Ex-mayor says power deal was legal; Ministry approval was not required

AN exclusive 15-year power supply deal between Keetmanshoop Municipality and Southern Electricity Company (SELCo) is legal, according to former Mayor Andries Biwa.

In an exclusive interview with The Namibian, Biwa said the power-supply deal was done on an agency basis, meaning no prior approval by the Minister of Regional Local Government and Housing was needed. “We acted legitimately in a moment of need,” Biwa said.His comments came as a result of a legal battle by the Keetmanshoop municipality to terminate the contract between it and SELCo.The local authority claims that the previous council, on which Biwa served as mayor, acted illegally.In an affidavit submitted to the High Court, Keetmanshoop CEO Jeremia Shanghadi said Ministerial approval had not been granted.Attempts to reach Shanghadi yesterday, including two visits to his home, three visits to his office and a phone call, proved futile.The electricity outsourcing in 2001 was prompted because the local council was unable to meet its obligations.”The total electricity grid was in shambles and we were unable to pay monthly expenses running at N$1,5 million,” Biwa said.”At that time we had only N$500 000 in our bank account and local financial institutions refused to grant us overdraft facilities,” he said.The line ministry was approached for financial assistance but would not assist the town and ordered an audit of municipal books, Biwa said.The Minister of Regional Housing, according to Biwa yesterday, said, “Don’t play big brother and come to me.”The selection of the company to operate and supply the town with electricity was voted on by the Local Council, Biwa said.”The vote between SELCo (a South African company) and the Premier Electric Company (a Namibian company) was tied 3-3 among the council members and I broke the tie in favour of SELCo.”He said his decision to vote in favour of SELCo was based on effectiveness and efficiency.In addition, he said, Premier Electric wanted a joint-venture agreement.That meant the assets belonging to the town would have had to be ceded to the company.That would have required Ministry approval, according to the former mayor.An agency-basis agreement does not require Ministry approval, he said.”Since the day SELCo took over I have had peaceful sleep,” Biwa said.”Before SELCo came in, the power supply frequently went off and I was inundated with calls from local business owners.”He said before 2001, whenever there was thunderstorm over Bethanie, 130 kilometres south of Keetmanshoop, the electricity of his town went off.”We acted legitimately in a moment of need,” Biwa said.His comments came as a result of a legal battle by the Keetmanshoop municipality to terminate the contract between it and SELCo.The local authority claims that the previous council, on which Biwa served as mayor, acted illegally.In an affidavit submitted to the High Court, Keetmanshoop CEO Jeremia Shanghadi said Ministerial approval had not been granted.Attempts to reach Shanghadi yesterday, including two visits to his home, three visits to his office and a phone call, proved futile.The electricity outsourcing in 2001 was prompted because the local council was unable to meet its obligations.”The total electricity grid was in shambles and we were unable to pay monthly expenses running at N$1,5 million,” Biwa said.”At that time we had only N$500 000 in our bank account and local financial institutions refused to grant us overdraft facilities,” he said.The line ministry was approached for financial assistance but would not assist the town and ordered an audit of municipal books, Biwa said.The Minister of Regional Housing, according to Biwa yesterday, said, “Don’t play big brother and come to me.”The selection of the company to operate and supply the town with electricity was voted on by the Local Council, Biwa said.”The vote between SELCo (a South African company) and the Premier Electric Company (a Namibian company) was tied 3-3 among the council members and I broke the tie in favour of SELCo.”He said his decision to vote in favour of SELCo was based on effectiveness and efficiency.In addition, he said, Premier Electric wanted a joint-venture agreement.That meant the assets belonging to the town would have had to be ceded to the company.That would have required Ministry approval, according to the former mayor.An agency-basis agreement does not require Ministry approval, he said.”Since the day SELCo took over I have had peaceful sleep,” Biwa said.”Before SELCo came in, the power supply frequently went off and I was inundated with calls from local business owners.”He said before 2001, whenever there was thunderstorm over Bethanie, 130 kilometres south of Keetmanshoop, the electricity of his town went off.