Probe hears that defunct DBC still paying out cheques

THE current financial situation of the defunct Development Brigade Corporation will come under the spotlight today, when Interim Board Chairperson Munu Kuyonisa is expected to explain to a presidential commission of inquiry to whom the State entity is still issuing cheques.

Just last month, a cheque for N$282 000 was made out to a local marketing agency. This seemed to bother the commission considerably, and because Kuyonisa is a signatory for DBC cheques, they expected him to explain.But he said the information was not immediately available to him, and he would return with an answer today.As the presidential inquiry hearings drew to a close yesterday, Commission Chairperson Petrus Unengu wanted to know exactly what current debts the company was still incurring and from whom it was still receiving money.The commission queried the control of DBC funds during the current winding-up stage.It heard that the Ministry of Trade and Industry was overseeing some N$5 million that the Government had apportioned through the 2002-03 budget.Commissioner Brian Nalisa said he was “uncomfortable” with this situation and expected that the board would be controlling the funds.”I think the Ministry has overstepped [its position],” said Nalisa.Kuyonisa explained that the submission to Cabinet for funding was made before an interim board was appointed in late 2001 and Government did not want DBC management to control the money.The commission also wanted to know how the board was using funds it received from the rental of houses at Grootfontein.Kuyonisa told the commission that up until the time the houses, shops and plots were handed over to the Ministry of Works a year ago, the money collected was being deposited into the DBC’s bank account.Kuyonisa said he believed the amount of money received was in the region of N$10 000 and that all arrears to that date had been settled.Cabinet had given a directive that the income from these properties be used to pay a loan of more than N$50 million to the Malaysians, but it was later settled by the Ministry of Finance.Kuyonisa said the DBC’s security company, Star Protection Services, also continued to incur expenditure in the form of paying five night watchmen to protect some of its property in the North.This seemed to bother the commission considerably, and because Kuyonisa is a signatory for DBC cheques, they expected him to explain.But he said the information was not immediately available to him, and he would return with an answer today.As the presidential inquiry hearings drew to a close yesterday, Commission Chairperson Petrus Unengu wanted to know exactly what current debts the company was still incurring and from whom it was still receiving money.The commission queried the control of DBC funds during the current winding-up stage.It heard that the Ministry of Trade and Industry was overseeing some N$5 million that the Government had apportioned through the 2002-03 budget.Commissioner Brian Nalisa said he was “uncomfortable” with this situation and expected that the board would be controlling the funds.”I think the Ministry has overstepped [its position],” said Nalisa.Kuyonisa explained that the submission to Cabinet for funding was made before an interim board was appointed in late 2001 and Government did not want DBC management to control the money.The commission also wanted to know how the board was using funds it received from the rental of houses at Grootfontein.Kuyonisa told the commission that up until the time the houses, shops and plots were handed over to the Ministry of Works a year ago, the money collected was being deposited into the DBC’s bank account.Kuyonisa said he believed the amount of money received was in the region of N$10 000 and that all arrears to that date had been settled.Cabinet had given a directive that the income from these properties be used to pay a loan of more than N$50 million to the Malaysians, but it was later settled by the Ministry of Finance.Kuyonisa said the DBC’s security company, Star Protection Services, also continued to incur expenditure in the form of paying five night watchmen to protect some of its property in the North.