Endgame draws closer for the NDC

THE Namibian Development Corporation (NDC) is about six months away from shutting down completely.

Permanent Secretary in the Ministry of Trade and Industry, Andrew Ndishishi, confirmed to The Namibian last week that the dissolution process had reached an advanced stage. The Auditor General’s report for 2003-04, which was recently presented to Parliament, showed a drop in company profits on ordinary activities to N$10,1 million, down from N$37,8 million in 2003.The audit report noted that during the year under review, the NDC management made serious attempts to either recover or stop the loss of any further money and establish better control over the assets of the corporation.Previous audit reports highlighted serious concerns about the internal control over the corporation’s assets in view of the huge loans being advanced.The dissolution of the NDC follows a Government decision in favour of the Development Bank, which opened last year.In December, Cabinet directed that all NDC property and shares be transferred to Government institutions and that it start retrenching its staff.It was also expected to transfer at least N$20 million from its cash reserves to the Development Bank.Ndishishi said all industrial projects of the NDC and its staff had already been transferred to the Ministry of Trade and Industry.The Ministry of Agriculture, Water and Forestry, he said, was currently working on strategies to absorb the agronomic projects.Ndishishi said this process was a “little complicated”, as some of the infrastructure was situated in communal areas and their transfer involved complex legal procedures.At the time of the last financial audit, the NDC still employed around 200 staff.Ndishishi said many staff had already resigned, while others were being transferred to Government institutions that had taken over the NDC projects.He said retrenchments would be minimal.The most recent audit shows that the NDC recorded reduced profits both from the sale of grapes (N$2,1 million) and N$4,5 million from livestock.In 2003, these sales earned the corporation N$3,1 million and N$6,1 million respectively.During 2003-04, the corporation disposed of N$5,6 million in property and equipment, N$2 million less than the previous year.”Management has made an admirable attempt to continue in the same manner laid down in the previous year, of controlling cost, hence stabilising growth and keeping a positive frame of mind in the corporation, regardless of the current uncertainties surrounding the future of the corporation,” says the report.NDC management came under fire from the Presidential Inquiry into the affairs of the now defunct DBC and Amcom in November, for the way in which it handled the alienation of Amcom assets.They were said to have sold themselves short in several of the sales negotiations.The Auditor General’s report for 2003-04, which was recently presented to Parliament, showed a drop in company profits on ordinary activities to N$10,1 million, down from N$37,8 million in 2003.The audit report noted that during the year under review, the NDC management made serious attempts to either recover or stop the loss of any further money and establish better control over the assets of the corporation.Previous audit reports highlighted serious concerns about the internal control over the corporation’s assets in view of the huge loans being advanced.The dissolution of the NDC follows a Government decision in favour of the Development Bank, which opened last year.In December, Cabinet directed that all NDC property and shares be transferred to Government institutions and that it start retrenching its staff. It was also expected to transfer at least N$20 million from its cash reserves to the Development Bank.Ndishishi said all industrial projects of the NDC and its staff had already been transferred to the Ministry of Trade and Industry.The Ministry of Agriculture, Water and Forestry, he said, was currently working on strategies to absorb the agronomic projects.Ndishishi said this process was a “little complicated”, as some of the infrastructure was situated in communal areas and their transfer involved complex legal procedures.At the time of the last financial audit, the NDC still employed around 200 staff.Ndishishi said many staff had already resigned, while others were being transferred to Government institutions that had taken over the NDC projects.He said retrenchments would be minimal.The most recent audit shows that the NDC recorded reduced profits both from the sale of grapes (N$2,1 million) and N$4,5 million from livestock.In 2003, these sales earned the corporation N$3,1 million and N$6,1 million respectively.During 2003-04, the corporation disposed of N$5,6 million in property and equipment, N$2 million less than the previous year.”Management has made an admirable attempt to continue in the same manner laid down in the previous year, of controlling cost, hence stabilising growth and keeping a positive frame of mind in the corporation, regardless of the current uncertainties surrounding the future of the corporation,” says the report.NDC management came under fire from the Presidential Inquiry into the affairs of the now defunct DBC and Amcom in November, for the way in which it handled the alienation of Amcom assets.They were said to have sold themselves short in several of the sales negotiations.