No formal bailout submission made to Cabinet – Namcor

The National Petroleum Corporation (Namcor) says while it has engaged the government about the financial situation facing the company, it has not yet made a formal submission for a bailout.

Namcor acting managing director Shiwana Ndeunyema in a statement on Monday said an article published by The Namibian suggesting that the Cabinet has rejected Namcor’s proposal for a financial bailout is factually incorrect and misleading.

“First, while there have been informal and formal engagement with shareholder ministries such as the Ministry of Finance and Public Enterprises and the Ministry of Mines and Energy on the company’s financial health, no formal submission has been presented to the Cabinet,” Ndeunyema said.

The Friday report from The Namibian stated that the parastatal is facing challenges in recovering over N$600 million in outstanding debts while also having a debt of N$1,1 billion to Gunvor Group, an international commodities and oil trading company.

“Like any other entity, Namcor maintains financial commitments with its suppliers and diligently manages debtor and creditor accounts,” Ndeunyema said.

He said Namcor, in consultation with its primary shareholders, has been proactive in managing these hurdles, steering the company on a positive growth trajectory.

“The current challenges we face are being addressed comprehensively and we remain dedicated to the long-term sustainability and success of our operations, with the invaluable input and support of our shareholders,” Ndeunyema said.

The parastatal confirmed that it receives about N$10 million from the energy ministry as a portion of fuel levies collected from motorists but refuted that it merely survives off it.

“We operate within a competitive market and our financial sustainability is achieved through a combination of business operations and commercial activities that do not exclusively rely on government subsidies,” Ndeunyema said.

Namcor also confirmed that the recent disruption in Unleaded Petrol (ULP) supply was caused by low purchase volumes in the market, resulting in stock depletion. In response, the company has advised its retailers and commercial partners to explore alternative suppliers temporarily.

Namcor further said it is not at liberty to disclose key commercially sensitive information, as this could potentially compromise its position in the highly competitive downstream sector.