of Hilbert, if it is true that he is a shareholder of Savanna Beef, undermines the efforts of the current management to save the institution, and is aimed at destroying the company from within.
“If you have such members on the board, they can access sensitive information about Meatco, including its strengths and weaknesses, and use it to destroy the company from inside,” Sankwasa highlighted.
On his part, Hilbert declined to comment, adding that if it is about Meatco business, he wished to “remain under the radar for now” and not respond to questions around his appointment.
When contacted by The Villager to ascertain veracity of the claims made against Hilbert, Savanna Beef Chairperson Mecki Schneider, vehemently denied knowledge of him as a shareholder of Savanna Beef. “I cannot say whether he is a shareholder or not a shareholder. Because I cannot follow 712 investors. But why are you so interested in him?” Schneider wanted to know.
Pressed to share the list of shareholders of Savanna Beef, Schneider claimed he could not do so at this time as he is in Lubango.
He further questioned who is behind a probe around Hilbert in relation to Savanna Beef and Meatco.
Responding to further questions via WhatsApp call, an audibly irritated Schneider then said he is not interested in shutting down Meatco as he and other farmers deliver to Meatco. “We don’t want to kill off Meatco! Never! What we want is to retain 50 thousand weaners, because we think we can pay a better price,” Schneider explained.
Sankwasa however said answers lie with Shiimi. “He (Shiimi) knew, because there’s what is called a reference check in this country. You do not appoint people you did not know. And when you appoint people for certain objectives, it’s either to improve or destroy the business,” Sankwasa added.
Competition between Meatco and Savanna
Following its establishment in November of 2020, Savanna Beef has been viewed as a potential competitor of Meatco, with some voices in the industry claiming that a plot against the latter was in the works, to ensure the former’s smooth entry into the lucrative beef market.
In October last year, Meatco CEO, MwilimaMushokobanji welcomed competition from Savanna, adding that new entrants would help stabilise the industry if they could sustain local weaner retention.
Earlier this year however, Meatco refused to entertain a proposal by Savanna Beef to collaborate on the usage of its abattoirs to slaughter beef for export.
The company has been in a battle to survive privatisation talks emanating from a report commissioned by the Ministry of Finance and Public Enterprises, which recommended a public private partnership, known as the Meatco Rescue and Restructuring Proposal.
The report conducted by OmbuCapital, suggested splitting Meatco into two by establishing a second meat company to be tasked with managing operations while the holding company would be responsible for regulating the meat industry.
These recommendations were dealt a blow in May, when the Ministry of Agriculture, responding to a submission to the Cabinet Committee on Overall Policy and Priorities (CCOP), informed Shiimi that it did not support the privatisation of Meatco resulting in two entities.
Schlettwein’s Ministry instead insisted that regulatory functions should remain with agriculture, and further proposed a N$1.7 billion once off recapitalisation of Meatco over a period of three years.
On 11 August, the Ministry of Finance submitted a Revised Agenda Memorandum, highlighting its position to implement its Restructuring Proposal, which sought to privatise certain functions of Meatco.
Documents obtained by The Villager confirm Shiimi’s rescue proposal did not enjoy widespread support from the majority of cabinet ministers, deputy ministers and even regional governors.
Sources speaking on anonymity, disclosed Shiimi’s defiance of the directives emanating from high level deliberations held on 2nd and 8th of August of this year.
CEO Suspension Plot
It was also revealed that a directive to extend the tenure of the previous board to implement agrarian reform, had been ignored by Shiimi, who instead appointed an interim board on the 1st of September.
This has led to allegations, accusing Shiimi of hastily employing a new board, which would see to the suspension of Mushokobanji, believed to be a thorn in the flesh of privatisation efforts.
“We have information that this board is instructed to remove the CEO because the previous board failed to do so,” Sankwasa said.
A source close to the development said a meeting was called without the knowledge of Mushokobanji, to discuss his suspension.
Questions sent to previous Meatco board chair, Adolf Muremi, who has been reappointed in Shiimi’s new intake, went unanswered, while he prior confirmed he would do so.
Member of Parliament, Ephraim Nekongo, joined the chorus of concerned voices who believe a conspiracy against Meatco had been fashioned to privatise the company in favour of those who stand to benefit from its closure.
“We see an element of people who want to get rid of Meatco, just the same way they got rid of Air Namibia. What we said is now to say, we know how Meatco has been starved of not having enough cattle to slaughter so that it is able to make profit,” Nekongo said.
Nekongo’s SPYL remains adamant against Meatco privatisation and advised workable solutions to resolve issues.
While not referring directly to allegations against Hilbert and Shiimi, Nekongo cautioned those behind alleged plans to privatise Meatco to instead go back to the drawing board.
“For us to enjoy the peace and tranquillity that we need to enjoy, we must be able share the cake,” Nekongo said.
Efforts to reach the Minister of Finance for clarity, proved futile for two weeks, with ministry spokesperson Wilson Shikoto, claiming the Minister was attending a conference and thus could not respond.
