ODC faces liquidation

THE Offshore Development Company (ODC) is facing liquidation at the hands of a disgruntled investor for being unable to repay over N$7 million it invested on behalf of Mauritian-Namibian information technology company, Silnam.

The money forms part of a botched N$100 million investment the ODC has been unable to get returned to it by little-known Botswanan investment company, Great Triangle Investments. The Namibian has learned that Silnam, of which the ODC is a 26 per cent shareholder, will approach the High Court in three weeks time for a provisional liquidation order.Silnam is also requesting the court to invoke Section 417 of the Companies Act which will force ODC directors and management who were party to the investment, to provide the court with information.Last year, the court’s decision to invoke this provision in the search for N$30 million owing to the Social Security Commission (SSC) during the liquidation of Avid Investment Corporation, sparked the public unfolding of one of the country’s highest profile corruption scandals since Independence.In the case of the ODC, Silnam will ask the court that in particular ODC managers Mabos Ortmann, Philip Namundjebo and Nghidinua Daniel be summoned to account for the investment as well as ODC Board Chairperson Gerdus Burmeister, ODC/NDC CEO Abdool Sattar Aboobakar and ODC director and Trade and Industry Permanent Secretary Andrew Ndishishi.In an affidavit filed with the High Court shortly before Christmas, Silnam Managing Director Maunasamy Padachi sets out the trail of events that led to his company agreeing to invest N$10 million with the ODC between 2003-04.Only N$2,5 million was returned.A letter of demand and several meetings with the ODC to shed more light on the return of its investment Padachi said, yielded little in the way of providing answers and hence prompted the decision to push for the liquidation of the ODC.Silnam holds a multi-million dollar contract with the Namibian Government to install an integrated financial management system for the Ministry of Finance – a project due for completion during the first half of this year.Silnam is linked to the Mauritian government-owned information technology company SIL (State Informatics Limited) and the Mauritian government is also the major shareholder in Silnam with 48 per cent.The Namibian Government is the major shareholder of around 95 per cent in the ODC.Unlike most other Government-owned companies, the ODC is not governed by its own law, but is a company with limited liability established in terms of the Export Processing Act and incorporated as such in terms of the Companies Act.According to Padachi’s affidavit, he, Namundjebo, Ortmann and Daniel entered into an oral agreement in September 2003 for Silnam to make a short-term investment with the ODC in the amount of N$10 million.Ortmann, Namundjebo and Daniel are all also directors of Silnam.Of the total amount to be invested, half of the money was disbursed directly to the ODC, while the remaining N$5 million was paid directly to Great Triangle Investments on behalf of the ODC, according to Padachi.Namundjebo signed the request for part of the total investment in September 2003 and again in March 2004, in his capacity as Silnam director.Similarly, so did Daniel in December 2003.The requests were all co-signed by Padachi.The N$10 million was to be repaid to Silnam at an annual interest rate of 18 per cent upon either oral or written demand by the investor.In documents before the court, Silnam has provided written confirmation by the ODC in March 2005 that it still held N$7,5 million plus interest in an investment on behalf of Silnam.According to Padachi’s affidavit, he demanded repayment of the outstanding amount in May last year from Namundjebo, Daniel and Ortmann.”Despite numerous requests, no further payments were forthcoming from the respondent,” maintains Padachi.In September, Silnam then served a written demand through the High Court on the ODC, demanding repayment.It originally planned to apply for the ODC’s liquidation in early November already because of the failure to repay, but the ODC requested more time while it went about its own investigations to track down the investment.Two Mauritian directors came to Namibia in early December in search of answers and Padachi said afterwards it was obvious that the ODC did not know where their money was nor was it capable of repaying them.During 2003 and 2004, the ODC invested more than N$90 million in public funds with Great Triangle Investments.All the ODC’s attempts over the last six months to have the money repaid to it have proved futile.The Namibian has learned that Silnam, of which the ODC is a 26 per cent shareholder, will approach the High Court in three weeks time for a provisional liquidation order.Silnam is also requesting the court to invoke Section 417 of the Companies Act which will force ODC directors and management who were party to the investment, to provide the court with information.Last year, the court’s decision to invoke this provision in the search for N$30 million owing to the Social Security Commission (SSC) during the liquidation of Avid Investment Corporation, sparked the public unfolding of one of the country’s highest profile corruption scandals since Independence.In the case of the ODC, Silnam will ask the court that in particular ODC managers Mabos Ortmann, Philip Namundjebo and Nghidinua Daniel be summoned to account for the investment as well as ODC Board Chairperson Gerdus Burmeister, ODC/NDC CEO Abdool Sattar Aboobakar and ODC director and Trade and Industry Permanent Secretary Andrew Ndishishi.In an affidavit filed with the High Court shortly before Christmas, Silnam Managing Director Maunasamy Padachi sets out the trail of events that led to his company agreeing to invest N$10 million with the ODC between 2003-04.Only N$2,5 million was returned.A letter of demand and several meetings with the ODC to shed more light on the return of its investment Padachi said, yielded little in the way of providing answers and hence prompted the decision to push for the liquidation of the ODC.Silnam holds a multi-million dollar contract with the Namibian Government to install an integrated financial management system for the Ministry of Finance – a project due for completion during the first half of this year.Silnam is linked to the Mauritian government-owned information technology company SIL (State Informatics Limited) and the Mauritian government is also the major shareholder in Silnam with 48 per cent.The Namibian Government is the major shareholder of around 95 per cent in the ODC.Unlike most other Government-owned companies, the ODC is not governed by its own law, but is a company with limited liability established in terms of the Export Processing Act and incorporated as such in terms of the Companies Act.According to Padachi’s affidavit, he, Namundjebo, Ortmann and Daniel entered into an oral agreement in September 2003 for Silnam to make a short-term investment with the ODC in the amount of N$10 million.Ortmann, Namundjebo and Daniel are all also directors of Silnam.Of the total amount to be invested, half of the money was disbursed directly to the ODC, while the remaining N$5 million was paid directly to Great Triangle Investments on behalf of the ODC, according to Padachi.Namundjebo signed the request for part of the total investment in September 2003 and again in March 2004, in his capacity as Silnam director.Similarly, so did Daniel in December 2003.The requests were all co-signed by Padachi.The N$10 million was to be repaid to Silnam at an annual interest rate of 18 per cent upon either oral or written demand by the investor.In documents before the court, Silnam has provided written confirmation by the ODC in March 2005 that it still held N$7,5 million plus interest in an investment on behalf of Silnam.According to Padachi’s affidavit, he demanded repayment of the outstanding amount in May last year from Namundjebo, Daniel and Ortmann.”Despite numerous requests, no further payments were forthcoming from the respondent,” maintains Padachi.In September, Silnam then served a written demand through the High Court on the ODC, demanding repayment.It originally planned to apply for the ODC’s liquidation in early November already because of the failure to repay, but the ODC requested more time while it went about its own investigations to track down the investment.Two Mauritian directors came to Namibia in early December in search of answers and Padachi said afterwards it was obvious that the ODC did not know where their money was nor was it capable of repaying them.During 2003 and 2004, the ODC invested more than N$90 million in public funds with Great Triangle Investments.All the ODC’s attempts over the last six months to have the money repaid to it have proved futile.