PG’s office mulls B-1 City project decision

THE Office of the Prosecutor-General has confirmed receipt the docket compiled by the Anti-Corruption Commission on its investigation into the failed B-1 City project, built with Road Contractor Company (RCC) money in 2006.

“Yes, we received the docket last week and will be taking a decision [to prosecute] as soon as we have reviewed the case,” possibly in about two weeks’ time, said a top official, who requested anonymity out of fear of being targeted. Former RCC CEO Kelly Nghixulifwa was suspended on August 23 2006 the year after it emerged that he used RCC money to pay for Erf 10485, failed to register a notarial bond over it and had not been open about it to the RCC Board of Directors.Erf 10485, situated next to Swapo House in Katutura, is owned by /Ai//Gams Engineering, which is controlled or owned by David Imbili (30 per cent), Hafeni Nghinamwaani (30 per cent), Anna Ndoroma (30 per cent) and the senior partners of local auditors BDO Spencer Steward, viz Rochele and Lorna Cilliers (10 per cent).All of them held their interest in /Ai//Gams either via family trusts or third companies.Nghixulifwa used N$6,8 million of RCC’s line of credit with Bank Windhoek to pay for the property (sold initially for N$3,9 million to Imbili), and to authorise expenditure of an estimated N$12-15 million on construction before a halt was called to the N$54 million development in the wake of a forensic investigation.Nghixulifwa was charged with eight counts of dishonesty, gross negligence, failure to adhere to RCC rules and recklessness, but resigned before his disciplinary hearing was completed.In the wake of Nghixulifwa’s departure, the GM: Finance and Administration, Rudi Saunderson, and GM: Human Resources, Brian Nalisa, also made sudden exits as the RCC had to re-state its financial accounts, which made it clear that the company had made a major loss instead of a profit.Nghixulifwa has been the only one to feel the pain: two months ago, two local banks obtained judgements against him and his wife in which their Windhoek and Walvis Bay properties were declared executable.Nalisa went on to run a music distribution business (some of which branches have been closed) and nightclub (Club Pamodzi, which subsequently folded), while Saunderson found new employment at NamWater.Government last year had to inject another N$77 million into the struggling parastatal under Acting CEO Noks Katjiuangua, who resigned in frustration last year to “pursue private interests”, he said earlier this week.The ACC investigation, led by former top cop William Lloyd, is believed to have focused on Nghixulifwa’s alleged private interests in the B-1 City development, now a weed-infested and half-built mausoleum.B-1 City was to become a 4 000 square metre shopping complex with a filling station and taxi rank on what was probably the most valuable piece of commercial real estate in Windhoek at the time because of its strategic location, situated at the intersection of the B-1 trunk road and Independence Avenue.Imbili last year fended off a High Court application by the RCC in which the roads parastatal demanded he immediately settle all debts incurred on /Ai//Gams’ behalf by Nghixulifwa.Imbili, the son-in-law of former President Sam Nujoma, insisted that /Ai//Gams would only pay once the project was completed.The ACC investigation is believed to have centered on the relationship between Nghixulifwa and /Ai//Gams in general, and on the specific relationship between Ndoroma and the former RCC CEO.Both have denied that were any conflicts of interests that could have led Nghixulifwa risking his N$1 million per annum job.New RCC CEO Tendai Kapumha recently issued a brief statement in which he declined to comment.”Unfortunately we can’t disclose the specifics of the case as the matter is sub judice as it is before the courts of law,” he stated.But he made it clear that the RCC was getting out of the real estate business and would concentrate on its road and rail construction business.Former RCC CEO Kelly Nghixulifwa was suspended on August 23 2006 the year after it emerged that he used RCC money to pay for Erf 10485, failed to register a notarial bond over it and had not been open about it to the RCC Board of Directors.Erf 10485, situated next to Swapo House in Katutura, is owned by /Ai//Gams Engineering, which is controlled or owned by David Imbili (30 per cent), Hafeni Nghinamwaani (30 per cent), Anna Ndoroma (30 per cent) and the senior partners of local auditors BDO Spencer Steward, viz Rochele and Lorna Cilliers (10 per cent).All of them held their interest in /Ai//Gams either via family trusts or third companies. Nghixulifwa used N$6,8 million of RCC’s line of credit with Bank Windhoek to pay for the property (sold initially for N$3,9 million to Imbili), and to authorise expenditure of an estimated N$12-15 million on construction before a halt was called to the N$54 million development in the wake of a forensic investigation.Nghixulifwa was charged with eight counts of dishonesty, gross negligence, failure to adhere to RCC rules and recklessness, but resigned before his disciplinary hearing was completed.In the wake of Nghixulifwa’s departure, the GM: Finance and Administration, Rudi Saunderson, and GM: Human Resources, Brian Nalisa, also made sudden exits as the RCC had to re-state its financial accounts, which made it clear that the company had made a major loss instead of a profit.Nghixulifwa has been the only one to feel the pain: two months ago, two local banks obtained judgements against him and his wife in which their Windhoek and Walvis Bay properties were declared executable.Nalisa went on to run a music distribution business (some of which branches have been closed) and nightclub (Club Pamodzi, which subsequently folded), while Saunderson found new employment at NamWater.Government last year had to inject another N$77 million into the struggling parastatal under Acting CEO Noks Katjiuangua, who resigned in frustration last year to “pursue private interests”, he said earlier this week.The ACC investigation, led by former top cop William Lloyd, is believed to have focused on Nghixulifwa’s alleged private interests in the B-1 City development, now a weed-infested and half-built mausoleum.B-1 City was to become a 4 000 square metre shopping complex with a filling station and taxi rank on what was probably the most valuable piece of commercial real estate in Windhoek at the time because of its strategic location, situated at the intersection of the B-1 trunk road and Independence Avenue.Imbili last year fended off a High Court application by the RCC in which the roads parastatal demanded he immediately settle all debts incurred on /Ai//Gams’ behalf by Nghixulifwa.Imbili, the son-in-law of former President Sam Nujoma, insisted that /Ai//Gams would only pay once the project was completed.The ACC investigation is believed to have centered on the relationship between Nghixulifwa and /Ai//Gams in general, and on the specific relationship between Ndoroma and the former RCC CEO.Both have denied that were any conflicts of interests that could have led Nghixulifwa risking his N$1 million per annum job.New RCC CEO Tendai Kapumha recently issued a brief statement in which he declined to comment.”Unfortunately we can’t disclose the specifics of the case as the matter is sub judice as it is before the courts of law,” he stated.But he made it clear that the RCC was getting out of the real estate business and would concentrate on its road and rail construction business.