A number of managers of the National Housing Enterprise have asked the minister of urban and rural development: Business and Management Assignment, TC, Ireland

A number of managers of the National Housing Enterprise have asked the minister of urban and rural development and that of public enterprises not to renew the company’s chief executive officer’s employment contract.

They made this call in a petition dated 9 April, which was addressed to the two ministers, and circulated on social media platforms.

The authenticity of the document was confirmed by two managers, who asked for anonymity.

According to the managers, CEO Gisbertus Mukulu lacks the necessary strategic and operational experience to run the institution.

They also accused Mukulu of frustrating the NHE’s operations due to him being “highly indecisive and routinely procrastinating”.

“The chief executive officer (CEO) lacks the necessary leadership skills to articulate and promote a modern and robust vision for the NHE. In this regard, a capacity assessment was conducted and paid for by the NHE, which confirms the lack of leadership and strategic capacity in the NHE,” the petition read.

The managers further alleged that Mukulu failed to take charge of the NHE’s affairs. They claim because of Mukulu’s lack of vision, the housing enterprise has failed to achieve two critical objectives of its strategic plan – growing its loan book, and building 1 250 houses annually.

The managers also criticized the board’s decision to make the land for the construction of houses for the Twaloloka informal settlement fire victims are available at Walvis Bay.

“Twaloloka residents’ plight was a primary concern and the responsibility of the Walvis Bay The municipality, not the NHE,” they said. The petition follows a letter written to Minister of urban and rural development Erastus Uutoni on 1 April, which was signed by six managers, and has been seen by The Namibian.

In the letter, titled ‘Serious Governance Concerns at the NHE’, the managers highlighted the failures of the institution to achieve its mandate in the past four years. According to the letter, this has placed the institution in financial distress, which they fear would lead to its closure.

“In the not-so-distant future, the NHE may not be able to pay salaries, let alone meet its financial obligations,” said the letter. The demand by the managers for Mukulu’s term of office not to be renewed comes two months before his term of office comes to an end on 30 June 2021.

Mukulu refused to respond to the allegations, saying it is an internal matter.
“I reserve my comment on the incompetencies, and I also want to inform you that this is an internal matter,” he said. The managers are also calling for the removal of two of its board members whom they believe are compromised because of their day-to-day employment positions.

This includes board chairperson Sam Shivute, the commissioner of the Namibia Revenue Agency, and Oscar Capello, the chief financial officer at First National Bank, which also provides mortgage finance to NHE clients.

Shivute said he would respond to the petition during the course of the week after meeting with the concerned parties. Urban and rural development ministry executive director Nghidinwa Daniel said they have not yet received the petition.

Questions

• Is it necessary for a CEO to possess the strategic and operational experience to be a successful manager? What do you think Gisbertus Mukulu should do to restore the confidence of the managers concerned?
• Highlight the repercussions of indecision. Why was it imperative for the CEO to make decisions, and how are decisions made, in terms of hierarchy, authority, and delegation.