By Staff Reporter
Managing Director at the Namibia National Reinsurance Corporation (NamibRe), Patty Karuaihe-Martin had been accused of using the ongoing court case between the Ministry of Finance and the insurance industry to boost her company’s revenues to secure herself an increase in remuneration, The Patriot reported in July.
Karuaihe-Martin’s term in office lapses this month.
The Namibian National Reinsurance Corporation is categorised as a Tier 2 company due to the nature of its competitiveness, the level of its responsibility and the impact to the social life of the country. Tier 3 is regarded as the highest in terms of the legislation which governs State owned enterprises.
“NamibRe as a public enterprise does not have the power to determine its remuneration, particularly that of the CEO and senior management,” said Karuaihe-Martin in an e-mailed response to questions posed at the time.
The Patriot has had sight of a letter of re-appointment from the Minister of Finance, Calle Schlettwein, addressed to Ms Libertha Dewina Kapere, Chairperson of the NamibRe board and congratulating Karuaihe-Martin on her appointment, wishing her success.
“I herewith consent to the appointment of Mrs Petronella Amalia Karuaihe-Martin as the Managing Director of the Namibia National Reinsurance Corporation (NamibRe), for a period of five (5) years, with effect from October 1st 2019 until September 30, 2024.
The appointment of Mrs Karuaihe-Martin must be remunerated in accordance with the approved Remuneration Framework for Public Enterprises (Tier 1-3),” the appointment letter reads in part.
In July of this year, government began implementing its full mandate as a professional shareholder ministry, and started the transformation process meant for public enterprises.
Johnathan Swartz, chief public relations officer at the public enterprises ministry said at the time that some enterprises were not performing up to standard, adding that government was aware of the high remuneration of many PE managers.
“This has led to the high wage bill for PEs, which now stands on average at 45%. To curb this situation, already in 2010, the SOE Governance Council under the Office of the Prime Minister introduced a remuneration directive, which clearly stipulated how boards, chief executives, managing directors and senior management should be paid according to their PE classification. All PEs were mandated to comply with this directive. Unfortunately, most of them did not comply”, Swartz said.
The Patriot enquired as to whether or not Karuaihe-Martin accepted the offer from Board Chairperson Kapere who commented that “maybe you should call her. We are still in discussion”, she concluded.