N$700m in losses could have been averted – Namcor

The National Petroleum Corporation of Namibia (Namcor) has admitted that the company’s financial losses of N$700 million could have been averted, blaming its “internal control environment” for the situation.

Namcor acting managing director Shiwana Ndeunyema on Thursday said the corporation did not have the internal control environment to respond to external shocks.

The coporation is currently facing major challenges in managing its cash flow due to a troubled 2022.

As of September this year, Namcor’s debt to its suppliers stood at N$1,9 billion.

“We take ownership and full accountability, because the situation could have been averted,” he said.

Ndeunyema was addressing the media, following reports of requests for a government bailout and questions raised about the corporation’s sustainability.

“Ordinarily, when you procure a product from the international market you need some sort of trade desk or hedging instrument so that if there is an abrupt change, you are able to absorb that shock.”

Ndeunyema said the corporation did not have this in place.

“Our responsibility, as a board and management, was really to ensure that we manage the risk,” he said.