• By Stefanus Nashama

A string of allegations ranging from flawed recruitment processes, victimization of employees, nepotism, procurement irregularities, credit card abuse and conflict of interest are haunting the corridors of the Agricultural Bank of Namibia (Agribank). 

These and many more accusations are levelled against Agribank’s board chairperson Josephat Mwatotele, his deputy Peyavali Hangula and chief executive officer (CEO), Dr. Raphael Karuaihe and ex-chief financial officer (CFO) Lous du Toit, amongst others.
In letter addressed to finance minister, Erica Shafudah, dated 30 April 2025, disgruntled employees cracked opened a calabash of damning internal irregularities. 

According to the document seen by Confidente, they further cite discontent with the current leadership, questionable consultancy appointments and an array of violations of human resource procedures. They took issue with a payment of more than N$1.1 million paid directly into Mwatotele’s personal bank account as collateral security as a client of Agribank, a policy which allegedly is not revised to apply to other clients. They claim Du Toit, while still an Agribank employee, recommended his own company to be appointed for a consultancy.  

DAMNING
The employees accused Mwatotele and Karuihe of not following the internal procurement procedures when they appointed a credit card service provider, MMI Credit Life Cover on 16 October 2023 “We understand the reasons behind management or the board of directors’ decision to source the service of insurance companies, but our concern is focused on the full implementation of internal procedures, guided by the Public Procurement Act, which was not followed to appoint a credible service provider,” the employees wrote to Shafudah. 

They say, the bank did not invite bidders through the normal procurement process. “The Act, gives power to the accounting officer (CEO) to establish an ad hoc bid evaluation committee, after consulting with the procurement policy unit, for the evaluation of bids.  “We can confirm that the [CEO] established an ad hoc bid evaluation committee and the procurement policy unit approved this structure. 

However, we can state on record that there were no official ad hoc bid evaluation committees that were constituted to evaluate the credit life bid. “We have records that clearly show that Hangula’s son attended the Agribank technical committee meeting that discussed the MMI services last year.”

NEPOTISM
In another revelation, the letter fingers Du Toit of recommending his own company, Fearless Finance, to be appointed for a consultancy that proactively recognizes potential credit losses.  This, they say, was also done without the correct procurement procedures.

According to the employees, the recommendation was made on 30 November 2023 and approved by Mwatotele instantly. 
They added, that an amount of N$294 000 was paid to Fearless Finance. Du Toit, the letter reads, is still in possession of Agribank laptop, two big screens and an active pocket Wi-Fi.

CONFLICT OF INTEREST
Additionally, Shafudah has been informed that, an amount of N$1,173,770.67 was improperly paid directly into Mwatotele’s account as a client of the bank. “This payment was made on the condition that his collateral security was in place and that management would revise the relevant policies to standardize the practice concerning disbursements to clients’ direct accounts.” 
“However, since receiving this benefit, Mwatotele has not yet endorsed the policy revisions to ensure that all clients with collateral security can benefit in the same manner.”

Reads the letter: “We believe that the board has a responsibility to uphold and protect the bank’s policies and procedures without exception. Furthermore, the board should lead by example in performing Agribank core functions, whether in their personal capacity or as board members”.

AWARE
In response, Karuaihe confirmed the allegations and the letter written to Shafudah by the unhappy staff members.  “These are allegations coming from last year and we responded accordingly via the minister (Shafudah), because the complaints came through her,” said Karuaihe.  “That is all I can tell you for now, until the minister pronounces herself. No further comments on both the complaints and our submission,” he maintained. 

Confidente understands that a joint meeting was scheduled to take place on 13 June 2026 with Shafudah, however, Karuaihe said that the meeting did not take place.  The meeting was set to include Agribank and the Namibia Financial Institute Union.