NTA rebuts Nimt funding claims

THE Namibia Training Authority has rebutted claims that it played a role in the Namibian Institute of Mining and Technology’s (Nimt) financial woes, which has resulted in about 40 retrenchments.

The NTA issued a letter to The Namibian following a story on Monday about the retrenchment of 40 Nimt employees, and the financial claims made by the institute’s executive director, Eckhart Mueller, and the Namibian Uranium Association (NUA) about the NTA’s funding to Nimt.

Figures provided by NUA, and confirmed by Mueller, which were also published in a story about a month ago on government intervention sought for Nimt, indicated that Nimt’s financial situation was allegedly caused by a cut of its subsidy from the NTA – from about N$25 000 per student a year to N$22 825.

Indications were also that subsidies for students at government vocational training centres (VTCs) are about N$75 000 per student a year – more than for Nimt.

The figures showed that Nimt’s real training cost is approximately N$49 000, of which N$16 000 is covered by the Namibian Students Financial Assistance Fund (NSFAF) loan, and N$3 000 by the students.

This leaves Nimt with a balance of N$30 000, but the reduced NTA subsidy of N$22 825 leaves the institute with a loss of N$7 175 per student – which is a N$26 million shortfall a year for its 3 680 students.

It was stated that Nimt’s troubles were exacerbated over the years as NTA subsidies were also paid late, while expenses occur on a regular basis.

The NTA’s public relations manager, Mornay Louw, stated in the letter that the entity “unequivocally rebuts” the claims of its funding to Nimt, and that claims of Nimt’s financial crisis being caused by a cut in its subsidy were “devoid of truth”.

He said the subsidy to Nimt, from the Ministry of Higher Education, Training and Innovation as part of the annual budget allocation, and based on a unit cost per trainee, “has not been reduced”.

As for grants for students at government VTCs being N$75 000 per student per year, Louw said Nimt is currently being funded at a unit cost (per student) of N$22 825 (up from N$20 750 in the last two financial years). Nimt’s unit cost funding was never pegged at N$25 000, he stressed.

Similarly, government VTCs under the NTA’s supervision are also subsidised on a per trainee/unit cost basis.

This unit cost for public VTCs stood at N$13 310 per trainee for the 2017/18 financial year. VTC trainees (including Nimt) receive an additional N$16 000 through loans made available by the NSFAF.

“The only noteworthy exception is the fact that the NTA pays the salaries of employees at public VTCs under its supervision. This does not increase the unit cost from N$13 310 to N$75 000. The NTA support (N$13 310 per trainee), NSFAF contribution (N$16 000 per trainee), plus the salaries translate into an average unit cost of N$37 000 per trainee at public VTCs, and certainly not N$75 000 as asserted,” explained Louw.

Furthermore, as for Nimt’s troubles being exacerbated over the years as NTA subsidies are paid late while expenses occur on a regular basis, Louw said the NTA appreciates the importance of expedient payments to Nimt to enable the institution to honour monthly salaries, training related expenses and other vendor payments/expenses.

“As such, it has made special internal arrangements to ensure such payments are fast-tracked as soon as the Ministry of Finance releases funds,” he added, explaining that the NTA has made a total of 36 payments to Nimt, amounting to nearly N$99 million.

“Of these payments, only 10 were made later than the 22nd of the month, with the latest payment effected on the 25th (the day on which Nimt salaries are due).”

Furthermore, Louw said it should be noted that the NTA has paid N$6 million to the taxman on behalf of Nimt in 2016/17, which Nimt agreed to pay back in eight instalments over the 2017/18 and 2018/19 financial years, as per agreement signed on 30 May 2017.

“This ‘soft loan’, coupled with a service level agreement overpayment to the institution during the 2017/18 financial year, necessitates the NTA to recoup funds from Nimt,” he said, adding that a letter highlighting that the NTA will as a result only be able to pay Nimt about N$3,5 million per month for the remainder of the 2018/19 year, was issued to Mueller in April.

In addition to this, the NTA also pays PAYE commitments of Nimt of about N$1,8 million per month, to the Receiver of Revenue.

Last week, Nimt announced that it had let go of 40 workers to be able to keep “afloat”. With the decision to retrench, there will also be changes to the trainee intake volumes, department conversions, and the relocation of machines and equipment at Nimt’s campuses at Arandis, Tsumeb and Keetmanshoop.

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