NWR owes N$12,5 m in VAT payments

A GOVERNMENT tourism enterprise, which owed some N$80 million a year ago and was bailed out by Government with N$180 million for a ‘turnaround strategy’, still has a debt of N$12,5 million for Value Added Tax (VAT).

Cabinet has now directed the Ministry of Environment and Tourism (MET) “to seek advice from the Treasury Cabinet Committee on the financing of projects that are not catered for in the Namibia Wildlife Resorts (NWR) turnaround strategy”, its outstanding VAT payment of N$12,5 million and the asset transfer from Government to the NWR, according to the latest Cabinet briefing paper released yesterday. Failing to pay VAT is against the law.The NWR was established in the year 2000, had accumulated debt of N$80 million by 2006 and has failed to reach profitability ever since.A year ago, Cabinet signed a loan guarantee of N$120 million for NWR and granted it N$60 million to be spread over the Medium Term Expenditure Framework (MTEF).Since last year, NWR has undertaken a re-organisation and restructuring exercise and all key positions in the senior and middle management cadre were filled, including that of resort managers for key facilities, such as Okaukuejo, Halali, Namutoni, Waterberg and the yet to be opened Sossus Dune Lodge.The Cabinet briefing paper praised the NWR for its staff training policy, noting that, “the generally polarised, disinterested and disillusioned workforce of NWR that the new management inherited are receiving continuous training to transform the culture of the company into a dynamic, enthusiastic, skilled and client-centred team.”It further added that: “Significant progress has been made in changing the general morale and skills of staff through improved intra-company communications, focused training and through the appointment of qualified and experienced personnel in vacant positions.”NWR appointed a ‘competent’ IT manager in July 2006.Since then, significant progress was made in upgrading both hardware and software “to achieve a harmonious, integrated information management environment.”Special attention is also given to financial management, marketing and diversification.”Despite the progress, NWR is still facing challenges with respect to its other resorts, outstanding VAT and asset transfer,” according to the latest Cabinet briefing paper.Failing to pay VAT is against the law.The NWR was established in the year 2000, had accumulated debt of N$80 million by 2006 and has failed to reach profitability ever since.A year ago, Cabinet signed a loan guarantee of N$120 million for NWR and granted it N$60 million to be spread over the Medium Term Expenditure Framework (MTEF).Since last year, NWR has undertaken a re-organisation and restructuring exercise and all key positions in the senior and middle management cadre were filled, including that of resort managers for key facilities, such as Okaukuejo, Halali, Namutoni, Waterberg and the yet to be opened Sossus Dune Lodge.The Cabinet briefing paper praised the NWR for its staff training policy, noting that, “the generally polarised, disinterested and disillusioned workforce of NWR that the new management inherited are receiving continuous training to transform the culture of the company into a dynamic, enthusiastic, skilled and client-centred team.”It further added that: “Significant progress has been made in changing the general morale and skills of staff through improved intra-company communications, focused training and through the appointment of qualified and experienced personnel in vacant positions.”NWR appointed a ‘competent’ IT manager in July 2006.Since then, significant progress was made in upgrading both hardware and software “to achieve a harmonious, integrated information management environment.”Special attention is also given to financial management, marketing and diversification.”Despite the progress, NWR is still facing challenges with respect to its other resorts, outstanding VAT and asset transfer,” according to the latest Cabinet briefing paper.