PDM faces financial collapse, plans to axe 16 staff after election defeat
Popular Democratic Movement (PDM) is planning on retrenching 16 employees as it struggles to stay afloat financially following its huge defeat in the 2024 presidential and National Assembly elections.
According to a leaked document dated 19 May and seen by The Namibian, PDM management, led by party secretary general Manuel Ngaringombe, informed staff representatives that the party’s current salary commitments amount to 60% of its income.
PDM president McHenry Venaani yesterday said the retrenchment issue is internal and ongoing.
“You can ask me about policy, not administrative matters. The whole process of retrenchment has not started. We are still negotiating,” Venaani said.
He referred questions on the matter to Ngaringombe instead.
Ngaringombe did not respond to questions or calls made to him at the time of going to print.
According to the document, Ngaringombe says without immediate action, the party risks complete financial collapse.
PDM faced defeat in the 2024 presidential and National Assembly elections after it lost 11 parliamentary seats, from 16 to five.
A list of 16 staff members earmarked for retrenchment was shared during the meeting, alongside 13 employees who will be retained.
Management also proposed that all 16 regional coordinators and three wing leaders take three months of unpaid leave, after which they would return on reduced pay and commission-based compensation. The document shows that regional coordinators will receive salaries of N$2 000 and they will be paid for work done on a commission basis.
“Ngaringombe emphasised that the reason for retrenchment is economically motivated which will also be the reason given to the labour commissioner. He said PDM will do what it can when it is not monetary, such as write testimonials. However, when it comes to monetary demands, the party can only do what it can do,” the minutes read.
Staff representatives, led by Collen Wimmerth, question the selection process of those employees facing retrenchment.
Wimmerth calls for clarity on salary deductions, and proposes alternative measures, including a 5% to 10% salary cut across the board and fair severance packages.
“Ngaringombe also acknowledged the administrative weaknesses in formalising agreements and committed to addressing them going forward by ensuring employees receive pay-slips every month end so that employees are always informed of any deductions. He also ensured the delegates that there will be no unfair treatment of staff in this process,” the document reads.
It futher notes that some regional coordinators of the party reported being informed that they would receive the standard salary of N$7 000 but were instead paid reduced amounts without their explicit consent – in some cases as low as N$3 400.
A party central committee meeting allegedly agreed that regional coordinators in rural areas must be paid N$5 000 while those in urban areas must be paid N$7 000.
Additionally, the document shows that PDM treasurer Nico Smit pointed out that the income of the party determines what the party can and cannot do.
Ngaringombe allegedly sent a memo to all employees in 2024, stating that their contracts will be terminated in March 2025 should the party perform poorly during the elections.
“Smit said if regional councillors were to demand that they are paid out for the remaining 4 1⁄2 years of their contract, and the party is unable to, and a court of law orders the party to do so, the party will be declared insolvent. This would lead to the party’s deregistration at the Electoral Commission of Namibia (ECN), and councillors, as well as members of parliament would lose their jobs instantly,” the document reads.
PDM is currently in court as six senior members are suing the party, the ECN and the National Assembly for compensation of N$1.9 million over their exclusion from parliament in 2020.
Political analyst Marius Kudumo says it is obvious that losing seats in parliament has implications on the revenue of political parties.
“The future political and financial stability of the party would depend on whether the party has income generating strategies in place to fill the gap,” Kudumo says.
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