Lid lifted on DBC report

A 2004 PRESIDENTIAL Commission of Enquiry into the multi-million dollar collapse of a public institution appears to propose selective penalties for some of the key figures involved in the project.

In addition, nothing has yet come of a proposal in the Commission’s report that a criminal investigation be launched, “as a matter of urgency”, into the dealings of an official who allegedly siphoned off public funds at will. Alleged irregularities in the running of the now defunct Development Brigade (DBC) and Amalgamated Commercial Holdings (Amcom) saw N$240 million in taxpayers’ money go down the drain.The reports of the Commission have not yet seen the light of day despite a promise in December 2004 by the then Head of State, Sam Nujoma, that they would be made public when the commission presented him with the report.Eddie Champion, who paid about N$40 000 for one of Nujoma’s hunting expeditions from November 3 to 11 2000 in the Karas Region, allegedly siphoned hundreds of thousands of dollars from the company through fraudulent claims and other unauthorised expenditure.Champion was the former general manager of Patriotic Construction Company (PCC) – a subsidiary of the DBC.When Nujoma appointed the DBC-Amcom commission of inquiry, the move was viewed in certain quarters as a witch-hunt aimed at tarnishing the image of former Trade Minister Hidipo Hamutenya.Both organisations fell under him.CONFLICT OF INTEREST Hamutenya comes under the kosh, as does former Trade Permanent Secretary Andrew Ndishishi.While the Commission proposed that Hamutenya be investigated for allegedly “having significantly contributed to the collapse of Amcom and DBC” through “over managing”, Ndishishi is let off with a reprimand.Ndishishi awarded a N$1,5 million loan to Kavango Empowerment in which he had 3,64 per cent shares without declaring his interest, “which is a conflict of interest”.”Such conduct by Mr Ndishishi constitutes a serious abuse of public funds,” the report says.In the case of Champion, the commission recommended that the Inspector General of the Namibian Police be directed to finalise the criminal investigations on Champion “as a matter of urgency”.That was way in December 2004 – more than three years ago.The businesses and projects of the DBC were set up to train ex-combatants, but instead became conduits of self-enrichment and bottomless pits for public funds, the commission found.Despite the fact that, in the short term, the DBC helped to contain what could have become a social and political turmoil caused by frustrated ex-combatants, those charged with the leadership and management of DBC failed to carry out their mandate, according to the Commission.Through mismanagement, the ex-combatants, who were targeted beneficiaries, became victims of greed, selfishness, nepotism and corruption, according to the unpublished report of the commission.Although the commission maintained in its report that it was not on a witch-hunt in Hamutenya’s case, it blamed him for a lack of demarcation of responsibilities in the running of the two institutions’ affairs.The findings claim that had Hamutenya kept to Cabinet decisions on the two, “most of the problems encountered could have been avoided”.According to the report, Hamutenya did things “single-handedly” and failed to inform the Cabinet on time.”The commission concludes that the then Minister of Trade and Industry (Hamutenya) must bear full responsibility of interfering in the running of Amcom through his over involvement in management and operational issues and overstepping his authority and level of responsibility and accountability,” the report charges.According to it, Hamutenya had hired and fired boards without Cabinet approval, appointed and dismissed the Managing Director and had allegedly directed the Amcom management to sell off its assets to pay debts.CHAMPION SINS Findings against Champion included the PCC apparently buying his wife a cellphone and paying for her private calls.PCC vehicles were sold and the money pocketed by him, ‘night out’ claims made without supporting documents and the company rented two fully furnished houses – one in Windhoek and one in Okahandja – for Champion while he was receiving a monthly housing allowance of N$18 000.The company allegedly also paid for Champion’s groceries, DsTV payments, entertainment chairs, building materials, computers, furniture and toiletries,as well as cigarettes under the so-called ’employee welfare’.He would also pay petrol with the company’s fuel card but keep receipts to claim the costs as if he had paid for them out of his pocket.The former General Manager also allegedly hired out a bulldozer to PCC at a rate of N$11 000 a month while he contracted his son to compile an updated fixed assets register for the company at a cost of N$10 000.He also allegedly gave some clean-up work on the Sossusvlei road project to his sister while he used PCC employees to work on his farm for varying periods between 1999 and 2002.Another finding was that Champion bought various items for his brother-in-law at a public auction with the company’s money.That was in addition to several of his own purchases with company money and the PCC paying for the repair cost of his vehicles.According to his contract, Champion was entitled to a bonus should the company’s profits exceed N$1 million.In the financial year ending March 2000, Champion allegedly said the PCC recorded a net profit after tax of N$3 137 675 and claimed N$181 963.90.A subsequent forensic audit revealed that the company actually made a profit of N$432 369 only and that he had allegedly taken money he was not entitled to.The commission also established that Champion “had a habit” of hiring out his personal vehicles to PCC on the pretext that the company had a serious shortage of transport while also selling his private items to the company.He invited Nujoma to his farm for a hunting trip and “misled” the PCC staff, telling them that it was an official visit.He claimed for all the expenses.Alleged irregularities in the running of the now defunct Development Brigade (DBC) and Amalgamated Commercial Holdings (Amcom) saw N$240 million in taxpayers’ money go down the drain.The reports of the Commission have not yet seen the light of day despite a promise in December 2004 by the then Head of State, Sam Nujoma, that they would be made public when the commission presented him with the report. Eddie Champion, who paid about N$40 000 for one of Nujoma’s hunting expeditions from November 3 to 11 2000 in the Karas Region, allegedly siphoned hundreds of thousands of dollars from the company through fraudulent claims and other unauthorised expenditure.Champion was the former general manager of Patriotic Construction Company (PCC) – a subsidiary of the DBC.When Nujoma appointed the DBC-Amcom commission of inquiry, the move was viewed in certain quarters as a witch-hunt aimed at tarnishing the image of former Trade Minister Hidipo Hamutenya.Both organisations fell under him.CONFLICT OF INTEREST Hamutenya comes under the kosh, as does former Trade Permanent Secretary Andrew Ndishishi.While the Commission proposed that Hamutenya be investigated for allegedly “having significantly contributed to the collapse of Amcom and DBC” through “over managing”, Ndishishi is let off with a reprimand.Ndishishi awarded a N$1,5 million loan to Kavango Empowerment in which he had 3,64 per cent shares without declaring his interest, “which is a conflict of interest”.”Such conduct by Mr Ndishishi constitutes a serious abuse of public funds,” the report says.In the case of Champion, the commission recommended that the Inspector General of the Namibian Police be directed to finalise the criminal investigations on Champion “as a matter of urgency”.That was way in December 2004 – more than three years ago.The businesses and projects of the DBC were set up to train ex-combatants, but instead became conduits of self-enrichment and bottomless pits for public funds, the commission found.Despite the fact that, in the short term, the DBC helped to contain what could have become a social and political turmoi
l caused by frustrated ex-combatants, those charged with the leadership and management of DBC failed to carry out their mandate, according to the Commission.Through mismanagement, the ex-combatants, who were targeted beneficiaries, became victims of greed, selfishness, nepotism and corruption, according to the unpublished report of the commission.Although the commission maintained in its report that it was not on a witch-hunt in Hamutenya’s case, it blamed him for a lack of demarcation of responsibilities in the running of the two institutions’ affairs.The findings claim that had Hamutenya kept to Cabinet decisions on the two, “most of the problems encountered could have been avoided”.According to the report, Hamutenya did things “single-handedly” and failed to inform the Cabinet on time.”The commission concludes that the then Minister of Trade and Industry (Hamutenya) must bear full responsibility of interfering in the running of Amcom through his over involvement in management and operational issues and overstepping his authority and level of responsibility and accountability,” the report charges.According to it, Hamutenya had hired and fired boards without Cabinet approval, appointed and dismissed the Managing Director and had allegedly directed the Amcom management to sell off its assets to pay debts.CHAMPION SINS Findings against Champion included the PCC apparently buying his wife a cellphone and paying for her private calls.PCC vehicles were sold and the money pocketed by him, ‘night out’ claims made without supporting documents and the company rented two fully furnished houses – one in Windhoek and one in Okahandja – for Champion while he was receiving a monthly housing allowance of N$18 000.The company allegedly also paid for Champion’s groceries, DsTV payments, entertainment chairs, building materials, computers, furniture and toiletries,as well as cigarettes under the so-called ’employee welfare’.He would also pay petrol with the company’s fuel card but keep receipts to claim the costs as if he had paid for them out of his pocket.The former General Manager also allegedly hired out a bulldozer to PCC at a rate of N$11 000 a month while he contracted his son to compile an updated fixed assets register for the company at a cost of N$10 000.He also allegedly gave some clean-up work on the Sossusvlei road project to his sister while he used PCC employees to work on his farm for varying periods between 1999 and 2002.Another finding was that Champion bought various items for his brother-in-law at a public auction with the company’s money.That was in addition to several of his own purchases with company money and the PCC paying for the repair cost of his vehicles.According to his contract, Champion was entitled to a bonus should the company’s profits exceed N$1 million.In the financial year ending March 2000, Champion allegedly said the PCC recorded a net profit after tax of N$3 137 675 and claimed N$181 963.90.A subsequent forensic audit revealed that the company actually made a profit of N$432 369 only and that he had allegedly taken money he was not entitled to.The commission also established that Champion “had a habit” of hiring out his personal vehicles to PCC on the pretext that the company had a serious shortage of transport while also selling his private items to the company.He invited Nujoma to his farm for a hunting trip and “misled” the PCC staff, telling them that it was an official visit.He claimed for all the expenses.