‘Greed’ stalls power project

A WIND-POWER project to provide electricity-starved Namibia with additional power supply has been stalled by alleged demands for millions of dollars in commission payments.

The project was about to be issued with a temporary one-year Power Purchase Agreement by the Electricity Control Board (ECB) and was on the brink of securing a power-supply agreement with NamPower. However, when disagreements between shareholders and other players emerged, the granting of the licence was put on hold and the company told to get its house in order.The project – in which Namibian, South African and other international investors are involved – was mooted early this year to sell electricity to NamPower at “favourable rates” through obtaining a Power Purchase Agreement (PPA) licence from the ECB.According to e-mail communications between some of the shareholders, which are in possession of The Namibian, the Namibia Industrial Mining Company (NIMC), which applied for the PPA, secured a US$300 million investment to set up two 50-Megawatt turbines for the generation of electricity.The commission payments demanded were reportedly as high as N$210 million, the e-mail communications revealed.NamPower’s Managing Director, Paulus Shilamba, confirmed to The Namibian that he had been in talks with NIMC.He said NamPower had agreed in principle to do business with the company and was in the process of approaching its board for endorsement.”We are interested in power supply at a good price,” Shilamba said.He said he was not interested in the internal politics of NIMC, and would buy electricity from any provider who met the requirements set for investors in the local electricity sector.According to Shilamba, NamPower had at no point contemplated investing in NIMC and was only interested in buying electricity from the company.One of the e-mail communications between the shareholders of NIMC mentions an investment of US$15 million that NamPower was expected to inject.BOMBSHELL In the midst of these developments, Pooven Moodley, who claims to be the majority shareholder in NIMC with a 25 per cent stake, this week dropped a bombshell over alleged exorbitant demands for a commission payment even before the company obtained a licence to do business.Moodley pointed a finger at a senior ECB officer and Paul Stephanus, whom he alleged had acted as a front man for the senior official of the electricity licensing and regulatory authority.The identity of the senior ECB official is known to The Namibian, but his name cannot be revealed at this stage, as he could not be reached for comment.Stephanus denies the claims.According to Moodley, Stephanus was not a shareholder, but was responsible for bringing on board more investors.Just as the temporary PPA was about to be issued, demands for facilitation and commission fees started.Moodley claims that at one stage he was approached by Stephanus for a N$100 000 commission payment for himself and for his “handler” at the ECB.Moodley, however, refused to pay the money and asked the two to be patient.This, according to Moodley, was allegedly not acceptable to Stephanus and the ECB official, who allegedly threatened that they would destroy Moodley and his business.ALLEGATIONS AND DENIALS When contacted for comment, Stephanus denied the allegations, including that he was fronting for someone in the electricity regulatory authority.”My function was to bring more investors on board.I am not even a shareholder,” Stephanus told The Namibian.Stephanus also charged that Moodley was not a shareholder in NIMC and was, like him, just there to raise investment funds.E-mail communications between some shareholders reveal that there was discomfort over the alleged demands for exorbitant introduction fees set at 20 per cent of the total investment of each funder.Mark Welthagen, a 15 per cent shareholder in NIMC, in an e-mail written to Moodley in April, expressed concern about the alleged unreasonable commission demands.He wrote that the demands were too high and amounted to “theft” of investor funds.”[N$] 210 million for an introduction is not business, it’s theft.Why do all these people want to get rich in one day for doing nothing! If we can have 5 per cent then its a deal, he [ECB man], he must cut in Paul, the other 5 per cent you, me and Gert,” Welthagen wrote.The specific e-mail concerned the alleged commission payment to the ECB senior official.Contacted for comment yesterday, Welthagen threatened this reporter with legal action.However, when disagreements between shareholders and other players emerged, the granting of the licence was put on hold and the company told to get its house in order.The project – in which Namibian, South African and other international investors are involved – was mooted early this year to sell electricity to NamPower at “favourable rates” through obtaining a Power Purchase Agreement (PPA) licence from the ECB.According to e-mail communications between some of the shareholders, which are in possession of The Namibian, the Namibia Industrial Mining Company (NIMC), which applied for the PPA, secured a US$300 million investment to set up two 50-Megawatt turbines for the generation of electricity.The commission payments demanded were reportedly as high as N$210 million, the e-mail communications revealed.NamPower’s Managing Director, Paulus Shilamba, confirmed to The Namibian that he had been in talks with NIMC.He said NamPower had agreed in principle to do business with the company and was in the process of approaching its board for endorsement.”We are interested in power supply at a good price,” Shilamba said.He said he was not interested in the internal politics of NIMC, and would buy electricity from any provider who met the requirements set for investors in the local electricity sector. According to Shilamba, NamPower had at no point contemplated investing in NIMC and was only interested in buying electricity from the company.One of the e-mail communications between the shareholders of NIMC mentions an investment of US$15 million that NamPower was expected to inject.BOMBSHELL In the midst of these developments, Pooven Moodley, who claims to be the majority shareholder in NIMC with a 25 per cent stake, this week dropped a bombshell over alleged exorbitant demands for a commission payment even before the company obtained a licence to do business.Moodley pointed a finger at a senior ECB officer and Paul Stephanus, whom he alleged had acted as a front man for the senior official of the electricity licensing and regulatory authority.The identity of the senior ECB official is known to The Namibian, but his name cannot be revealed at this stage, as he could not be reached for comment.Stephanus denies the claims.According to Moodley, Stephanus was not a shareholder, but was responsible for bringing on board more investors.Just as the temporary PPA was about to be issued, demands for facilitation and commission fees started.Moodley claims that at one stage he was approached by Stephanus for a N$100 000 commission payment for himself and for his “handler” at the ECB.Moodley, however, refused to pay the money and asked the two to be patient.This, according to Moodley, was allegedly not acceptable to Stephanus and the ECB official, who allegedly threatened that they would destroy Moodley and his business.ALLEGATIONS AND DENIALS When contacted for comment, Stephanus denied the allegations, including that he was fronting for someone in the electricity regulatory authority.”My function was to bring more investors on board.I am not even a shareholder,” Stephanus told The Namibian.Stephanus also charged that Moodley was not a shareholder in NIMC and was, like him, just there to raise investment funds.E-mail communications between some shareholders reveal that there was discomfort over the alleged demands for exorbitant introduction fees set at 20 per cent of the total investment of each funder.Mark Welthagen, a 15 per cent shareholder in NIMC, in an e-mail written to Moodley in April, expressed concern about the alleged unreasonable commission demands.He wrote that the demands were too high an
d amounted to “theft” of investor funds.”[N$] 210 million for an introduction is not business, it’s theft.Why do all these people want to get rich in one day for doing nothing! If we can have 5 per cent then its a deal, he [ECB man], he must cut in Paul, the other 5 per cent you, me and Gert,” Welthagen wrote.The specific e-mail concerned the alleged commission payment to the ECB senior official.Contacted for comment yesterday, Welthagen threatened this reporter with legal action.