Parliament united on Air Namibia criticism

SWAPO backbencher Jeremiah Nambinga has called for a task force to investigate the problems experienced by Air Namibia that are draining millions from Government coffers.

He said although he appreciated having a national airline, he was worried about the continued problems experienced by Air Namibia. “One cannot help but start wondering as to whether the problem with Air Namibia is a managerial one or otherwise.I have underlined the importance of a national airline but I think that we have to seriously analyse the seemingly insurmountable problems of Air Namibia,” he told the National Assembly during the Budget debate.”I think we can no longer continue pumping money into an institution that persistently incurs financial losses every year.”He suggested that Government set up a task force to investigate Air Namibia to come up with recommendations for a lasting solution to the perennial problem.”I am afraid that the problem may not be a managerial one, but perhaps it is a question of viability,” Nambinga said.In her recent Budget speech, Finance Minister Saara Kuugongelwa-Amadhila revealed that Government had set aside N$153,4 million for Air Namibia this year – nearly five times more than Government pledged to allocate to the airline in its Medium Term Expenditure Framework tabled in Parliament last year.By the end of the next three-year budgetary period, the airline would have cost the State only a few dollars short of N$2 billion since 2000.During the 2005-06 financial year, the airline received N$116 million from the State.Besides the N$33 million Government pledged to the airline last year to implement its turnaround strategy in 2006-07, it will get another N$80 million to lease, maintain and insure its aircraft and a further N$40 million to repay its loans and overdraft in this financial year.In December, Air Namibia took out loans of N$86 million from commercial banks to keep it flying.Nambinga was supported by fellow Swapo backbencher Reggie Diergaardt, who suggested that Air Namibia and its board start looking at strategic alliances with international partners as a way to ease their woes.The DTA’s Johan de Waal said Government had lost control of Air Namibia.”Air Namibia is in control of Government and Cabinet can do nothing about it, expect to continue to throw money at them in order to avert a national scandal,” he said.The DTA shadow finance minister said Government needed to look at an “exit strategy” from Air Namibia because the cost had simply become too much.Terming Air Namibia a “bloodsucker”, he said any refusal to do so would mean the national airline would continue to “suck Government’s blood until it will look like advanced AIDS cases”.”One cannot help but start wondering as to whether the problem with Air Namibia is a managerial one or otherwise.I have underlined the importance of a national airline but I think that we have to seriously analyse the seemingly insurmountable problems of Air Namibia,” he told the National Assembly during the Budget debate.”I think we can no longer continue pumping money into an institution that persistently incurs financial losses every year.”He suggested that Government set up a task force to investigate Air Namibia to come up with recommendations for a lasting solution to the perennial problem.”I am afraid that the problem may not be a managerial one, but perhaps it is a question of viability,” Nambinga said.In her recent Budget speech, Finance Minister Saara Kuugongelwa-Amadhila revealed that Government had set aside N$153,4 million for Air Namibia this year – nearly five times more than Government pledged to allocate to the airline in its Medium Term Expenditure Framework tabled in Parliament last year.By the end of the next three-year budgetary period, the airline would have cost the State only a few dollars short of N$2 billion since 2000.During the 2005-06 financial year, the airline received N$116 million from the State.Besides the N$33 million Government pledged to the airline last year to implement its turnaround strategy in 2006-07, it will get another N$80 million to lease, maintain and insure its aircraft and a further N$40 million to repay its loans and overdraft in this financial year.In December, Air Namibia took out loans of N$86 million from commercial banks to keep it flying.Nambinga was supported by fellow Swapo backbencher Reggie Diergaardt, who suggested that Air Namibia and its board start looking at strategic alliances with international partners as a way to ease their woes.The DTA’s Johan de Waal said Government had lost control of Air Namibia.”Air Namibia is in control of Government and Cabinet can do nothing about it, expect to continue to throw money at them in order to avert a national scandal,” he said.The DTA shadow finance minister said Government needed to look at an “exit strategy” from Air Namibia because the cost had simply become too much.Terming Air Namibia a “bloodsucker”, he said any refusal to do so would mean the national airline would continue to “suck Government’s blood until it will look like advanced AIDS cases”.