DBC funds stashed in individuals’ accounts

TOP managers of M&N, a construction company jointly owned by the Development Brigade Corporation (DBC) and the Malaysian Construction Ventures Overseas (MCVO), kept the firm’s funds in private bank accounts without the DBC’s knowledge.

The Presidential Commission of Inquiry into the DBC and Amcom, being held in Windhoek, yesterday heard how Malaysians assigned to M&N deposited proceeds from the rental of 168 DBC houses at Grootfontein in their personal accounts – a practice which Namibians later followed. “It started in 1996.The money was deposited in the bank account of the general manager responsible for finance and was then transferred to the company account later,” confirmed Francis Sibea, a former GM responsible for Administration and Operations.A stunned Commission Chairperson, Petrus Unengu, asked: “Who was this lucky general manager? [in whose account the company’s money was deposited]” Sibea responded:”He was Mr Gan Mon Meng [a Malaysian national] …when he left, the money started to go into my personal account.”At this, the Commission’s legal counsel Eldorette Harmse interjected:”My goodness why was this done? …This was not your money, it was DBC money.”Sibea claimed that the company did not have a bank account at Grootfontein.However, after intense grilling by the Commission he conceded that the company management never made any effort to open such an account.Sibea acknowledged that the decision to keep the funds in personal accounts was taken by “M&N management”, himself and Meng.”Isn’t that highly irregular for a general manager to deposit company money in his private bank account?” commissioner Brian Nalisa asked.”The act itself might be irregular, but if the money could be traced where it went, then I don’t think it’s that much of an issue,” the witness replied.But Harmse put it to him that after he had taken over that “illegal practice” from 1999 to 2000, close to N$60 000 of DBC money deposited in his private account had not been accounted for.The former GM claimed that he withdrew the money and used it to pay the salaries of M&N employees.When commissioner Bro-Matthew Shinguadja asked whether he [Sibea] also paid over to the company the interest earned on the money while in his account, a visibly shaken Sibea remained silent for a while before declaring:”Well then, I could also charge interest for the use of my account.”It was further alleged that Sibea bought fuel, vegetables, fruit and a host of other personal items with DBC money that was kept in his private bank account.The witness maintained that the expenditure was incurred on official business because after the Malaysians pulled out of M&N, the company experienced serious financial problems, hence he travelled around looking for markets.”It was a matter of survival.As the head of M&N I had to stand and look for other avenues so that we could survive,” he said.But the commissioners were not impressed.”A matter of survival for who? You personally?” retorted Nalisa.Sibea took strong exception to the question.Unengu reminded him that he did not need to be “emotional or aggressive” but should only answer the questions “This was DBC money, but not your own … we have to know how it was used in that manner.”The witness was then informed that the Commission still needed to question him on a number of issues and that he would need appear again on a date still to be decided.The Commission then adjourned its hearings until Friday next week, when former DBC GM Simon Shikangala is expected to appear.”It started in 1996.The money was deposited in the bank account of the general manager responsible for finance and was then transferred to the company account later,” confirmed Francis Sibea, a former GM responsible for Administration and Operations.A stunned Commission Chairperson, Petrus Unengu, asked: “Who was this lucky general manager? [in whose account the company’s money was deposited]” Sibea responded:”He was Mr Gan Mon Meng [a Malaysian national] …when he left, the money started to go into my personal account.”At this, the Commission’s legal counsel Eldorette Harmse interjected:”My goodness why was this done? …This was not your money, it was DBC money.”Sibea claimed that the company did not have a bank account at Grootfontein.However, after intense grilling by the Commission he conceded that the company management never made any effort to open such an account.Sibea acknowledged that the decision to keep the funds in personal accounts was taken by “M&N management”, himself and Meng.”Isn’t that highly irregular for a general manager to deposit company money in his private bank account?” commissioner Brian Nalisa asked.”The act itself might be irregular, but if the money could be traced where it went, then I don’t think it’s that much of an issue,” the witness replied.But Harmse put it to him that after he had taken over that “illegal practice” from 1999 to 2000, close to N$60 000 of DBC money deposited in his private account had not been accounted for.The former GM claimed that he withdrew the money and used it to pay the salaries of M&N employees.When commissioner Bro-Matthew Shinguadja asked whether he [Sibea] also paid over to the company the interest earned on the money while in his account, a visibly shaken Sibea remained silent for a while before declaring:”Well then, I could also charge interest for the use of my account.”It was further alleged that Sibea bought fuel, vegetables, fruit and a host of other personal items with DBC money that was kept in his private bank account.The witness maintained that the expenditure was incurred on official business because after the Malaysians pulled out of M&N, the company experienced serious financial problems, hence he travelled around looking for markets.”It was a matter of survival.As the head of M&N I had to stand and look for other avenues so that we could survive,” he said.But the commissioners were not impressed.”A matter of survival for who? You personally?” retorted Nalisa.Sibea took strong exception to the question.Unengu reminded him that he did not need to be “emotional or aggressive” but should only answer the questions “This was DBC money, but not your own … we have to know how it was used in that manner.”The witness was then informed that the Commission still needed to question him on a number of issues and that he would need appear again on a date still to be decided.The Commission then adjourned its hearings until Friday next week, when former DBC GM Simon Shikangala is expected to appear.