Kapia takes leave

SWAPO Party Youth League Secretary Paulus Kapia, who has emerged as one of the key figures in an investment deal that has left the Social Security Commission in danger of losing N$30 million, has been given “leave of absence” from his position as Deputy Minister of Works, Transport and Communication.

Kapia told The Namibian on enquiry on Friday that he had asked the President for permission to take leave. It was “just normal leave” for 25 days, starting from Friday, Kapia said.He said he had asked for leave so that he could be free to deal with a High Court enquiry into a N$30 million investment that the SSC placed with Avid Investment Corporation, of which Kapia had been a director until March 20.The enquiry is set to start today.Although Kapia denied on Friday that he had been suspended from his post – saying he had neither received a letter nor verbal notification of a suspension – his having taken leave to deal with the enquiry might yet indicate that the fall-out from the SSC’s investment has started to affect his political career.The Office of the President, in a statement signed by the Minister of Presidential Affairs, Dr Albert Kawana, on Friday announced that the President had granted Kapia leave of absence at his own request.Kawana also stated, without elaborating: “It is a FIRM commitment of the Office of the President that the rule of law and democracy in our country should be RESPECTED.In this regard, the Office of the President will strictly adhere to the letter and spirit of the Namibian Constitution and other laws of the Republic.”THE AVID DEAL The N$30 million had been supposed to be repaid to the SSC, with interest, in the last week of May.When this was not done, and indications surfaced that the money might not have been placed with a trusted bank in South Africa, as Avid had ensured the SSC would be done, the SSC approached the High Court for an order for the provisional liquidation of Avid about two weeks ago.Acting Judge Raymond Heathcote also made an additional order, directing that the court would conduct an enquiry in terms of the Companies Act to find out what had happened to the N$30 million – public funds that should have been for the ultimate benefit of needy and vulnerable people in Namibia.Kapia and three other past and present directors of Avid subpoenaed to answer questions at the enquiry, initially tried to stall the proceedings by claiming that their constitutional right not to incriminate themselves would be violated if they were to be required to provide information at the enquiry.Acting Judge Heathcote dismissed that attempt to sidestep the enquiry on Monday last week, when he refused to postpone the pending proceedings beyond today.When it asked the High Court for an order provisionally winding up Avid, the SSC claimed that Avid had been “applying pressure from higher political authority” with the aim of securing the SSC investment, and that it had been pointed out to the SSC that Avid’s major shareholder was the Swapo Party Youth League (SPYL), “which apparently holds 80% of the shares in (Avid)”.SPYL BACKS KAPIA In a statement issued by the Youth League, through its Secretary for Information, Publicity and Mobilisation, Elijah Ngurare, on Thursday, it not only rallied to the defence of Kapia, but also appeared to have taken umbrage at media reports on the Youth League’s claimed shareholding in Avid.Ngurare claimed events over the past two weeks “have demonstrated beyond any reasonable doubt that the court proceedings have been politicised”.He claimed that a “trial in the media” had been directed against the SPYL and its Secretary, as opposed to the SSC and Avid Investment Corporation.According to Ngurare, the Youth League’s Secretary is responsible for the establishment and development of Youth League enterprises and ventures.”As a youth wing, we uphold the principles of collective honesty, integrity and accountability,” Ngurare stated.”It is our considered view that the ideals of our movement are a treasure to be preserved for this generation and the next and more important than the interests of individuals.The SPYL Secretary fully subscribes to this view and as such the white media cannot be his judge or his prosecutor but the conscience of his conviction is what places him above his opponents.”Kapia was still a director of Avid at the time the agreement to entrust N$30 million to Avid was reached with the SSC.According to the SSC, he was directly involved in talks over the investment.The SSC has informed the court that at a meeting on January 24, Kapia also warned the SSC that penalties would be charged if the N$30 million were not transferred immediately to Avid.The money was transferred on January 26 – although the transfer was authorised by the SSC’s Chief Executive Officer, Tuli Hiveluah, only the next day.A CRUCIAL DECISION Either two days before, or less than two weeks after the transfer, depending on which document before the court is to be believed, Avid’s board of directors took a decision that from that time onwards, Kapia and Avid’s Managing Director, Inez /Gâses, were authorised to act on behalf of Avid in all matters regarding the SSC investment.As a result, Kapia and /Gâses could especially expect to be required to provide answers at the High Court enquiry on the investment.At the time that they were designated as Avid’s key representatives with respect to the SSC investment, the company’s board appeared to consist of Kapia, /Gâses, and Sharon Blaauw, the wife of Ralph Blaauw, who was then still a Swapo MP in the National Assembly and has since been appointed as Acting Secretary General of the National Youth Council.The company’s secretary, which by law must hold records of its shareholding structure, was still not able to provide these on Friday.The secretary, Acsec Professional Services CC, claimed on enquiry that Avid’s shareholding structure had been drawn up some two weeks ago after some delay that was caused when shareholders could not agree on the respective shareholding of each.Share certificates have now been made out, but the shareholders first have to sign these and return it to the company secretary before Avid’s shareholders’ register could be completed, and she was still waiting for these documents to be returned, Acsec’s Nadiema Eberenz said.It was “just normal leave” for 25 days, starting from Friday, Kapia said.He said he had asked for leave so that he could be free to deal with a High Court enquiry into a N$30 million investment that the SSC placed with Avid Investment Corporation, of which Kapia had been a director until March 20.The enquiry is set to start today.Although Kapia denied on Friday that he had been suspended from his post – saying he had neither received a letter nor verbal notification of a suspension – his having taken leave to deal with the enquiry might yet indicate that the fall-out from the SSC’s investment has started to affect his political career.The Office of the President, in a statement signed by the Minister of Presidential Affairs, Dr Albert Kawana, on Friday announced that the President had granted Kapia leave of absence at his own request. Kawana also stated, without elaborating: “It is a FIRM commitment of the Office of the President that the rule of law and democracy in our country should be RESPECTED.In this regard, the Office of the President will strictly adhere to the letter and spirit of the Namibian Constitution and other laws of the Republic.”THE AVID DEAL The N$30 million had been supposed to be repaid to the SSC, with interest, in the last week of May.When this was not done, and indications surfaced that the money might not have been placed with a trusted bank in South Africa, as Avid had ensured the SSC would be done, the SSC approached the High Court for an order for the provisional liquidation of Avid about two weeks ago.Acting Judge Raymond Heathcote also made an additional order, directing that the court would conduct an enquiry in terms of the Companies Act to find out what had happened to the N$30 million – public funds that should have been for the ultimate benefit of needy and vulnerable people in Namibia.Kapia and three other past and present directors of Avid subpoenaed to answer questions at the enquiry, initially tried to stall the proceedings by claiming that their constitutional right not to incriminate themselves would be violated if they were to be required to provide information at the enquiry.Acting Judge Heathcote dismissed that attempt to sidestep the enquiry on Monday last week, when he refused to postpone the pending proceedings beyond today.When it asked the High Court for an order provisionally winding up Avid, the SSC claimed that Avid had been “applying pressure from higher political authority” with the aim of securing the SSC investment, and that it had been pointed out to the SSC that Avid’s major shareholder was the Swapo Party Youth League (SPYL), “which apparently holds 80% of the shares in (Avid)”.SPYL BACKS KAPIA In a statement issued by the Youth League, through its Secretary for Information, Publicity and Mobilisation, Elijah Ngurare, on Thursday, it not only rallied to the defence of Kapia, but also appeared to have taken umbrage at media reports on the Youth League’s claimed shareholding in Avid.Ngurare claimed events over the past two weeks “have demonstrated beyond any reasonable doubt that the court proceedings have been politicised”.He claimed that a “trial in the media” had been directed against the SPYL and its Secretary, as opposed to the SSC and Avid Investment Corporation.According to Ngurare, the Youth League’s Secretary is responsible for the establishment and development of Youth League enterprises and ventures.”As a youth wing, we uphold the principles of collective honesty, integrity and accountability,” Ngurare stated.”It is our considered view that the ideals of our movement are a treasure to be preserved for this generation and the next and more important than the interests of individuals.The SPYL Secretary fully subscribes to this view and as such the white media cannot be his judge or his prosecutor but the conscience of his conviction is what places him above his opponents.”Kapia was still a director of Avid at the time the agreement to entrust N$30 million to Avid was reached with the SSC.According to the SSC, he was directly involved in talks over the investment.The SSC has informed the court that at a meeting on January 24, Kapia also warned the SSC that penalties would be charged if the N$30 million were not transferred immediately to Avid.The money was transferred on January 26 – although the transfer was authorised by the SSC’s Chief Executive Officer, Tuli Hiveluah, only the next day.A CRUCIAL DECISION Either two days before, or less than two weeks after the transfer, depending on which document before the court is to be believed, Avid’s board of directors took a decision that from that time onwards, Kapia and Avid’s Managing Director, Inez /Gâses, were authorised to act on behalf of Avid in all matters regarding the SSC investment.As a result, Kapia and /Gâses could especially expect to be required to provide answers at the High Court enquiry on the investment.At the time that they were designated as Avid’s key representatives with respect to the SSC investment, the company’s board appeared to consist of Kapia, /Gâses, and Sharon Blaauw, the wife of Ralph Blaauw, who was then still a Swapo MP in the National Assembly and has since been appointed as Acting Secretary General of the National Youth Council.The company’s secretary, which by law must hold records of its shareholding structure, was still not able to provide these on Friday.The secretary, Acsec Professional Services CC, claimed on enquiry that Avid’s shareholding structure had been drawn up some two weeks ago after some delay that was caused when shareholders could not agree on the respective shareholding of each.Share certificates have now been made out, but the shareholders first have to sign these and return it to the company secretary before Avid’s shareholders’ register could be completed, and she was still waiting for these documents to be returned, Acsec’s Nadiema Eberenz said.