Cash used to hide SSC scams

LAST year’s inquiry into the Social Security Commission (SSC) has charged that money laundering, in huge cash transactions, was used to cover trails of earnings from questionable investments, according to a report that is yet to be made public.

The commission of inquiry has recommended that some people, believed to have been involved in an intricate web that benefited from investment deals, be charged with corruption. The Namibian has seen parts of the report of the Presidential Commission of Inquiry into the Activities, Affairs, Management and Operations of the SSC, which makes damning findings about individuals as well as institutions, and that laws were inadequate to clamp down on corruption.The inquiry recommended that Police investigate charges of corruption and perjury against former SSC Chairman Gerson Hinda, businessmen Manfred and Issy Namaseb, who are brothers, and insurance broker Pieter Boonzaaier.They have all dismissed suggestions of wrongdoing.The recommendation stems from commissions that Boonzaaier received after handling multimillion dollar investments from the SSC through Channel Life insurance firm.Boonzaaier in 2001 paid about N$2 million by cheque to Manfred Namaseb, which the two explained at public hearings last year as payment for shares into Clarion Investments, a company owned by the Namaseb brothers.The commission found that Clarion Investments has been dormant since its inception, thereby casting doubt on the socalled share deal, which Boonzaaier has never received “The commission also doubts the basis upon which the valuation was conducted,” the report reads at one stage, adding that “the share sale transaction and the acknowledgement of debt are fictitious and were constructed to conceal the true purpose for the movement of funds from Mr Boonzaaier to Mr MW Namaseb.”In addition, the commission pointed out the Manfred Namaseb then withdrew N$1,3 million from his bank account, which he told the inquiry he had used for his farm, but has failed to provide documentation to corroborate his evidence during the public hearings.”The Commission is of the view that the money was withdrawn in order to conceal its future passage.”In the report, the commission of inquiry takes issue with the testimony of Boonzaaier and the Namaseb brothers who denied “knowing Mr Hinda on a person level or having any business dealings with him pertaining to the SSC investments”.But the commission said it received information that Hinda and the Namaseb brothers “arranged for the SSC investments to be placed through” Boonzaaier and “subsequently shared in commission” that he earned.The Presidential inquiry found through its investigations that Hinda and the Namasebs met “clandestinely” to discuss SSC investments “inter alia, at hotels in Windhoek” and used prepaid (Tango) cell-phone number “specifically acquired for that purpose” “All implicated persons denied having engaged in such meetings,” the report states.However, the commission of inquiry has obtained an affidavit from a local businessman, who confirmed that he met the four at a local hotel in the last quarter of 2001.Hinda said last night that the allegations were “lies, devoid of any truth” and that he would “welcome” prosecution as it will give him access to the report.He questioned why anyone will have “clanderstine” meetings at hotels.”It’s one thing for people to make allegations.It’s another to prove them,” said Hinda.Further probes uncovered a credit card transaction by Boonzaaier at the hotel “at the relevant time”.The report claims it had been given information that the Managing Director of Channel Life, Lennie Louw, and senior manager Gillie Vermeulen, had been informed about “irregularities” concerning Boonzaaier’s SSC investments but ignored the warnings.Both Vermeulen and Louw denied the accusation during the hearing.Louw told The Namibian yesterday that he preferred not to comment on an a report that was still not public, but viewed the “allegations in a very serious light because we will never ever conduct our business affairs in such a manner”.Manfred Namaseb and his younger brother, Issy, also declined to comment.Issy Namaseb said he would not say anything about a document he had not seen, while Manfred Namaseb said the report was still not public and therefore “illegal”.SSC Chief Executive Officer Tuli Hiveluah said the parastatal’s board discussed the report for the first time this month, which was released at the beginning of last year.He declined to comment about what steps were being taken.The Police confirmed that “a case” had been registered, but would give no details.Boonzaaier could not be reached for comment.The Namibian has seen parts of the report of the Presidential Commission of Inquiry into the Activities, Affairs, Management and Operations of the SSC, which makes damning findings about individuals as well as institutions, and that laws were inadequate to clamp down on corruption.The inquiry recommended that Police investigate charges of corruption and perjury against former SSC Chairman Gerson Hinda, businessmen Manfred and Issy Namaseb, who are brothers, and insurance broker Pieter Boonzaaier.They have all dismissed suggestions of wrongdoing.The recommendation stems from commissions that Boonzaaier received after handling multimillion dollar investments from the SSC through Channel Life insurance firm.Boonzaaier in 2001 paid about N$2 million by cheque to Manfred Namaseb, which the two explained at public hearings last year as payment for shares into Clarion Investments, a company owned by the Namaseb brothers.The commission found that Clarion Investments has been dormant since its inception, thereby casting doubt on the socalled share deal, which Boonzaaier has never received “The commission also doubts the basis upon which the valuation was conducted,” the report reads at one stage, adding that “the share sale transaction and the acknowledgement of debt are fictitious and were constructed to conceal the true purpose for the movement of funds from Mr Boonzaaier to Mr MW Namaseb.”In addition, the commission pointed out the Manfred Namaseb then withdrew N$1,3 million from his bank account, which he told the inquiry he had used for his farm, but has failed to provide documentation to corroborate his evidence during the public hearings.”The Commission is of the view that the money was withdrawn in order to conceal its future passage.”In the report, the commission of inquiry takes issue with the testimony of Boonzaaier and the Namaseb brothers who denied “knowing Mr Hinda on a person level or having any business dealings with him pertaining to the SSC investments”.But the commission said it received information that Hinda and the Namaseb brothers “arranged for the SSC investments to be placed through” Boonzaaier and “subsequently shared in commission” that he earned.The Presidential inquiry found through its investigations that Hinda and the Namasebs met “clandestinely” to discuss SSC investments “inter alia, at hotels in Windhoek” and used prepaid (Tango) cell-phone number “specifically acquired for that purpose” “All implicated persons denied having engaged in such meetings,” the report states.However, the commission of inquiry has obtained an affidavit from a local businessman, who confirmed that he met the four at a local hotel in the last quarter of 2001.Hinda said last night that the allegations were “lies, devoid of any truth” and that he would “welcome” prosecution as it will give him access to the report.He questioned why anyone will have “clanderstine” meetings at hotels.”It’s one thing for people to make allegations.It’s another to prove them,” said Hinda.Further probes uncovered a credit card transaction by Boonzaaier at the hotel “at the relevant time”.The report claims it had been given information that the Managing Director of Channel Life, Lennie Louw, and senior manager Gillie Vermeulen, had been informed about “irregularities” concerning Boonzaaier’s SSC investments but ignored the warnings.Both Vermeulen and Louw denied the accusation during the hearing.Louw told The Namibian yesterday that he preferred not to comment on an a report that was still not public, but viewed the “allegations in a very serious light because we will never ever conduct our business affairs in such a manner”.Manfred Namaseb and his younger brother, Issy, also declined to comment.Issy Namaseb said he would not say anything about a document he had not seen, while Manfred Namaseb said the report was still not public and therefore “illegal”.SSC Chief Executive Officer Tuli Hiveluah said the parastatal’s board discussed the report for the first time this month, which was released at the beginning of last year.He declined to comment about what steps were being taken.The Police confirmed that “a case” had been registered, but would give no details.Boonzaaier could not be reached for comment.