SSC wants its N$30 million

THE Social Security Commission (SSC) is expected to launch an urgent High Court application this week as it fears it might lose N$30 million placed with a start-up asset management firm linked to the Swapo Party Youth League.

Insight Namibia magazine will report in its August issue that Avid Investments, led by the Deputy Minister of Works, Transport and Communication and Swapo Youth Secretary, Paulus Kapia, has failed to repay the money more than two months after the investment was deemed to have matured. Kapia is viewed as playing a key role in soliciting the N$30 million investment for Avid.Yesterday, the Deputy Minister said he was unaware of the impending SSC legal action and that he would follow it up with “colleagues” when he is back in town this week.Avid Investments is the brainchild of Lazarus Kandara and Fritz Jacobs.Jacobs was fingered in dubious investment deals with the SSC four years ago; Jacobs is one of Namibia’s promising black executives who resigned as head of the Navachab gold mine at Karibib during an investigation into other deals placed with Avid.Last week, the Social Security Commission was still waiting for the return of the N$30 million and the promised interest.Insight has learnt that the SSC board of commissioners last week authorised management to take legal action against Avid, including an urgent application for a liquidation order and the freezing of company assets.A notice has already been sent out to the company directors.This week’s application is expected to be the first of several attempts to recover the public funds, which Avid has so far been unable to repay or disclose where it had taken the money.Speculation is now rife about the possible suspension of the SSC Chief Executive Officer, Tuli Hiveluah, and General Manager for Finance, Avril Green, who recommended Avid for the CEO’s signature.Green has so far succeeded in pushing disciplinary charges against a subordinate, Gideon Mulder, who was fired from the SSC as a result.SSC board Chairman Frans Kapofi declined to comment yesterday, saying only that management had “taken steps”.He would not go into “rumours” about the suspension of the top officials.Following reports about the Avid deal in Insight magazine, the SSC last month admitted that it had placed the N$30 million investment.It declined to give details about placing public funds with the newcomer in the money market.The SSC dismissed Insight reports that it had put N$30 million in Avid, which made a commitment to reinvest the money.Corporate Affairs Officer Rino Muranda said yesterday he was unaware whether the money had been repaid or not.Muranda also denied “some media reports that the SSC is keeping the public in the dark about how their funds are administered” and that it “undertakes to report about the performance of its investment, including the Avid investment”, in its annual report next year.Hiveluah, the SSC CEO, said yesterday he was unable to comment because he was on leave last week and could only make a statement when he was back in office on Monday.Avid was set up in the middle of last year, but it became prominent earlier this year when Fritz Jacobs, then Navachab’s Managing Director, resigned at 24 hours’ notice.At the time, Jacobs was said to have approved an investment of N$10 million of Navachab’s money with Avid and another asset management company called Prowealth.He resigned after the mine’s owners, AngloGold Ashanti, began probing his decisions.Both the mining giant and Jacobs said the resignation was for personal reasons.Jacobs is listed in Avid documents as having been instrumental in setting it up.He has consistently denied any involvement.Avid has strong ties with the Swapo Youth League, though it is still unclear whether the ruling party’s youth wing itself has shares in the company.Swapo Youth League Secretary Kapia is a director.So is Sharon Blaauw, wife of Swapo Youth League leader and former ruling party lawmaker Ralph Blaauw.Kapia said several months ago that he had resigned as director but he is still on the company’s books.Yesterday, the Deputy Minister said he was unaware of the latest SSC legal action and that he would follow it up with his “colleagues”.Sources say Kapia and other Swapo youth leaders held meetings with SSC officials to solicit the funds.”Their role was interpreted to mean that Avid not only had the political backing of State House and Swapo, but that Kapia was putting pressure on the SSC,” said an official who received reports on the dealings.Avid’s company secretary says lawyer Otniel Podewiltz, who led an inquiry into shady investment deals at the SSC two years ago, and chair Inez /Gâses have resigned as directors of Avid.Podewiltz, who joined Avid in November last year, quit at the beginning of this year, distancing himself totally from the company.It is not clear who owns Avid.The company secretary said the shareholding still had to be finalised.Most questionable is the involvement of Lazarus Kandara, who was exposed as having convinced the SSC to take part in dubious investment deals in 2001.His name is missing from official company files although he was involved in the day-to-day running of the firm.The SSC has said Avid directors have assured them “upon enquiry during the initial stages, contrary to media reports” that “a certain Mr Kandara” was not part of the company.However, Insight confirmed with Avid’s offices in March that Kandara was, at least at the time, the company’s chief executive.It is unclear why his involvement was kept a secret.Meanwhile, the SSC has confirmed that its investment manager, Mulder, has been fired.The parastatal did not say whether the Avid investment had led to Mulder’s dismissal, merely stating that he was found guilty “on charges ranging from gross negligence of duties to gross insubordination”.The corporation did not respond to questions on whether other people involved in approving the investment with Avid, including Mulder’s boss, finance general manager Avril Green, and other senior officials may face disciplinary charges.* Tangeni Amupadhi is a journalist with Insight magazineKapia is viewed as playing a key role in soliciting the N$30 million investment for Avid.Yesterday, the Deputy Minister said he was unaware of the impending SSC legal action and that he would follow it up with “colleagues” when he is back in town this week.Avid Investments is the brainchild of Lazarus Kandara and Fritz Jacobs.Jacobs was fingered in dubious investment deals with the SSC four years ago; Jacobs is one of Namibia’s promising black executives who resigned as head of the Navachab gold mine at Karibib during an investigation into other deals placed with Avid.Last week, the Social Security Commission was still waiting for the return of the N$30 million and the promised interest. Insight has learnt that the SSC board of commissioners last week authorised management to take legal action against Avid, including an urgent application for a liquidation order and the freezing of company assets.A notice has already been sent out to the company directors.This week’s application is expected to be the first of several attempts to recover the public funds, which Avid has so far been unable to repay or disclose where it had taken the money.Speculation is now rife about the possible suspension of the SSC Chief Executive Officer, Tuli Hiveluah, and General Manager for Finance, Avril Green, who recommended Avid for the CEO’s signature.Green has so far succeeded in pushing disciplinary charges against a subordinate, Gideon Mulder, who was fired from the SSC as a result.SSC board Chairman Frans Kapofi declined to comment yesterday, saying only that management had “taken steps”.He would not go into “rumours” about the suspension of the top officials.Following reports about the Avid deal in Insight magazine, the SSC last month admitted that it had placed the N$30 million investment.It declined to give details about placing public funds with the newcomer in the money market.The SSC dismissed Insight reports that it had put N$30 million in Avid, which made a commitment to reinvest
the money.Corporate Affairs Officer Rino Muranda said yesterday he was unaware whether the money had been repaid or not.Muranda also denied “some media reports that the SSC is keeping the public in the dark about how their funds are administered” and that it “undertakes to report about the performance of its investment, including the Avid investment”, in its annual report next year.Hiveluah, the SSC CEO, said yesterday he was unable to comment because he was on leave last week and could only make a statement when he was back in office on Monday.Avid was set up in the middle of last year, but it became prominent earlier this year when Fritz Jacobs, then Navachab’s Managing Director, resigned at 24 hours’ notice.At the time, Jacobs was said to have approved an investment of N$10 million of Navachab’s money with Avid and another asset management company called Prowealth.He resigned after the mine’s owners, AngloGold Ashanti, began probing his decisions.Both the mining giant and Jacobs said the resignation was for personal reasons.Jacobs is listed in Avid documents as having been instrumental in setting it up.He has consistently denied any involvement.Avid has strong ties with the Swapo Youth League, though it is still unclear whether the ruling party’s youth wing itself has shares in the company.Swapo Youth League Secretary Kapia is a director.So is Sharon Blaauw, wife of Swapo Youth League leader and former ruling party lawmaker Ralph Blaauw.Kapia said several months ago that he had resigned as director but he is still on the company’s books.Yesterday, the Deputy Minister said he was unaware of the latest SSC legal action and that he would follow it up with his “colleagues”.Sources say Kapia and other Swapo youth leaders held meetings with SSC officials to solicit the funds.”Their role was interpreted to mean that Avid not only had the political backing of State House and Swapo, but that Kapia was putting pressure on the SSC,” said an official who received reports on the dealings.Avid’s company secretary says lawyer Otniel Podewiltz, who led an inquiry into shady investment deals at the SSC two years ago, and chair Inez /Gâses have resigned as directors of Avid.Podewiltz, who joined Avid in November last year, quit at the beginning of this year, distancing himself totally from the company.It is not clear who owns Avid.The company secretary said the shareholding still had to be finalised.Most questionable is the involvement of Lazarus Kandara, who was exposed as having convinced the SSC to take part in dubious investment deals in 2001.His name is missing from official company files although he was involved in the day-to-day running of the firm.The SSC has said Avid directors have assured them “upon enquiry during the initial stages, contrary to media reports” that “a certain Mr Kandara” was not part of the company.However, Insight confirmed with Avid’s offices in March that Kandara was, at least at the time, the company’s chief executive.It is unclear why his involvement was kept a secret.Meanwhile, the SSC has confirmed that its investment manager, Mulder, has been fired.The parastatal did not say whether the Avid investment had led to Mulder’s dismissal, merely stating that he was found guilty “on charges ranging from gross negligence of duties to gross insubordination”.The corporation did not respond to questions on whether other people involved in approving the investment with Avid, including Mulder’s boss, finance general manager Avril Green, and other senior officials may face disciplinary charges.* Tangeni Amupadhi is a journalist with Insight magazine