6 months ago

New Era Newspaper Friday September 29, 2017

18 Inside BUSINESS

18 Inside BUSINESS Friday, September 29 2017| NEW ERA Get corporate governance right and you get sustainability right – Gawaxab Staff Reporter Windhoek At a recently held event in the capital, the executive chairman of EOS Capital, Johannes Gawaxab, outlined that the key to getting sustainability right in public and private institutions is right. Gawaxab made the remarks at a Nedbank Namibia Corporate and Investment Banking luncheon, which was also attended by Leon Jooste, the Minister of Public Enterprises. Gawaxab noted that in terms of corporate governance, as it relates to board composition, what’s needed is a broad set of good skills, good experiences, independence and diversity. “When we talk about diversity, this is not only in terms of gender, but also age and thinking. Some boards are totally dominated by one or two people who usually dictate all discussions. That’s not diversity,” he said. In terms of governance practices, Gawaxab encouraged boards to do self and independent valuations in order to determine effectiveness. “When it comes to board dynamics, the biggest thing we need to be careful about is to avoid boards from becoming dysfunctional, which hampers the ability of directors to do their jobs as required. We need to focus on managing the reputation of our institutions because so much harm is done to the reputation of institutions when there are public fallouts between board members and executives.” In addition, he said, what many don’t realize is that a company is Johannes Gawaxab actually a legal person that cannot talk, and that executives and board members are the only people who can speak on behalf of the company. “We need to try and protect the image of our entities. I think to focus on corporate governance is to protect the long-term interests of our shareholders and key stakeholders. Get corporate governance right and you get sustainability right,” he said. In rethinking corporate governance and “where we are reforming it in Namibia”, Gawaxab highlighted that it is of vital importance that it cannot be business as usual. “We cannot pursue the same path as we have the past 27 years and expect a different outcome. We need to appoint suitable directors, we need to hold directors and managers accountable, and we need to make sure once appointed, we take care of this person that’s been entrusted to us. I’d like to believe that there is consensus about what needs to be done to announce corporate governance at a macro and a micro level. We need to act on this consensus and make fundamental paradigm and mind shifts. We also need to make tough choices because in the end we are our choices. Let us build ourselves a great story, a great governance legacy, wherever we are,” he said. Lionel Matthews, the managing director of Nedbank Namibia, at the event emphasized the bank’s focus on fostering collaborations with the broader spectrum, including property finance and helping corporates, particularly in the public sector, to see how “we can work together”. Preaching the same message was the public enterprises minister Jooste, who propagated private and public sector collaboration. “We are in tough economic times and we need the private sector now more than ever. Let’s work together and form partnerships. I foresee opportunities and would like to encourage public-private partnerships. I believe that SOEs are in a position where they need to identify alternative and clever sources of funding. From the banks, there has been a very strong reliance on government guarantees in the past. I look forward to the day when we can move away from demanding government guarantees when it comes to funding SOE projects,” he said. The minister also commended Nedbank on its corporate social responsibility (CSR) activities, saying they were authentic, and encouraged other corporates to follow suit. The Nedbank Corporate and Investment Banking event was also attended by, amongst others, representatives from NamPower, the Motor Vehicle Accident Fund (MVA), NamibRe, NamWater and the University of Namibia. NOTICE Take notice that PLAN AFRICA CONSULTING CC, TOWN AND REGIONAL PLANNERS, on behalf of the owner intends applying to the Windhoek City Council for the: REZONING OF PORTION 31 (A PORTION OF PORTION C) OF THE FARM BRAKWATER NO.48 FROM ‘RESIDENTIAL’ WITH A DENSITY OF 1:5 HA TO ‘BUSINESS’ WITH A BULK OF 1.0 CONSENT TO USE THE PORTION FOR BUSINESS PURPOSES WHILE REZONING IS IN PROCESS. Portion 31 (a portion of Portion C) of the Farm Brakwater No.48 is 25,5478ha in extent. The intention of the owner is to use the Portion primarily for business purposes. Further take notice that the plan of the erf lies for inspection on the town planning notice board in the Customer Care Center, Main Municipal Offices, Rev. Michael Scott Street, Windhoek. Further take notice that any person objecting to the proposed use of the land as set out above may lodge such objection together with the grounds thereof, with the Town Council and with Applicant in writing within 14 days of the last publication of this notice (final date for objections 13 October , 2017). Plan Africa Consulting CC Town and Regional Planners P.O. Box 4114 Windhoek Tel: (061) 212096 Fax: 088614626 / (061) 213051 MARKET OVERVIEW Change Latest 3 months 0.00% 6.99% 6 months 0.00% 7.41% CGP CAPRICORN INVESTMENT GROUP L 1815 0.00% 9 months 0.03% 7.6% NBS NAMIBIA BREWERIES LTD 3725 0.00% 12 months 0.04% 7.80% BVN BIDVEST NAMIBIA LTD 787 0.00% Change Latest FNB FNB NAMIBIA HOLDINGS LTD 4677 0.00% GC18 (R204 : 7.04%) -0.01% 7.95% ORY ORYX PROPERTIES LTD 2065 0.00% GC21 (R208 : 7.57%) 0.00% 8.39% NAM NAMIBIAN ASSET MANAGEMENT LT 72 0.00% GC24 (R186 : 8.63%) 0.01% 9.85% NHL NICTUS NAMIBIA 189 0.00% GC27 (R186 : 8.63%) 0.01% 10.24% BMN BANNERMAN RESOURCES LTD 36 2.86% GC30 (R2030 : 9.18%) 0.00% 10.85% DYL DEEP YELLOW LTD 223 -1.33% GC32 (R213 : 9.26%) 0.00% 10.97% SILP STIMULUS INVESTMENT LTD-PREF 12129 0.00% GC35 (R209 : 9.55%) 0.00% 10.98% FSY FORSYS METALS CORP 141 -10.19% GC37 (R2033 : 9.41%) 0.00% 11.41% TUC TRUSTCO GROUP HOLDINGS LTD 495 0.00% %Change Latest B2G B2GOLD CORP 3769 -1.26% Gold 0.07% $ 1,283.63 Platinum -0.10% $ 919.76 Copper 0.00% $ 6,437.00 Brent Crude 1.04% $ 58.09 %Change Latest NSX (Delayed) -0.29% 1115.22 JSE All Share -0.36% 55,016.64 SP500 0.41% 2,507.04 FTSE 100 -0.21% 7,298.05 Hangseng -0.80% 27,421.60 DAX 0.30% 12,695.94 %Change Latest Financials -0.49% 15,000.00 Resources -0.99% 34,604.36 Industrials 0.01% 74,899.56 %Change Latest N$/US dollar -0.35% 13.5407 N$/Pound -0.10% 18.1734 N$/Euro -0.11% 15.9429 US dollar/ Euro 0.25% 1.1774 Latest Previous Namibia Inflation (Aug 17) 5.4 5.5 Bank Prime 10.50 10.50 BoN Repo Rate 6.75 6.75

Friday, September 29 2017| NEW ERA ADVERT 19 PRESS STATEMENT CLARIFICATION OF THE ALLEGATIONS IN THE ARTICLE CONTAINED IN THE VILLAGER NEWSPAPER REGARDING THE NSFAF BOARD AND CEO (22 SEPETMBER 2017) An article appeared in The Villager Newspaper, Friday, 22 September 2017, alleging the existence of correspondences exchanged between certain Cabinet Ministers, ordering and/or advising the firing of the NSFAF Board with immediate effect. The article does not only present a potential for serious misperceptions regarding the state of governance at the NSFAF, but also lowers the confidence amongst the institutional stakeholders as much as it is damaging to the reputation of the Fund and good names of its individual Board members. In the premises, the Board hereby wish to set the record straight on the state of affairs at the NSFAF: 1. The appointment of the current Board took effect from the 1st January 2015. Since the assumption of duty on the first day todate, the Board members, individually and collectively have always and continue to diligently discharge their fiduciary duties in the best interest of both the NSFAF and its stakeholders. 2. It is equally indisputable that for the past two years and half, there have been a number of governance issues in the organization, which warranted questioning from the current substantive NSFAF Board members. It is the aftermath of some of these issues that continues to haunt the institution to this very day. Justifiably, the minds of the public may be pre-occupied by the question as to what the Board has done or endeavored to do to bring the institution on track. Hereunder, are some of the interventions undertaken by the NSFAF Board in an attempt to address certain governance aspects at the NSFAF: a) Establishment of the governance framework, including but not limited to the approval of various operational policies, Delegation of Authority Matrix and Reporting Protocols. b) Execution of a Due Diligence Exercise into the operational activities of the Fund. c) Mandating an HR Review following a Group Grievance filed by 10 senior level employees. Although, the forementioned interventions were carried out without impediments, there were some others that could not materialize timeously and/or at all, owing to external interferences of political formation. These, without limitations, include: i. Recruitment and appointment of the Internal Auditor. ii. Investigation(s) into the allegations of conflict of interest regarding the awarding of some tender(s), implicating certain management cadres. In more specific terms, at one particular point, the Board was requested to halt its intended investigation into the allegation(s) of conflict of interest and to instead allow the Ministry of Public Enterprises (MoPE) to launch a Special Investigation into the affairs of the institution. The MoPE started the Special Investigation around November 2016 and concluded same at the beginning of this year, 2017. Pursuant to the conclusion of the Special Investigation, the MoPE’s report and/or its recommendations has not been extended to the NSFAF Board to date. Regrettably, the Board only learnt about the alleged content of the report through the Media (Informante, 10 August 2017 and now The Villager, 22 September 2017). We would like therefore to inform our stakeholders in particular and the public at large, that: NSFAF Board publicly ascribes to the Corporate Governance Principles and Standards as advocated in the NAMCode. The article published by The Villager Newspaper alleging the imminent firing of the NSFAF Board remains unconfirmed through official platforms. We further vehemently deny that the NSFAF Board has been slow in addressing the prevailing issues at the NSFAF. To the contrary, we have taken a number of definite measures to improve governance and controls and we raised pertinent questions, in line with good governance practices within the framework of NamCode. We categorially deny any allegations of victimization against any staff, including the CEO. Conversely, the Board is committed to support and assist the CEO and her executive team to rightfully execute their mandate in the organization, and will remain alert and living up to its mandate by asking pertinent questions of good governance. We deny undue interference into the operations of NSFAF, or contracting service providers without the involvement of management. Actions taken by the NSFAF Board without management accord, was duly taken in terms of the governance rules of NamCode and/or within governance confinements, where in all such cases, management was affected, involved or conflicted. Lastly, allow us to clarify that the NSFAF Board is paid in accordance with the Board Remuneration Policy as approved by the Shareholder. In terms of the approved policy, the Board remuneration is pegged at Tier 3 and this is also supported by the 2017 recommendations of the MoPE contained in a document entitled, “Classification of SOEs into Tiers and Remuneration Directives”. Therefore, the allegations of the NSFAF Board being highly paid and outside the Remuneration Governance Framework are mere propaganda, which are deliberate and sponsored with the intentions of silencing the governance voice within the Board and/or tarnishing the reputation of the Board members. It is therefore hoped that this Press Statement clarifies the misconceptions that The Villager article and preceding others may have caused. On the strengths of the foregoing, the NSFAF Board hereby assure the Shareholder and all the institutional stakeholders of its continuous commitment towards the fulfilment and execution of the Fund’s statutory mandate. Furthermore, the NSFAF Board continues to pledge its unwavering loyalty and service for the best interest of the NSFAF, the Shareholder, and the nation at large, for the remainder of its term of office. By NSFAF Board PATTY KARUAIHE-MARTIN BOARD CHAIRPERSON Timotheus Angala Board Member Leezhel van Wyk Board Member Franz Gertze Board Member Taina Nankela Board Member MBUSHANDJE NTINDA BOARD DEPUTY CHAIRPERSON | find us on facebook

New Era

New Era Newspaper Vol 22 No 167