Minister of Urban and Rural Development James Sankwasa has rejected the Rundu Town Council’s decision to extend the CEO, Olavi Nathanael’s contract for another five years.
In a letter sent to the minister in October, RTC informed Sankwasa that they have resolved, on recommendation of the Management Committee, to extend Nathanael’s contract of employment with effect from 03 May 2026 until 02 May 2031.
Nathanael accepted the offer from the council, but Sankwasa replied, saying renewal of a contract for a CEO should be based on provable work performance in terms of the performance management system.
“There is no reason to extend his contract based on what Rundu is or looks like. Rundu is in a devastating state, and the CEO has failed, so there is no reason to extend,” Sankwasa told reporters during a telephone interview.
Sankwasa recommended in a letter to Rundu Mayor Gabriel Kanyanga that they advertise the position to ensure a transparent and competitive recruitment process.
“For too long, the local authorities in this country have been run like banana republics. We cannot continue that way,” Sankwasa told NBC News.
RTC, on the other hand, sought legal opinion on the matter, and the lawyers recommended that the council’s renewal resolution is lawful and contractually valid.
The lawyers also said Sankwasa’s objection is advisory and non-binding.
The Minister of Urban and Rural Development, however, says councillors who took the decision to extend the CEO’s contract will have to bear the consequences.
“Whatever legal opinion the Council has, it will be tested against the High Court decision, and if this man (Nathanael) goes to court and claims that his contract was extended, the councillors will be held liable to pay the money for that illegal and incorrect decision. They will pay back all that money because now they have given this guy (Nathanael) false hope, which they know. The incoming council might not even accept him because the incoming council will say, Look, this person was rejected by the minister.”