Namcor board studies maladministration investigation report

The National Petroleum Corporation of Namibia (Namcor)’s board of directors is currently studying an investigation report on the internal maladministration, contributing to the net loss of N.dollars 700 million.

Namcor is currently facing financial hardships in managing its cash flow and stands with a debt of N.dollars 1.9 billion, owed to more than four petroleum suppliers.

Speaking at a media press conference here on Thursday, board chairperson, Jennifer Comalie, said the board appointed an independent consultant in April 2023 to investigate the financial losses the corporation started experiencing in the third quarter of the 2022 financial year and continues to experience, resulting in a request for a government bailout.

Comalie acknowledged the N.dollars 700 million losses are attributed to the breach of internal controls and governance systems, as well as issues related to global market volatility.

‘We needed to understand really where these losses are emanating from and the consultants needed time
to do an analysis of what is really transpiring in the organisation. We are really at that stage now looking at who was involved and in which way they should be held accountable… I can assure you that we are working on that part to make sure that people working with public money and that if there has been a bridging of control we hold people accountable,’ she said.

At the same event, Namcor’s acting managing director, Shiwana Ndeunyema, admitted the corporation did not have internal control to respond to global external shocks such as the COVID-19 pandemic and Russia-Ukraine war, resulting in the corporation being exposed to financial losses.

‘Over and above external shocks were the significant bridges in internal controls in government systems that exacerbated the situation. We take ownership and full accountability because the situation could have been averted,’ he said.

Without specifying the exact figure of the bailout required, Ndeunyema noted that the company has established a recovery plan aimed at
addressing the working capital deficit, coupled with decisive shareholder capital intervention.

‘We have mapped out a couple of scenarios that say, give us this much, this is what we need to cover the working capital deficit,’ he said.

Source: The Namibian Press Agency