Lost millions haunt NDC

THE drawn-out winding down of the debt-ridden Namibia Development Company (NDC) is in limbo.

Staff who were supposed to wrap up the process last month are still waiting for instructions on a date to shut up shop, while trying to collect payments for loans totalling N$20 million, a parliamentary committee hearing found out yesterday. The committee heard a woeful tale of tens of millions of taxpayers’ money being misinvested, loans which could not be reclaimed because of political sensitivities and close to N$5 million ploughed into a Chinese tractor project which now cannot be accounted for.The NDC was supposed to assist struggling Namibians with small and medium loans to enable them to start businesses.The State-owned enterprise also handed over N$55 million to another Government outfit, the Offshore Development Company (ODC), which proceeded to lump it together with N$45 million to all too willingly “invest” with a briefcase company in Botswana.The dubious N$100 million deal came to light in 2005.Up until today not a cent has been recovered, despite repeated, but now seemingly hollow promises that resolution is at hand, and that progress is being made.The Managing Director of the NDC, Issy Namaseb, told the Parliamentary Standing Committee on Public Accounts that debt collection between April and December 2006 had raked in meagre pickings of only N$333 750, while N$6 million was collected in the previous financial year ending March 2006.”Some N$20 million is still outstanding, but it is difficult to collect the money, as people think the NDC is winding up anyway and that they might not need to honour their loans.As a result of a Cabinet decision, the Development Bank of Namibia will take over the business of the NDC and it will also get the loan book and will have to continue with the debt collection,” Namaseb said.Eighty per cent of the N$20 million loan contracts were with different lawyers who are to collect the debt, but progress was very slow, Namaseb noted.Committee members proposed that the NDC should change lawyers to accelerate the debt collection or confiscate the assets of debtors.A long list of debtors was circulated during the hearing, but the media could not see it.Although no names were mentioned, members noted that most belonged to previously disadvantaged Namibians, several of them who were now quite rich.”Why can’t you make them honour their loans?” Committee Chairman Johan de Waal asked Namaseb.”There are certain political sensitivities,” he replied.”It does not matter to me if they are black-skinned or white, if they owe money, they should pay it back,” said Swapo backbencher Chief Ankama, while his colleague Jeremiah Nambinga wanted to know what the “political sensitivities” were.The Committee also heard that the NDC still owned 11 000 cattle on several farms in the North, but that the herd originally counted 18 000 animals and was transferred to a defunct State enterprise, Amcom.Amcom sold off 7 000, as it had severe financial problems.A N$4,8 million loan the NDC received from Government went down the drain in 1998, when the NDC used the money to buy into a tractor manufacturing company which was set up by Chinese nationals at Tsumeb.It was found that the Chinese tractors were not suitable for Namibia and the company was shelved.The NDC officials could not provide answers on what happened to the N$4,8 million the NDC sunk into that tractor company, as that deal was done by the previous management.The Parliamentary Committee on Public Accounts will soon have a meeting with the NDC board of directors to further discuss loan recovery.ndThe committee heard a woeful tale of tens of millions of taxpayers’ money being misinvested, loans which could not be reclaimed because of political sensitivities and close to N$5 million ploughed into a Chinese tractor project which now cannot be accounted for.The NDC was supposed to assist struggling Namibians with small and medium loans to enable them to start businesses.The State-owned enterprise also handed over N$55 million to another Government outfit, the Offshore Development Company (ODC), which proceeded to lump it together with N$45 million to all too willingly “invest” with a briefcase company in Botswana.The dubious N$100 million deal came to light in 2005.Up until today not a cent has been recovered, despite repeated, but now seemingly hollow promises that resolution is at hand, and that progress is being made.The Managing Director of the NDC, Issy Namaseb, told the Parliamentary Standing Committee on Public Accounts that debt collection between April and December 2006 had raked in meagre pickings of only N$333 750, while N$6 million was collected in the previous financial year ending March 2006. “Some N$20 million is still outstanding, but it is difficult to collect the money, as people think the NDC is winding up anyway and that they might not need to honour their loans.As a result of a Cabinet decision, the Development Bank of Namibia will take over the business of the NDC and it will also get the loan book and will have to continue with the debt collection,” Namaseb said.Eighty per cent of the N$20 million loan contracts were with different lawyers who are to collect the debt, but progress was very slow, Namaseb noted.Committee members proposed that the NDC should change lawyers to accelerate the debt collection or confiscate the assets of debtors.A long list of debtors was circulated during the hearing, but the media could not see it.Although no names were mentioned, members noted that most belonged to previously disadvantaged Namibians, several of them who were now quite rich.”Why can’t you make them honour their loans?” Committee Chairman Johan de Waal asked Namaseb.”There are certain political sensitivities,” he replied.”It does not matter to me if they are black-skinned or white, if they owe money, they should pay it back,” said Swapo backbencher Chief Ankama, while his colleague Jeremiah Nambinga wanted to know what the “political sensitivities” were.The Committee also heard that the NDC still owned 11 000 cattle on several farms in the North, but that the herd originally counted 18 000 animals and was transferred to a defunct State enterprise, Amcom.Amcom sold off 7 000, as it had severe financial problems.A N$4,8 million loan the NDC received from Government went down the drain in 1998, when the NDC used the money to buy into a tractor manufacturing company which was set up by Chinese nationals at Tsumeb.It was found that the Chinese tractors were not suitable for Namibia and the company was shelved.The NDC officials could not provide answers on what happened to the N$4,8 million the NDC sunk into that tractor company, as that deal was done by the previous management.The Parliamentary Committee on Public Accounts will soon have a meeting with the NDC board of directors to further discuss loan recovery.nd