What is the Avid Company Inquiry all about?

In January, the Social Security Commission, to date not known for securing the best business deals, agrees to give little-known asset management company Avid Investment Corporation N$30 million to invest for four months.

By the end of May, Avid fails to return the SSC’s money and the SSC approaches the High Court to get its money back. Acting Judge Raymond Heathcote decides to help liquidators appointed to take over Avid Investment to trace the money.An inquiry is launched in accordance with the Companies Act.So, what happened to the money? January 26 2005: N$30 million transferred from SSC to Avid.January 28: Avid CEO Lazarus Kandara orders that N$29,5 million be transferred from Avid to Namangol Investments.February – April: Namangol Investments owner Nico Josea transfers millions to South African bank accounts, his wife, brother and several “brothers” from his church who are in a financial bind.The main money men Lazarus Kandara: The elusive, de-facto CEO of Avid Investment Corporation.He is apparently in South Africa working on returning the overdue investment.His lawyer Lucius Murorua informed the court on Wednesday that Kandara is prepared to appear in court by August 23.Nico Josea: CEO of Namangol Investments, to which Kandara transferred N$29,5 million.After testifying on July 26, he is arrested outside the court and charged with fraud or alternatively theft.He remains in custody, but was present in court this week when his “brothers” from the Voice of God Tabernacle testified as to how they spent the more than N$1 million he gave them.Last week, he offered to pay back N$6,3 of the missing money.What happened this week? Kandara’s wife, former President Sam Nujoma and the brothers from the Voice of God Tabernacle.THIS week saw more explosive testimony in the search for the N$30 million the Avid Investment Corporation secured from the Social Security Commission – most notably that from Christofine Kandara, the wife of Avid kingpin Lazarus Kandara.A packed High Court gasped on Wednesday as she recounted dishing out N$40 000 apiece to Works Deputy Minister Paulus Kapia, Ralph Blaauw, Acting Secretary General of the National Youth Council, and Labour Ministry legal advisor Otniel Podewiltz, allegedly at her husband’s instruction.In earlier testimony, Kapia and Podewiltz both denied ever having received a penny as a result of their involvement in Avid.Kapia later called a press conference to once again distance himself from the allegations against him.This week, former President Sam Nujoma was also drawn into the fray of the Avid scandal.In an affidavit submitted to the High Court, former SSC Manager Avril Green maintained that Blaauw had said that the Swapo Party Youth League owned 80 per cent of the shares in Avid, and that Nujoma also had shares – only his were undisclosed.Nujoma, too, called a press conference to deny any involvement and not even knowing about the company before it became embroiled in scandal.He described allegations against him as “ridiculous”.Church connections Three men who collectively received more than N$1 million from Namangol Investments through its owner Nico Josea, were also called to testify how they spent the money.It emerged that Josea is very generous when it comes to his church, the Voice of God Tabernacle, and those “struggling brothers” who need financial help from him.In less than a month, 24-year-old former Namangol CEO Heinrich Helm squanders half a million dollars – without buying any assets – and remains heavily indebted to the bank for two houses and two cars.The name of insurance broker Peter Boonzaaier also surfaces again in relation to the SSC.He, too, received nearly N$500 000 from Josea to pay a myriad of debts.The SSC inquiry two years ago, during which he was accused of receiving millions in kickbacks, ruined his business, he tells the court.THE ‘wasn’t me’s’ Paulus Kapia “I’m just a politician” From the start Swapo Party Youth League leader and Deputy Minister of Works Paulus Kapia has been one of the most controversial characters in the Avid saga.Although listed as a director of the company, and accused by SSC officials of using political muscle to secure the investment, he flatly denies any major involvement in the company.Probably the most difficult to question of those who have appeared in the dock to testify, Kapia evaded many direct responses.He says he did not know Avid boss Lazarus Kandara.Otniel Podewiltz “The SSC knew that Kandara was somewhere, somehow involved” – Podewiltz attempts to shift blame A former Avid director, Podewiltz has admitted to knowing that Lazarus Kandara was involved in Avid, but denies receiving any money from the company.Christofine Kandara, Lazarus’ wife, however told the court a different story this week, maintaining that she personally gave Podewiltz N$40 000 on her husband’s instruction.Podewiltz was the legal counsel during the inquiry that questioned Kandara’s dubious dealings with the SSC.The Avid/SSC deal had not yet been concluded when he resigned as director, he said.Inez /Gâses “The administrative side of the company was never done” As Avid’s Board Chairperson she became the second witness to testify at the start of the inquiry.She is also a cousin of Avid Kingpin Lazarus Kandara.She knew of the SSC investment, but didn’t know about middleman Nico Josea.She said she thought all the money would go to South African trader Alan Rosenberg.Sharon Blaauw She is the wife of Acting National Youth Council Secretary General Ralph Blaauw.Although she is a director of Avid, it appears her husband has more involvement in the company.She claimed total ignorance in court and says she never attended a board meeting because she was “too busy”.Kandara, she alleges, invited her to become a director of Avid.She says she would not have recognised him again, were it not for photos of him the media.Ralph Blaauw “People must stop telling these lies” A former Swapo MP, he is said to have approached Kapia “as a comrade” to become a director of Avid.He holds no formal position within Avid, but his name has cropped up on more than one occasion in the testimony of others.SSC Manager Avril Green has implicated him in a court affidavit as having said that former President Sam Nujoma holds undisclosed shares in Avid and the Swapo Party Youth League is the majority shareholder.At a press conference yesterday, he denied all the allegations.Late-night dealings This week, SSC Board Chairman Frans Kapofi alleged that the Special Advisor in the Office of the Prime Minister, Matthew Gowaseb, approached him late one night and tried to offer him a bribe if he would grant Kandara an extension in returning the SSC money.The next day, Gowaseb asked the court to allow him to “set the record straight”, saying that no bribe was involved, and that as a public servant he was obliged to help any citizen who approached him for help on Government matters.He maintains there was nothing sinister about their meeting.What’s next? The hearing continues on Wednesday, when Christofine Kandara is to return to the witness stand.Others scheduled to testify next week include: Ralph Blaauw, Mathias Shiweda (also said to have netted N$40 000 as a one-time director of Avid), Joel Kamaitunguavi (Director of Namangol who also benefited from Josea’s “generosity”), and Namfisa CEO Frans van Rensburg.Kapia has requested to take the stand again to “clear his name”.Star witness, Lazarus Kandara, is only scheduled to appear on August 23 .Acting Judge Raymond Heathcote decides to help liquidators appointed to take over Avid Investment to trace the money.An inquiry is launched in accordance with the Companies Act. So, what happened to the money? January 26 2005: N$30 million transferred from SSC to Avid.January 28: Avid CEO Lazarus Kandara orders that N$29,5 million be transferred from Avid to Namangol Investments.February – April: Namangol Investments owner Nico Josea transfers millions to South African bank accounts, his wife, brother and several “brothers” from his church who are in a financial bind.The main money men Lazarus Kandara: The elusive, de-facto CEO of Avid Investment Corporation.He is apparently in South Africa working on returning the overdue investment.His lawyer Lucius Murorua informed the court on Wednesday that Kandara is prepared to appear in court by August 23.Nico Josea: CEO of Namangol Investments, to which Kandara transferred N$29,5 million.After testifying on July 26, he is arrested outside the court and charged with fraud or alternatively theft.He remains in custody, but was present in court this week when his “brothers” from the Voice of God Tabernacle testified as to how they spent the more than N$1 million he gave them.Last week, he offered to pay back N$6,3 of the missing money.What happened this week? Kandara’s wife, former President Sam Nujoma and the brothers from the Voice of God Tabernacle.THIS week saw more explosive testimony in the search for the N$30 million the Avid Investment Corporation secured from the Social Security Commission – most notably that from Christofine Kandara, the wife of Avid kingpin Lazarus Kandara.A packed High Court gasped on Wednesday as she recounted dishing out N$40 000 apiece to Works Deputy Minister Paulus Kapia, Ralph Blaauw, Acting Secretary General of the National Youth Council, and Labour Ministry legal advisor Otniel Podewiltz, allegedly at her husband’s instruction.In earlier testimony, Kapia and Podewiltz both denied ever having received a penny as a result of their involvement in Avid.Kapia later called a press conference to once again distance himself from the allegations against him.This week, former President Sam Nujoma was also drawn into the fray of the Avid scandal.In an affidavit submitted to the High Court, former SSC Manager Avril Green maintained that Blaauw had said that the Swapo Party Youth League owned 80 per cent of the shares in Avid, and that Nujoma also had shares – only his were undisclosed.Nujoma, too, called a press conference to deny any involvement and not even knowing about the company before it became embroiled in scandal.He described allegations against him as “ridiculous”.Church connections Three men who collectively received more than N$1 million from Namangol Investments through its owner Nico Josea, were also called to testify how they spent the money.It emerged that Josea is very generous when it comes to his church, the Voice of God Tabernacle, and those “struggling brothers” who need financial help from him.In less than a month, 24-year-old former Namangol CEO Heinrich Helm squanders half a million dollars – without buying any assets – and remains heavily indebted to the bank for two houses and two cars.The name of insurance broker Peter Boonzaaier also surfaces again in relation to the SSC.He, too, received nearly N$500 000 from Josea to pay a myriad of debts.The SSC inquiry two years ago, during which he was accused of receiving millions in kickbacks, ruined his business, he tells the court.THE ‘wasn’t me’s’ Paulus Kapia “I’m just a politician” From the start Swapo Party Youth League leader and Deputy Minister of Works Paulus Kapia has been one of the most controversial characters in the Avid saga.Although listed as a director of the company, and accused by SSC officials of using political muscle to secure the investment, he flatly denies any major involvement in the company.Probably the most difficult to question of those who have appeared in the dock to testify, Kapia evaded many direct responses.He says he did not know Avid boss Lazarus Kandara.Otniel Podewiltz “The SSC knew that Kandara was somewhere, somehow involved” – Podewiltz attempts to shift blame A former Avid director, Podewiltz has admitted to knowing that Lazarus Kandara was involved in Avid, but denies receiving any money from the company.Christofine Kandara, Lazarus’ wife, however told the court a different story this week, maintaining that she personally gave Podewiltz N$40 000 on her husband’s instruction.Podewiltz was the legal counsel during the inquiry that questioned Kandara’s dubious dealings with the SSC.The Avid/SSC deal had not yet been concluded when he resigned as director, he said.Inez /Gâses “The administrative side of the company was never done” As Avid’s Board Chairperson she became the second witness to testify at the start of the inquiry.She is also a cousin of Avid Kingpin Lazarus Kandara.She knew of the SSC investment, but didn’t know about middleman Nico Josea.She said she thought all the money would go to South African trader Alan Rosenberg. Sharon Blaauw She is the wife of Acting National Youth Council Secretary General Ralph Blaauw.Although she is a director of Avid, it appears her husband has more involvement in the company.She claimed total ignorance in court and says she never attended a board meeting because she was “too busy”.Kandara, she alleges, invited her to become a director of Avid.She says she would not have recognised him again, were it not for photos of him the media.Ralph Blaauw “People must stop telling these lies” A former Swapo MP, he is said to have approached Kapia “as a comrade” to become a director of Avid.He holds no formal position within Avid, but his name has cropped up on more than one occasion in the testimony of others.SSC Manager Avril Green has implicated him in a court affidavit as having said that former President Sam Nujoma holds undisclosed shares in Avid and the Swapo Party Youth League is the majority shareholder.At a press conference yesterday, he denied all the allegations.Late-night dealings This week, SSC Board Chairman Frans Kapofi alleged that the Special Advisor in the Office of the Prime Minister, Matthew Gowaseb, approached him late one night and tried to offer him a bribe if he would grant Kandara an extension in returning the SSC money.The next day, Gowaseb asked the court to allow him to “set the record straight”, saying that no bribe was involved, and that as a public servant he was obliged to help any citizen who approached him for help on Government matters.He maintains there was nothing sinister about their meeting.What’s next? The hearing continues on Wednesday, when Christofine Kandara is to return to the witness stand.Others scheduled to testify next week include: Ralph Blaauw, Mathias Shiweda (also said to have netted N$40 000 as a one-time director of Avid), Joel Kamaitunguavi (Director of Namangol who also benefited from Josea’s “generosity”), and Namfisa CEO Frans van Rensburg.Kapia has requested to take the stand again to “clear his name”.Star witness, Lazarus Kandara, is only scheduled to appear on August 23 .