CABINET has directed mines and energy minister Tom Alweendo to investigate several irregularities around the construction of the N$5,5 billion national oil storage facility at Walvis Bay.
This follows an audit conducted by PricewatershouseCoopers (PWC), which found indiscretions around the tank’s height and the size of the land on which it is built.
Cabinet’s decision to investigate irregularities around the facility was announced by information and communication technology minister Stanley Simataa on Thursday in Windhoek.
Simataa said Alweendo was directed by Cabinet to submit a progress report on the implementation of the project and commission a technical evaluation to gauge the accuracy of the tank’s height and land size, amongst others.
“The land in question is an extension of land acquired by the contractor without the knowledge of the government,” he noted.
He added that Cabinet directed the investigation, depending on the process and manner in which the mismatch between the tank height and land on which it was constructed occurred.
The investigation would then determine whether it was due to negligence of the contractor employer’s representative or other parties involved.
According to Simataa, the acquisition of additional land could have financial implications on government.
Simataa also indicated that Cabinet directed the ministry to do an investigation on ascertaining if there was a breach of confidential information potentially prior to the construction, leading to the acquisition of land by the contractor.
The oil facility overlooks the Atlantic Ocean and is strategically located five kilometres from the port town of Walvis Bay, between the naval base and Bird Island.
It will store 70 million litres of petroleum products such as petrol, diesel, paraffin and others.
– Nampa
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