Angula prefers Epangelo over Air Namibia

DEFENCE Minister Nahas Angula says government should allow loss-making State-owned enterprises to enter public–private partnership to make them progressive institutions that will contribute revenue to State coffers.

Angula made the remarks in the National Assembly on Wednesday, where he also asked the finance ministry to beef up its financial support to the State-owned minerals company Epangelo Mining, adding that government is not raking in enough tax from the mining sector.

The former prime minister advocated a system like the one entered into by the likes of Namdeb, MTC and Windhoek Country Club and Resort that have contributed millions to treasury.

Comments about failing parastatals and consistent funding from the State come a week after opposition parties criticised government for allocating N$9,58 billion towards State-owned enterprises, which is almost the same as the allocation for the development budget at N$9,52 billion.

Angula lobbied for increased funding of Epangelo Mining instead of pumping money into Air Namibia, an institution he says can explore, if allowed by government, to bring in private investors partners.

Finance Minister Saara Kuugongelwa Amadhila announced last week that Epangelo Mining will get N$49 million over the next three years while the national airline is set to receive N$1.8 billion over the same period.

“If you really want to participate in the economy, you must capitalise Epangelo mining, so that they can go into balanced partnerships,” Angula said.

Epangelo Mining will this year receive about N$11 million from Treasury while the national airline will receive N$472 million in the same financial year.

Epangelo Mining was reportedly considering selling its stake in various projects in exchange for cash to develop its exploration targets last year because of underfunding from the government. The parastatal reportedly required N$400 million to develop its exploration targets.

“In mining N$11 million is just to pay salaries. You cannot open a mine with N$11 million,” Angula said. “Whereas our foe, Air Namibia, does not even pay tax, I don’t want to mention the figures because you will collapse.”

Minister of Works and Transport Erkki Nghimtina defended the funding of Air Namibia, saying the institution contributes to the economic growth of the country by bringing tourists into the country.

Angula responded: “Why should Air Namibia be bailed out if it was making it?”

The defence minister also reminded fellow legislators to think out of the box by prioritising national projects to reform the economy. He further warned fellow MPs against spending for the sake of it.

“We have a budget of more than N$50 billion, to be spent in 12 months but at the end of it [year], the impact is a missed bag. What happens to this money? Are we just buying things or paying ourselves salaries,” he asked.

Meanwhile, Rally for Democracy and Progress (RDP) member Anton von Wietersheim suggested to the finance minister to allow the National Assembly to make input into the preparation and finalisation of the budget and not only have it rubber stamped in the law-making house. “Instead of having a Cabinet-approved budget being pushed through on the count of the majority of the ruling party and not the count of the perceived outcome,” he added.

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