ODC admits it was duped

THE Offshore Development Company (ODC) has finally admitted that the N$100 million investment it made with Great Triangle Investments was “orchestrated” and “fraudulent”.

The ODC has also acknowledged that it has no idea where the money is. In a statement issued by the ODC Board of Directors on Friday, the company said it believed it was “enticed” into the transaction in 2003.”The continued outstanding repayment of the invested capital plus accrued interest, as well as the failure of the parties entrusted with the ODC investment to provide verifiable information on the whereabouts of the investment, give reason to doubt their credibility,” said the ODC.Until now, the company had maintained that its investment was merely “overdue” and that negotiations for repayment were underway.In this, only its third public statement since the money was reported “missing” four months ago, the ODC however failed to report any concrete progress in getting the money back, or any other information regarding the investment not already in the public domain.SEARCH TO CARRY ON The ODC statement said it was still awaiting the outcome of investigations by a team of lawyers it had employed.”Until proven otherwise, there is reason to believe that the ODC was enticed into a fraudulent investment scheme orchestrated by the same individuals involved in both Mortgage Bond Financial Services and Great Triangle Investments,” said the ODC.However, it attempted to give an assurance that “the ODC and its shareholders will leave no stone unturned until this matter is conclusively resolved”.The ODC said the investigation, which it has handed over to the Police and lawyers, was being “complicated by the cross-border nature of the investment deal”.Great Triangle Investment is a company registered in Botswana, with a South African – Philip Fourie – as the principal director.A partner, Tertius Theart, with whom Fourie owns several other companies, is believed to have played a major role in securing the ODC investment.It has been nearly four months since the company’s auditors, Deloitte and Touche, alerted the board that the investments had matured and not been repaid.’IT WASN’T US’ The ODC statement claims that this warning was the first time “non-executive” directors became aware that there was a problem with the investments placed with Great Triangle Investments.The ODC’s non-executive directors are ODC shareholder Gerhardus Burmeister and Trade and Industry Permanent Secretary Andrew Ndishishi.Although the statement was issued in the name of the ODC Board of Directors, Burmeister referred queries by The Namibian to the ODC Manager for Special Projects, Daniel Nghidinua.No mention is made in the statement that Nghidinua has been appointed as the ODC’s interim CEO, or whether Abdool Aboobakar, the Namibia Development Corporation (NDC) head who also doubles as the ODC CEO, has been suspended.Nghidinua confirmed to The Namibian on Friday that he had assumed the position at the direction of the board, in an interim capacity.”Yes, I have been appointed in the position, effective since the beginning of the month,” he said.He could not say how long he was expected to hold the post.When questioned about the statement, Daniel said it had been issued by the board.Aboobakar, although at his office at the NDC last week, refused to take calls from The Namibian.He is said to be in ill health, having contracted chikungunya in his native Mauritius some months back.Chikungunya is a viral disease resembling dengue fever, transmitted by mosquitoes and endemic in East Africa and parts of Asia.’IDLE CASH’ More than N$55 million of the amount invested by the ODC came from the NDC.The ODC has said that its decision to invest its “idle” cash as a move towards generating money, given that it is not a profit-making entity.”Faced with an expanded mandate on the one hand, and limited funding on the other, the ODC sustained itself through prudent financial management of the available resources and the adoption of effective cost-cutting measures.This also led to the decision to strengthen the company’s financial self-sustenance by investing idle funds in interest-generating financial instruments,” said the ODC statement.The ODC said that it first invested its money with South African company, Mortgage Bond Financial Services, in 2003, which the non-executive directors say they were led to believe was a “an investment in bonds”.The Namibian has established that Mortgage Bond Financial Services was flagged by the Financial Services Bureau (FSB) in that same year as a company that investors were warned against doing business with.It no longer exists.The ODC Board said after an AGM in April 2003, ODC management proposed that the money be transferred to Great Triangle Investment for better returns.It was also led to believe that the invested capital was secured by a guarantee from Barclays Bank in Botswana.’WHAT WE’VE DONE’ The ODC was established in 1996, after the passing of the Export Processing Zone Act in 1995, to brand Namibia as an attractive investment destination.It said that to date its promotional activities had generated N$5,2 billion in investment.It has developed an EPZ park at Oshikango and an industrial park at Katima Mulilo.Another is planned for Katwitwi.With the dissolution of the NDC underway, the ODC was assigned to take over the management of the Sites and Premises Development Programme of the Ministry of Trade and Industry from April.In a statement issued by the ODC Board of Directors on Friday, the company said it believed it was “enticed” into the transaction in 2003.”The continued outstanding repayment of the invested capital plus accrued interest, as well as the failure of the parties entrusted with the ODC investment to provide verifiable information on the whereabouts of the investment, give reason to doubt their credibility,” said the ODC.Until now, the company had maintained that its investment was merely “overdue” and that negotiations for repayment were underway.In this, only its third public statement since the money was reported “missing” four months ago, the ODC however failed to report any concrete progress in getting the money back, or any other information regarding the investment not already in the public domain.SEARCH TO CARRY ON The ODC statement said it was still awaiting the outcome of investigations by a team of lawyers it had employed.”Until proven otherwise, there is reason to believe that the ODC was enticed into a fraudulent investment scheme orchestrated by the same individuals involved in both Mortgage Bond Financial Services and Great Triangle Investments,” said the ODC.However, it attempted to give an assurance that “the ODC and its shareholders will leave no stone unturned until this matter is conclusively resolved”. The ODC said the investigation, which it has handed over to the Police and lawyers, was being “complicated by the cross-border nature of the investment deal”.Great Triangle Investment is a company registered in Botswana, with a South African – Philip Fourie – as the principal director.A partner, Tertius Theart, with whom Fourie owns several other companies, is believed to have played a major role in securing the ODC investment.It has been nearly four months since the company’s auditors, Deloitte and Touche, alerted the board that the investments had matured and not been repaid.’IT WASN’T US’ The ODC statement claims that this warning was the first time “non-executive” directors became aware that there was a problem with the investments placed with Great Triangle Investments.The ODC’s non-executive directors are ODC shareholder Gerhardus Burmeister and Trade and Industry Permanent Secretary Andrew Ndishishi.Although the statement was issued in the name of the ODC Board of Directors, Burmeister referred queries by The Namibian to the ODC Manager for Special Projects, Daniel Nghidinua.No mention is made in the statement that Nghidinua has been appointed as the ODC’s interim CEO, or whether Abdool Aboobakar, the Namibia Development Corporation (NDC) head who also doubles as the ODC CEO, has been suspende
d.Nghidinua confirmed to The Namibian on Friday that he had assumed the position at the direction of the board, in an interim capacity.”Yes, I have been appointed in the position, effective since the beginning of the month,” he said.He could not say how long he was expected to hold the post.When questioned about the statement, Daniel said it had been issued by the board.Aboobakar, although at his office at the NDC last week, refused to take calls from The Namibian.He is said to be in ill health, having contracted chikungunya in his native Mauritius some months back.Chikungunya is a viral disease resembling dengue fever, transmitted by mosquitoes and endemic in East Africa and parts of Asia.’IDLE CASH’ More than N$55 million of the amount invested by the ODC came from the NDC.The ODC has said that its decision to invest its “idle” cash as a move towards generating money, given that it is not a profit-making entity.”Faced with an expanded mandate on the one hand, and limited funding on the other, the ODC sustained itself through prudent financial management of the available resources and the adoption of effective cost-cutting measures.This also led to the decision to strengthen the company’s financial self-sustenance by investing idle funds in interest-generating financial instruments,” said the ODC statement.The ODC said that it first invested its money with South African company, Mortgage Bond Financial Services, in 2003, which the non-executive directors say they were led to believe was a “an investment in bonds”.The Namibian has established that Mortgage Bond Financial Services was flagged by the Financial Services Bureau (FSB) in that same year as a company that investors were warned against doing business with.It no longer exists.The ODC Board said after an AGM in April 2003, ODC management proposed that the money be transferred to Great Triangle Investment for better returns.It was also led to believe that the invested capital was secured by a guarantee from Barclays Bank in Botswana.’WHAT WE’VE DONE’ The ODC was established in 1996, after the passing of the Export Processing Zone Act in 1995, to brand Namibia as an attractive investment destination.It said that to date its promotional activities had generated N$5,2 billion in investment.It has developed an EPZ park at Oshikango and an industrial park at Katima Mulilo.Another is planned for Katwitwi.With the dissolution of the NDC underway, the ODC was assigned to take over the management of the Sites and Premises Development Programme of the Ministry of Trade and Industry from April.