Investors put the squeeze on ODC

THE screws are tightening on the Offshore Development Company (ODC) to pay back millions of dollars it invested on behalf of other companies with the shady Great Triangle Investments. The ODC has until Wednesday to respond to a letter of demand to repay N$55 million to the Namibia Development Corporation (NDC).

The Namibian understands that the ODC has already failed to respond to a deadline of two weeks ago to repay more than N$7 million belonging to information technology company Silnam. The ODC, set up by Government to promote investment in export processing zones, invested N$100 million with Great Triangle from 2003 onwards.Attempts so far to trace the missing millions have drawn a blank.On Friday, Silnam General Manager Dasa Padachi said his company had not yet considered legal action against the ODC.He said at present they were only engaged in “friendly” negotiations to recover the remainder of the N$10 million it entrusted to the ODC during 2003-04 to be invested.”We are in contact with them.We have asked them to give an indication of when they will be able to repay our money,” Padachi said.Failure to act on demands to repay the money it invested on behalf of the companies could result in creditors taking steps to liquidate the ODC.CLOSE CONNECTIONS Padachi confirmed to The Namibian that between 2003 and 2004 Silnam invested N$10 million with ODC at an interest rate of 18 per cent.It received only one repayment on its investment – around N$2,5 million.”The ODC approached us.It was a promising rate of return,” said Padachi, when asked why his company had decided to invest with the ODC.The ties between Silnam and the ODC run deeper than the investment arrangement.The ODC holds 26 per cent of shares in Silnam.Three of Silnam’s directors are the ODC’s three top managers – General Manager for Industrial Investment Philip Namundjebo, Special Projects Manager Nghidinua Daniel and Finance Manager Mabos Ortmann.Silnam is an offshoot of Sil (State Informatics Ltd), a Mauritian government-owned information technology company.Sil Mauritius is the majority shareholder in Silnam with 48 per cent, while Namibian company African Integrated Management Systems (AIMS) holds 26 per cent.AIMS General Manager Reinhold Xoagub is also a Silnam director.Silnam holds a multi-million dollar contract with Government to implement an integrated financial management system for its ministries.Padachi said Silnam would await the arrival of its three Mauritian-based directors in the coming days to discuss what steps to take to get its money back.NDC WEIGHS OPTIONS NDC board Chairman John Nekwaya confirmed on Friday that the NDC board would decide at its next meeting, early next month, what further action to take against the ODC, if it does not respond to the demand to repay its money.Nekwaya said the NDC had not yet received any response to its demand letter from the ODC.”We [the board] will see what action to take and be advised by our lawyers on what legal steps to follow,” said Nekwaya.Daniel, who is also acting CEO of the ODC, confirmed to The Namibian that the NDC had demanded its money from the ODC, but would not say if the company faced legal demands from any other party whose money was invested with Great Triangle.”I would not want to comment on that [whether any other company had demanded its money back].If there are any such parties who want to take legal action, they can approach the ODC and the matter will be dealt with,” said Daniel.”The money is not with the ODC.That’s why we appointed lawyers to handle the matter.They are still busy investigating.The investigation is now at an advanced stage,” he maintained.Daniel said he could not provide information on the kind of progress the investigation might have made, as “for the sake of credibility” he was not involved.TWO SUSPENDED Last week, the NDC suspended its Chief Executive Officer, Abdool Aboobakar, (whom the ODC also suspended as its head some weeks ago) and NDC Finance Manager Addis Faul pending disciplinary inquiries on gross negligence charges.The pair agreed to the transfer of the NDC’s funds to the ODC for investment without permission from the board.However Nekwaya said an investigation by its lawyers, Engling and Stritter, did not find any proof that the two men might have gained personally from the transactions.”There’s an investment policy in place.They didn’t follow the procedures.It was gross negligence on their part,” claimed Nekwaya.Great Triangle Investments is a company registered in Botswana but with South African Phillip Fourie as its principal director.The ODC, set up by Government to promote investment in export processing zones, invested N$100 million with Great Triangle from 2003 onwards.Attempts so far to trace the missing millions have drawn a blank.On Friday, Silnam General Manager Dasa Padachi said his company had not yet considered legal action against the ODC.He said at present they were only engaged in “friendly” negotiations to recover the remainder of the N$10 million it entrusted to the ODC during 2003-04 to be invested.”We are in contact with them.We have asked them to give an indication of when they will be able to repay our money,” Padachi said.Failure to act on demands to repay the money it invested on behalf of the companies could result in creditors taking steps to liquidate the ODC.CLOSE CONNECTIONS Padachi confirmed to The Namibian that between 2003 and 2004 Silnam invested N$10 million with ODC at an interest rate of 18 per cent.It received only one repayment on its investment – around N$2,5 million.”The ODC approached us.It was a promising rate of return,” said Padachi, when asked why his company had decided to invest with the ODC.The ties between Silnam and the ODC run deeper than the investment arrangement.The ODC holds 26 per cent of shares in Silnam.Three of Silnam’s directors are the ODC’s three top managers – General Manager for Industrial Investment Philip Namundjebo, Special Projects Manager Nghidinua Daniel and Finance Manager Mabos Ortmann.Silnam is an offshoot of Sil (State Informatics Ltd), a Mauritian government-owned information technology company. Sil Mauritius is the majority shareholder in Silnam with 48 per cent, while Namibian company African Integrated Management Systems (AIMS) holds 26 per cent.AIMS General Manager Reinhold Xoagub is also a Silnam director.Silnam holds a multi-million dollar contract with Government to implement an integrated financial management system for its ministries.Padachi said Silnam would await the arrival of its three Mauritian-based directors in the coming days to discuss what steps to take to get its money back.NDC WEIGHS OPTIONS NDC board Chairman John Nekwaya confirmed on Friday that the NDC board would decide at its next meeting, early next month, what further action to take against the ODC, if it does not respond to the demand to repay its money.Nekwaya said the NDC had not yet received any response to its demand letter from the ODC.”We [the board] will see what action to take and be advised by our lawyers on what legal steps to follow,” said Nekwaya.Daniel, who is also acting CEO of the ODC, confirmed to The Namibian that the NDC had demanded its money from the ODC, but would not say if the company faced legal demands from any other party whose money was invested with Great Triangle.”I would not want to comment on that [whether any other company had demanded its money back].If there are any such parties who want to take legal action, they can approach the ODC and the matter will be dealt with,” said Daniel.”The money is not with the ODC.That’s why we appointed lawyers to handle the matter.They are still busy investigating.The investigation is now at an advanced stage,” he maintained.Daniel said he could not provide information on the kind of progress the investigation might have made, as “for the sake of credibility” he was not involved.TWO SUSPENDED Last week, the NDC suspended its Chief Executive Officer, Abdool Aboobakar, (whom the ODC also suspended as its head some weeks ago) and NDC Finance Manager Addis Faul pending disciplinary inquiries on gross negligence charges.The pair agreed to the transfer of the NDC’s funds to the ODC for investment without permission from the board.However Nekwaya said an investigation by its lawyers, Engling and Stritter, did not find any proof that the two men might have gained personally from the transactions.”There’s an investment policy in place.They didn’t follow the procedures.It was gross negligence on their part,” claimed Nekwaya.Great Triangle Investments is a company registered in Botswana but with South African Phillip Fourie as its principal director.