Turnaround plan for Nepru

THE Namibian Economic Policy Research Unit (Nepru) says some development partners have pledged their support to help turn around the ailing think-tank.

The Board of Trustees said last week that recent setbacks would soon be something of the past as a new financial management system was put in place and an audit for the 2005/6 financial year was expected to start. “Nepru is in contact with all stakeholders to pave the way forward,” said Board chairman Zed Ngavirue.He pointed out that recent media reports had some inaccuracies but did not point out specific mistakes.The Swedish International Development Agency (Sida) recently demanded that Nepru pay back N$1 million that Namibia’s economic research organisation had mismanaged over the past several years.Sida threatened to take legal action against Nepru if the money was not repaid by May 12.Former Nepru Director Dirk Hansohm earlier confirmed to The Namibian that the organisation had not paid Pay As You Earn (PAYE) taxes deducted from employees for two years until last year, and that it had also not submitted tax returns during the same period.The financial pinch also meant the organisation had not paid out 13th cheques in December to employees in accordance with their conditions of employment.The financial quagmire has been brought to the attention of donors, President Hifikepunye Pohamba and Prime Minister Nahas Angula.Sida issued the demand in a statement posted on its website on April 26, following a forensic audit by PriceWaterhouseCoopers (PWC).”The Namibian Economic Policy Research Unit (Nepru), a non-governmental organisation, has mismanaged some Sida funds.Sida is now demanding that Nepru pay back SEK1,2 million,” said the statement.”Sida has supported Nepru since 2002 in developing an economic analysis model for assessing the socio-economic impact of political decisions on income distribution and poverty reduction in the country.”Nepru has, however, used Sida funds to pay salaries, rent and other general operating costs, which [are] not covered by the agreement.”Dag Sundelin, the Deputy Head of the Swedish Embassy in Namibia, said: “Nepru’s actions are unacceptable… We have now asked Nepru to show, by May 12 at the latest, how the money will be repaid.”Sida said the audit report “reveals how the incorrect transactions took place and which people at Nepru authorised them.”Hansohm has declined to comment and referred queries to the board chairman, Dr Zedekia Ngavirue.Repeated attempts to reach Ngavirue for comment have proved futile.”It is now up to Nepru itself to find a solution for repaying the Swedish funds.We hope that this can be resolved in a way that allows the completion of a project that is important for Namibia,” said Sundelin.Nepru is facing demands for payment from several institutions, including its auditors PWC and the banks.”Nepru is in contact with all stakeholders to pave the way forward,” said Board chairman Zed Ngavirue.He pointed out that recent media reports had some inaccuracies but did not point out specific mistakes.The Swedish International Development Agency (Sida) recently demanded that Nepru pay back N$1 million that Namibia’s economic research organisation had mismanaged over the past several years.Sida threatened to take legal action against Nepru if the money was not repaid by May 12.Former Nepru Director Dirk Hansohm earlier confirmed to The Namibian that the organisation had not paid Pay As You Earn (PAYE) taxes deducted from employees for two years until last year, and that it had also not submitted tax returns during the same period.The financial pinch also meant the organisation had not paid out 13th cheques in December to employees in accordance with their conditions of employment.The financial quagmire has been brought to the attention of donors, President Hifikepunye Pohamba and Prime Minister Nahas Angula.Sida issued the demand in a statement posted on its website on April 26, following a forensic audit by PriceWaterhouseCoopers (PWC).”The Namibian Economic Policy Research Unit (Nepru), a non-governmental organisation, has mismanaged some Sida funds.Sida is now demanding that Nepru pay back SEK1,2 million,” said the statement.”Sida has supported Nepru since 2002 in developing an economic analysis model for assessing the socio-economic impact of political decisions on income distribution and poverty reduction in the country.”Nepru has, however, used Sida funds to pay salaries, rent and other general operating costs, which [are] not covered by the agreement.”Dag Sundelin, the Deputy Head of the Swedish Embassy in Namibia, said: “Nepru’s actions are unacceptable… We have now asked Nepru to show, by May 12 at the latest, how the money will be repaid.”Sida said the audit report “reveals how the incorrect transactions took place and which people at Nepru authorised them.”Hansohm has declined to comment and referred queries to the board chairman, Dr Zedekia Ngavirue.Repeated attempts to reach Ngavirue for comment have proved futile.”It is now up to Nepru itself to find a solution for repaying the Swedish funds.We hope that this can be resolved in a way that allows the completion of a project that is important for Namibia,” said Sundelin.Nepru is facing demands for payment from several institutions, including its auditors PWC and the banks.

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