Power struggles hit Amazing Kids

SHINOVENE IMMANUEL, TIMO SHIHEPO and SONJA SMITH

WHEN South Africa-based businessman Richard Akwei told managers at Amazing Kids Private School (AKPS) in March this year that Kenandei Tjivikua was taking over the school as acting managing director, some parents saw it as part of the ongoing power struggle with the founder of the institution.

Tjivikua, a former Social Security Commission chief executive, replaced Emma Kakona, the founding owner and de facto administrative boss of the Windhoek-based school, who was placed on special leave.

Some parents have questioned Tjivikua’s appointment, while Kakona’s removal is allegedly linked to a dirty power struggle at the school.

AKPS has over the years ranked among the best performing schools in the country, however, now there are fears that the fights over control and alleged financial irregularities could drag the school down.

The fights for control have entangled the Government Institutions Pension Fund (GIPF) and the Namibia Financial Institutions Supervisory Authority (Namfisa), who are facing allegations of turning a blind eye on alleged irregularities that include claims that pension money was paid to briefcase companies in South Africa using questionable invoices.

This saga started in 2020 when GIPF and Mid-Cap Fund invested N$29 million for Amazing Kids private school. Of this, N$10 million from GIPF was earmarked for the northern branch.

The investment was made through the Namibia Mid-Cap Fund, which is managed by Myrtle Growth Capital, previously known as Musa Capital Namibia.

Former Namfisa manager Marcelina !Gaoses represented Musa Capital Namibia on the school board.

Musa administered the GIPF money invested in the school.

The investment was widely considered an opportunity for the school to grow and spread its wings to northern Namibia.

However, sources at the school said some fund members started clashing with some top managers at the school over the financial dealings of the company. The fights turned into a power struggle that resulted in the ousting of founding owner Kakona in March this year.

Kakona declined to comment for this article.

Auditors have since 2020 raised red flags about the financial affairs of the school.

MAC and Associates wrote a letter to the school board on 17 September 2021, detailing several financial irregularities at the school.

“During the execution of our audit of the 2020 annual financial statements of Amazing Kids Private School and Academy (Pty) Limited, it came to our attention that the transactions or payments were not supported by appropriate and sufficient audit evidence.”

Some of the irregularities included the appointment of Sinclair Capital Advisors – contracted to construct a sports field at the school to the tune of N$4,6 million.

Sinclair was in addition paid N$1,7 million as a consultation fee.

“The payment was made, however, there is no construction that has commenced,” the auditor said.

The report found that the sports field was allegedly done by Artificial Grass Africa, run by Pierre de Groote and not Sinclair.

An email exchange between Groote and the auditors shows that there was no third party involved.

“I planned, cost, supplied and installed the pitch without the use of any third party’s information regarding feasibility studies, technical input and services,” said Groote, responding to the auditors to confirm his services to the school.

“There can therefore be no other entity to make a claim on AKPS for anything to do with my works. In any event, if I had utilised other entities for any reason, they would be making a claim against me, not AKPS.”

It is alleged that N$7,3 million was invested through Musa without the board’s approval.

The auditors claim after roping in Namfisa, they found that Musa Asset Management was not holding any public funds.

The auditors added: “No contact email address and telephone number are reflected on the invoice, which is a bit unusual for transactions of this magnitude.”

GIPF chief executive David Nuyoma told The Namibian over the weekend that the money invested in the school is not lost.

He said GIPF’s post-investment monitoring provides an early warning system to take corrective action through the governance structures in place, which is a continuous process.

“We have been assured that the funds earmarked for expansion of Amazing Kids’ northern campus are safe and not lost, though not yet deployed due to delays.”

He said GIPF, like every pension fund, is compelled by pension fund regulations to invest a minimum of 1,75% up to a maximum of 3,5% in unlisted investments within Namibia.

The regulations further compel pension funds to invest through unlisted investment managers.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.