*THIS ARTICLE HAS BEEN CHANGED TO REFLECT THE FACT THAT MICHAEL TANG HAS DISPUTED ITS CORRECTNESS. IT SHOULD BE READ IN CONJUNCTION WITH A FOLLOW UP ARTICLE TITLED THAT WAS PUBLISHED ON 1 DECEMBER 2014.
A MALAYSIAN businessman whose company sold a Namibian oil prospecting licence for N$220 million this year to Anglo-Dutch group Shell is being investigated for fraud in Singapore.
The businessman, Michael Tang, is the executive chairman and managing director of Polo Resources that has a another petroleum block under a different company name in Namibia.
Tang has links in Namibia through Polo Resources, which owns Signet Petroleum and Regalis Petroleum, although a top official from the company – Kudzayi Denenga – distanced Tang from the two companies.
Signet Petroleum, which left Namibia this year, sold 90% of its oil block stake to Anglo-Dutch group Shell for an undisclosed fee.
Although Shell did not divulge the amount it paid for the block, saying it was a confidential transaction, investor watch website – proactiveinvestors.co.uk – quoted Tang as saying the deal was worth N$220 million.
“Signet’s ongoing strategic alternatives process in respect of its multinational African asset base, which has attracted a number of interested parties including international oil majors, has delivered good initial results with the sale of Blocks 2913A/2914A in Namibia to Shell Exploration and Production confirming the value of Signet’s business strategy,” Tang was quoted as saying.
Apart from the transfer licence fee of N$30 000, the Namibian government did not receive a cent from the transaction in taxes and this was confirmed by the same report by proactiveinvestors.co.uk.
According to the report, Polo’s share of NS$220 million “is free of any tax and will be reinvested into the company to help unlock value in the existing portfolio as well as being available to acquire further undervalued and high potential assets in accordance with its investing policy”.
Polo Resources, which was registered in tax haven British Virgin Islands, had a 42% stake in Signet Petroleum. Tang’s interest in London-listed Polo Resources is carried by his shares in Malaysian company Mettiz Capital.
Polo Resources also has another subsidiary company, Regalis Petroleum, which owns oil exploration licence block 2813B worth 80% of the stake. Regalis Petroleum teamed up with local empowerment company Twakumua Mining and Exploration.
The monthly investigative magazine Insight said Twakumua’s directors include the late Otjozondjupa governor Rapama Kamehozu as well as businessman Brian Katjimune, Otjiwarongo mayor Otto Ipinge, lawyer Werner Shilunga and businessman Dominic Matjila – the son of retired DTA politician Andrew Matjila.
Regalis and Signet partnered with Namcor.
The petroleum commissioner, Immanuel Mulunga declined to comment on the alleged probe, saying he was not aware of it.
Polo Resources has a history of making millions from Namibian resources deals. In 2009, Polo Resources increased its stake in Australian mining group Extract Resources, taking its overall interest in the company to 10,32%.
The company sold its entire stake in Extract Resources eight months later. Its shares were valued at N$1,3 billion when sold to the French company, Areva.
Namibia is yet to strike oil in commercial quantities but it is being called the next big oil frontier, whose offshore geological formations are like those of Brazil, where the giant Lula field was discovered in 2006.
The scramble has, however, given birth to a market of spectators who buy oil blocks for N$15 000 to N$30 000 and sell them off a few years down the line at exorbitant profits.
Tang was among key businesspeople in Singapore questioned for their role that led to the collapse of three companies in October last year, and reportedly wiped out billions of dollars and left investors with heavy losses.
Singaporean financial website theedgemarkets.com reported last month that three companies previously owned by Tang are being investigated by the Singapore white collar police unit for the collapse of Liongold, Blumont and Asiasons.
One of the reports said the police want to establish the companies’ links, and some individuals are being interrogated while others have been arrested.
Denenga yesterday said Tang is not being investigated. “Tang is not involved in the investigations that are currently ongoing in Singapore in connection with the fall of three companies within a few days in 2013, as you have alleged,” Denenga said in a written response.
Denenga said the investigations will “have no bearing whatsoever on Polo’s interests in Namibia, if any, via Signet and/or Regalis”.
He, however, distanced Polo Resources from its sister offshore companies Signet and Regalis Petroleum, despite proof of connections via previous Polo announcements and its company website.
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
