Nepru Director resigns

THE Director of the Namibian Economic Policy Research Unit (Nepru), Dirk Hansohm, has resigned following revelations of the organisation’s financial crisis.

Hansohm confirmed yesterday that he had stepped down as the head of the organisation but said the timing of his move was “still under discussion” with the board of the country’s main economic watchdog. Sources said the Board was hesitant to accept his resignation and wanted to meet first before approving it.Hansohm and Finance Manager Patrick Quinn spent some time yesterday in discussions with the Chairperson of Nepru’s Board, Zed Ngavirue.Ngavirue told The Namibian through Hansohm that the Board must first meet before issuing any statement on the crisis at Nepru.Other board members are Swapo Chief Whip Ben Amathila, Deputy Governor of the Bank of Namibia Paul Hartmann, Salmi Kaulinge of the Namibia Chamber of Commerce and Industry, Information Minister Netumbo Nandi-Ndaitwah, National Planning Commission Permanent Secretary Mocks Shivute, Kaire Mbuende as Founding Member and Erica Shafudah from the Ministry of Finance.Hansohm and Quinn earlier confirmed to The Namibian that the organisation had not paid Pay-As-You-Earn (PAYE) taxes deducted from employees for two years, and that it had also not submitted tax returns during the same period.The financial pinch also meant the organisation had not paid out 13th cheques to employees in December in accordance with their conditions of employment.The financial quagmire has been brought to the attention of donors, President Hifikepunye Pohamba and Prime Minister Nahas Angula.Hansohm, also Pohamba’s economic advisor, said they had a donor round-table discussion this week and had also followed up on discussions with Pohamba and Angula.”We have reached a sensitive stage.We shared our funding needs and discussions are ongoing,” he said when contacted by The Namibian yesterday.Hansohm said earlier that Nepru’s income from donors had been reduced from N$10 million to N$8,46 million in 2004 while expenses had increased over the same period.This apparently resulted in Nepru’s former accountant moving funds from one programme area to another and not paying the Receiver of Revenue.Nepru has met with the Receiver’s office to arrange paying off the debt and penalties.Staff had also been promised payment of the 13th cheques due to them as soon as there was money to do so, the Nepru chief said.Quinn confirmed that Nepru had overdrawn the money it received from Sida by N$800 000 but the research project was continuing until completion later this year.All the money was accounted for, he said.He said Nepru has cut the salary bill by N$3,2 million from N$5 million a year.Although Government is represented on the Nepru Board and the organisation provides crucial research information for future decisions, Nepru gets no funding from the State.Nepru was set up in 1990 with assistance from the governments of Sweden and Norway.Since 1994, funding has been provided by the African Capacity Building Foundation (ACBF).While grants covered 80 per cent of the organisation’s total budget in 2000, the second grant for the period 2000 to 2005 shrank by 40 per cent and the new grant, which covers 2006 to 2009, will only cover 20 per cent of Nepru’s budget.Sources said the Board was hesitant to accept his resignation and wanted to meet first before approving it. Hansohm and Finance Manager Patrick Quinn spent some time yesterday in discussions with the Chairperson of Nepru’s Board, Zed Ngavirue.Ngavirue told The Namibian through Hansohm that the Board must first meet before issuing any statement on the crisis at Nepru.Other board members are Swapo Chief Whip Ben Amathila, Deputy Governor of the Bank of Namibia Paul Hartmann, Salmi Kaulinge of the Namibia Chamber of Commerce and Industry, Information Minister Netumbo Nandi-Ndaitwah, National Planning Commission Permanent Secretary Mocks Shivute, Kaire Mbuende as Founding Member and Erica Shafudah from the Ministry of Finance.Hansohm and Quinn earlier confirmed to The Namibian that the organisation had not paid Pay-As-You-Earn (PAYE) taxes deducted from employees for two years, and that it had also not submitted tax returns during the same period.The financial pinch also meant the organisation had not paid out 13th cheques to employees in December in accordance with their conditions of employment.The financial quagmire has been brought to the attention of donors, President Hifikepunye Pohamba and Prime Minister Nahas Angula.Hansohm, also Pohamba’s economic advisor, said they had a donor round-table discussion this week and had also followed up on discussions with Pohamba and Angula.”We have reached a sensitive stage.We shared our funding needs and discussions are ongoing,” he said when contacted by The Namibian yesterday.Hansohm said earlier that Nepru’s income from donors had been reduced from N$10 million to N$8,46 million in 2004 while expenses had increased over the same period.This apparently resulted in Nepru’s former accountant moving funds from one programme area to another and not paying the Receiver of Revenue.Nepru has met with the Receiver’s office to arrange paying off the debt and penalties.Staff had also been promised payment of the 13th cheques due to them as soon as there was money to do so, the Nepru chief said.Quinn confirmed that Nepru had overdrawn the money it received from Sida by N$800 000 but the research project was continuing until completion later this year.All the money was accounted for, he said.He said Nepru has cut the salary bill by N$3,2 million from N$5 million a year.Although Government is represented on the Nepru Board and the organisation provides crucial research information for future decisions, Nepru gets no funding from the State.Nepru was set up in 1990 with assistance from the governments of Sweden and Norway.Since 1994, funding has been provided by the African Capacity Building Foundation (ACBF).While grants covered 80 per cent of the organisation’s total budget in 2000, the second grant for the period 2000 to 2005 shrank by 40 per cent and the new grant, which covers 2006 to 2009, will only cover 20 per cent of Nepru’s budget.