Donor demands money back from Nepru

THE Swedish International Development Agency (Sida) has demanded that Nepru pay back N$1 million that Namibia’s pre-eminent economic research organisation has mismanaged over the past several years.

Sida threatened to take legal action against Nepru if the money was not repaid by May 12. Revelations of financial mismanagement showed that the institute owes more than N$5 million and could be declared bankrupt.Nepru was unable to pay workers’ salaries in April and the board of trustees indicated that the organisation could collapse unless it received a bailout from Government and its long-standing donor partners.The institute, which has often criticised and advised Government on how to handle taxpayers’ money, owes the Receiver of Revenue at least N$6 million in individual income tax and value-added tax (VAT).Donor money, workers’ pension and medical aid fund contributions, as well as their Pay As You Earn (PAYE) income-tax deductions, were diverted to cover daily operations without the knowledge of the trustees, but reportedly on the authorisation of Nepru Director Dirk Hansohm.Sida issued the demand in a statement posted on its website on April 26, following a forensic audit by PriceWaterhouseCoopers (PWC).”The Namibian Economic Policy Research Unit (Nepru), a non-governmental organisation, has mismanaged some Sida funds.Sida is now demanding that Nepru pay back SEK1,2 million,” said the statement.”Sida has supported Nepru since 2002 in developing an economic analysis model for assessing the socio-economic impact of political decisions on income distribution and poverty reduction in the country.Nepru has, however, used Sida funds to pay salaries, rent and other general operating costs, which [are] not covered by the agreement.”Dag Sundelin, the Deputy Head of the Swedish Embassy in Namibia, said: “Nepru’s actions are unacceptable… We have now asked Nepru to show, by 12 May at the latest, how the money will be repaid.”Sida said the audit report “reveals how the incorrect transactions took place and which people at Nepru authorised them.”Hansohm has declined to comment and referred queries to the board chairman, Dr Zedekia Ngavirue.Repeated attempts to reach Ngavirue for comment have proved futile.”It is now up to Nepru itself to find a solution for repaying the Swedish funds.We hope that this can be resolved in a way that allows the completion of a project that is important for Namibia,” said Sundelin.Nepru is facing demands for payment from several institutions, including its auditors PWC and the banks.* Tangeni Amupadhi is a journalist with Insight MagazineRevelations of financial mismanagement showed that the institute owes more than N$5 million and could be declared bankrupt.Nepru was unable to pay workers’ salaries in April and the board of trustees indicated that the organisation could collapse unless it received a bailout from Government and its long-standing donor partners.The institute, which has often criticised and advised Government on how to handle taxpayers’ money, owes the Receiver of Revenue at least N$6 million in individual income tax and value-added tax (VAT).Donor money, workers’ pension and medical aid fund contributions, as well as their Pay As You Earn (PAYE) income-tax deductions, were diverted to cover daily operations without the knowledge of the trustees, but reportedly on the authorisation of Nepru Director Dirk Hansohm.Sida issued the demand in a statement posted on its website on April 26, following a forensic audit by PriceWaterhouseCoopers (PWC).”The Namibian Economic Policy Research Unit (Nepru), a non-governmental organisation, has mismanaged some Sida funds.Sida is now demanding that Nepru pay back SEK1,2 million,” said the statement.”Sida has supported Nepru since 2002 in developing an economic analysis model for assessing the socio-economic impact of political decisions on income distribution and poverty reduction in the country.Nepru has, however, used Sida funds to pay salaries, rent and other general operating costs, which [are] not covered by the agreement.”Dag Sundelin, the Deputy Head of the Swedish Embassy in Namibia, said: “Nepru’s actions are unacceptable… We have now asked Nepru to show, by 12 May at the latest, how the money will be repaid.”Sida said the audit report “reveals how the incorrect transactions took place and which people at Nepru authorised them.”Hansohm has declined to comment and referred queries to the board chairman, Dr Zedekia Ngavirue.Repeated attempts to reach Ngavirue for comment have proved futile.”It is now up to Nepru itself to find a solution for repaying the Swedish funds.We hope that this can be resolved in a way that allows the completion of a project that is important for Namibia,” said Sundelin.Nepru is facing demands for payment from several institutions, including its auditors PWC and the banks.* Tangeni Amupadhi is a journalist with Insight Magazine