Patience Makwele
The government’s decision to award a three-month fuel supply arrangement worth an estimated N$7.2 billion to international energy trader Vitol has intensified scrutiny of governance at state-owned oil company Namcor, which remains without a substantive managing director months after applications for the top position closed.
The arrangement has reignited questions over whether prolonged leadership uncertainty at Namibia’s national oil company may have affected perceptions of its ability to defend its strategic position in the country’s fuel supply chain.
The concerns emerge amid claims that Namcor submitted a cheaper proposal than Vitol, with critics arguing that the decision to bypass the state-owned entity raises broader questions about confidence in its operational capacity and strategic direction.
Namcor board chairperson Utaara Hoveka, however, dismissed suggestions that the company is operating in a leadership vacuum.
“When we had the minister on record, he said the process is over and there is a name that he is submitting to Cabinet,” Hoveka said.
Asked whether the board was concerned that the prolonged absence of a substantive managing director had created perceptions that Namcor had been weakened and sidelined in strategic fuel decisions, Hoveka rejected the notion of a leadership vacuum.
“There is no leadership vacuum in the sense that there is an acting executive there who has been an executive for some time,” he said.
Hoveka added that the board and the minister had been working together to fast-track the appointment process.
Independent Patriots for Change (IPC) member of parliament Imms Nashinge this week warned that prolonged acting appointments at state-owned enterprises create governance and operational challenges that ultimately undermine the institutions’ ability to perform their mandates.
“A number of state-owned enterprises, including Namcor, are operating without permanent chief executive officers. It’s quite a problem and it is eating into our progress as a country,” Nashinge said.
He argued that institutions without substantive leaders often struggle to take decisive action and aggressively pursue opportunities.
“You don’t have a substantive somebody to take decisions, aggressive decisions and fight for the entity. It hurts,” he said.
Applications for Namcor’s substantive managing director position closed in March, yet the company continues to operate under acting leadership.
The prolonged vacancy comes at a time when Namibia’s energy sector is undergoing changes, including efforts to secure fuel supplies and position the country to benefit from emerging oil and gas opportunities.
Political analyst Gilbert Mukoya Nyambe said the issue extends beyond whether someone occupies the office in an acting capacity.
“Leadership vacancies in strategic state-owned enterprises are not merely human resources issues; they are governance issues that shape institutional confidence, strategic agility and the ability to inspire confidence among stakeholders,” Nyambe said.
According to Nyambe, prolonged acting appointments can create uncertainty around long-term decision-making, strategic direction and accountability.
“An acting executive may be fully competent and empowered to manage day-to-day operations, but major stakeholders, including financiers, suppliers and international partners, often look for stability and permanence in leadership when engaging on high-value and long-term matters,” he said.
Nyambe cautioned that this does not necessarily mean Namcor was excluded from the fuel supply arrangement because it lacked a substantive managing director, as other commercial and policy considerations may have been involved.
“However, it would be difficult to argue that prolonged uncertainty at the top has no effect whatsoever on perceptions of an institution’s strength and readiness,” he said.
The debate over Namcor’s leadership and strategic role has also been amplified by former acting Namcor managing director Maureen Hinda-Mbuende, who warned that the government’s decision to grant Vitol an exclusive three-month fuel supply arrangement could have far-reaching implications for the country’s energy security.
In an open letter to minister of industries, mines and energy Modestus Amutse dated 31 May, Hinda-Mbuende argued that the arrangement should not be viewed merely as a short-term supply intervention.
“This should not be seen as only a three-month exclusive supply; we are effectively dismantling Namcor and, by extension, privatising the national oil infrastructure,” she wrote.
Hinda-Mbuende further cautioned that granting exclusive fuel import rights to a single foreign entity could expose Namibia to supply vulnerabilities and undermine the development of local industry.
“Exclusive foreign mandates sideline local players and state-owned enterprises like Namcor. This prevents the development of domestic expertise, limits job creation within the local energy sector and discourages indigenous investment in downstream infrastructure,” she wrote.
Her intervention adds to growing public debate about the future role of Namibia’s national oil company at a time when questions are also being raised about the delayed appointment of a substantive managing director and the institution’s long-term strategic direction.
The developments have prompted fresh questions over the future role of Namibia’s national oil company and whether prolonged uncertainty around its substantive leadership is affecting perceptions of its readiness to play a central role in safeguarding the country’s energy security.
Questions sent to Amutse were unanswered at the time of publication.
