Individual amounts owed to the DFN range from just over N$100 000 to more than N$4 million.

Development Bank of Namibia CEO David Nuyoma told The Namibian that an audit had been commissioned to see what outstanding debts could be recovered.

The full financial status of the DFN would be known once the audit was completed, by the end of November, Nuyoma said.

The DFN was set up with a N$40 million State grant shortly after Independence and has since been absorbed into the Development Bank of Namibia.

It had cash of more than N$140 million on hand.

The DFN was created in 1987 by the Development Fund of Namibia Act as a general development fund to stimulate rural economic growth by providing loans at interest rates of between two and 15 per cent.

CURIOUS NOTE ON EXPENDITURE According to the DFN's last audited financial statements (2002-2003), the Fund had improved, turning a negative income of N$6 309 420 in 2001 to 2002 into a retained income of N$12 976 111 the following year.

Total assets stood at N$210 827 million (2001-2002: N$198 272 million), while its current liabilities improved slightly to N$4 668 million (2001-2002: N$5 089 million).

However, its debtor book - a list of which was published with the last audited report) contains a sizable number of non-performing loans, as well as a curious note on "ultra vires [beyond legal power or authority] expenditure" of N$36 530 700 million that was apparently reimbursed.

No clear explanation could be found for this item in the previous year's audited financials.

The audit notes showed that of some N$90 163 106,63 lent to 96 SMEs and in development loans, only N$17 206 588,33 had been repaid by September 2003.

Of the 96 debtors, at least 30 appeared to have defaulted on their loans at the time of the last financial audit.

The outstanding amounts ranged from N$143 114,82 (GO Honsbein) to more than N$1 million (Northern Protein Pty Ltd).

Notable items include a whopping N$2,4 million lent to a certain Oshana Tiffany CC, a close corporation.

Other items of interest are the Pandu Hotel, which owes more than N$10 million, as well as would-be telecommunications competitor - T2 of former Telecom general manager Wilbert Ockhuizen, which owes the DFN a whopping N$4,784 million.

A possible candidate for a debt write-off are loans totalling N$701 620,63 owed by the Omaruru Dampf Baeckerei, owned by Omaruru CEO Johannes Xoagub.The bakery has not produced a single loaf of bread since then.

Xoagub has so far paid back N$10 000 on this loan.

"We will have to see what is practical and what is fair to recover" of the outstanding loans, Nuyoma said.

* John Grobler is a freelance journalist; 081 240 1587

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