Millions at stake in ‘mystery’ trust fund

QUESTIONS about the future ‘and the very existence’ of the Powercom Educational Trust, which held a two per cent stake in Cell One before the sale of the telecommunications company to Telecel Globe last week, drew a blank this week as The Namibian tried to establish how the trust would benefit from the sale.

Powercom Educational Trust held two per cent shareholding in Cell One and was entitled to around N$11,6 million from the sale of Cell One for around N$580 million to Telecel Globe of Egypt.
But The Namibian’s investigation into the existence of the trust resulted in more questions than answers, drawing several “no comment” responses from those who were supposed to administer it.
ISSUES
The trust was established by the Cell One shareholders – the Norwegian-based Telecom Management Partners (TMP), NamPower, Old Mutual and Zeven Investments and given the millions it is supposed to yield from the sale has become of particular interest to many people.
According to the Powercom Educational Trust papers filed at the Master of the High Court, the trust was formed on June 29 2004, but was dissolved in less than two months on August 2 2004.
But Christiaan Gouws of Fischer, Quarmby and Pfeifer, the Notary Public in the creation and termination of the trust, says that the trust was re-established, and that there’s no sensation to be found.
“The reason the first one was terminated was due to problems in terms of its formation. I can understand that it raises questions in terms of the sale of Cell One, but I can assure you that there are no issues there, and no money disappeared.”
But the silence on the matter from NamPower, to whom all the other shareholders directed questions, has been eerie.
According to Johann Malan of NamPower’s legal department, the trustees of the Educational Trust
– whose names he would not disclose despite NamPower’s involvement as a Government institution, and therefore a public entity – are yet to meet to discuss what is to become of the trust.
All other questions regarding the termination of the trust in August 2004, whether it was later re-established to continue to hold its two per cent stake in Cell One, what the future of the trust is, whether it conducted any of its intended activities at the time of sale of Cell One, and whether another trust had been identified to receive the assets of the trust should it have been terminated, all got a “no comment” response.
The Deed of Trust lists Leake Hangala as the founder, and Tjama Tjivikua and Ophelia Netta as the trustees.
Among other things the trust was supposed to promote science and technology education, to provide bursaries or scholarships for science and technology studies, to invest in or divest from identified information and communications business ventures and to raise funds, internally or externally, for the sustainability of the trust.
No specific beneficiaries to the Trust are listed, and Clause 21 of the trust document further states that upon termination of the trust, any assets owned by the trust are to be transferred to another educational trust.
When contacted for comment, both Hangala and Tjivikua stated that they are no longer involved in the trust, and directed The Namibian’s questions to NamPower.
Tjivikua said he had only served on the trust for a few months in setting it up and finalising documents with lawyers, and left the trust before the deal had even been finalised with the Norwegians.
Gerson Narib, the Chairperson of Cell One’s former Board of Directors before the sale of the company to Telecel Globe, said he was unsure who acted on behalf of the trust during the sale of Cell One to Telecel Globe.
Narib confirmed that as far as he knew, there was a trust that had two per cent in Cell One, and that the funding from the acquisition of shares by Telecel Globe should have been paid, but that the Trust had been inactive to date.
Given the responses of Narib, Malan and Gouws, The Namibian can only assume that the trust does indeed exist.
nangula@namibian.com.na