NTB boss gets N$1.5m car

Company in financial crisis triggered by overspending – insiders

The Namibia Tourism Board has bought a N$1.5-million luxury vehicle for its chief executive, Sebulon Chicalu, despite internal warnings regarding overspending and potential financial instability.

The board is said to be fighting a financial crisis allegedly triggered by overspending with more than N$11 million on trade fairs, staff costs and travelling allowances.

The purchase of the all-new Toyota Land Cruiser Prado in March has drawn criticism from board insiders and observers, who say it signals misplaced priorities during a financial crisis.

Insiders claim the spending undercuts the company management’s calls for discipline when the parastatal risks dipping into its investment reserves to pay salaries.

The NTB has, however, downplayed concerns about buying the parastatal’s boss a luxury vehicle.

The 2026 Toyota Land Cruiser Prado is currently registered under NTB at the Namibian Traffic Information System.

The NTB board allegedly approved a N$1.8-million budget for the parastatal to buy a Toyota Fortuner, which usually costs between N$700 and N$1 million for the chief executive officer (CEO).

Chief executives often have the option to buy a vehicle after their contract expired.

Speaking on behalf of Chicalu, NTB spokesperson Flora Quest on Monday said the vehicle was in line with company policy.

The board also denied suggestions that the company is in financial trouble.

“The board notes with concern that incomplete and preliminary internal working documents appear to have been shared out of context.

These documents do not reflect final figures for the fourth quarter, nor the audited financial results for the financial year,” she said.

Details of the financial dilemma at the parastatal tasked with marketing and promoting tourism in Namibia are contained in an internal memo drafted by a senior manager.

NTB chief financial officer Mbavanga Tjiueza on 30 March wrote: “We are implementing stricter fiscal controls to ensure financial sustainability. For this reason a ‘budget-first’ disbursement process is going to be introduced.”

She said any requirement for funds exceeding the departmental allocation must be supported by a written motivation to the CEO.

“Payments will resume for your department only once your detailed expenditure plans have been received and verified against the approved budget.

“Finance will only release funds against these verified departmental plans,” she said.

Tjiueza said the measures are being implemented “to protect the NTB from the legal and financial risks of non-compliance”.

Insiders says the NTB has considered dipping into its investment savings account to pay employee salaries.
Another source says investment funds can only be used when the operational budget is lacking.

THE NUMBERS

Financial documents seen by The Namibian, titled ‘Management Report’ and dated 1 April 2025 to 31 January 2026, show that the tourism board projected an expenditure of about N$7.4 million against an expected income of N$8 million for January alone, while anticipating a surplus of N$573 000.

The budget difference was mainly driven by overspending across several key areas, including marketing expenses which contributed to the biggest chunk of N$8.5 million, which increased from the budgeted N$2.9 million.

The costs for the marketing budget included digital and website design, as well as marketing research.

Another major driver of the overspending was employee costs, which doubled from a budgeted N$2.2 million to N$4.5 million.

According to the management report, the significant cost spike in employee costs is attributed to the appointment of additional staff, a 10% salary increase implemented in July, a salary adjustment for the CEO, and backdated pay that were not accounted for in the original budget.

Sources close to the matter claim the NTB has been forced to draw down its savings and tap into investment accounts to cover the shortfall.

According to the report, the board’s business travel costs tripled from N$573 000 to N$1.8 million during the period under review.

‘MISREPRESENTED’

Quest on Monday said the company’s financial position will be properly reflected in its annual financial statements for the year ending 31 March 2026.

She disputed concerns about its wage bill, saying employee costs have been misrepresented and that staffing levels are aligned with its operational needs.

“Any assessment or commentary on the Namibia Tourism Board’s financial performance would be more appropriately and credibly undertaken once the audited financial statements have been finalised and published.

The final, audited financial statements will be released through the appropriate official channels in due course,” she said.

According to Quest, spending on trade fairs, digital marketing and research falls within NTB’s approved budget and is necessary to promote Namibia as a competitive tourism destination.

LUXURY SPENDING

The financial strain follows earlier reporting by The Namibian, which revealed that NTB board members have been spending millions on subsistence and travel allowances, with about N$4 million set aside annually for trips and accommodation.

Board members allegedly undertook more than 20 international trips to countries such as Germany, Spain and Finland, with vice chairperson Rachel Koch and board chairperson Olavi Hamwele among those identified as key beneficiaries, alongside board Chicalu.

The spending drew criticism from sources who questioned its value, with some alleging that certain trips resembled “luxury travel” rather than efforts to promote Namibia’s tourism sector.

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