Nam firm tender for Covid-19 tests raises eyebrows

A NAMIBIAN company, Jaji Investments CC, is implicated in a messy Covid-19 test kit supply tender in Zimbabwe worth US$ 66 375 (approximately N$1,1 million).

The company was registered in 2015 by a Zimbabwean doctor, Prince Mushaninga, and his partners, and was reportedly hand-picked ahead of others in the tender.

Operating as a briefcase company in Namibia, Jaji Investments is accused of using ruling party political connections in Zimbabwe to waiver tender procedures and score ahead of Zimbabwean companies.

Documents seen by The Namibian show that Jaji Investments CC supplied 4500 rapid Covid-19 test kits to Zimbabwe from Namibia despite Namibian laws not recognising the use of rapid tests locally.

Rumours of bypassing tax

Documentation from inland revenue show Jaji Investments has been declaring zero-rated tax with the Ministry of Finance under the pretext that they are not operating in Namibia.

This despite receiving payments exceeding millions of dollars.

Mushaninga denies non-compliance with Namibian tax regulations, saying his designated accountant ensures everything complies with Namibian laws.

“Let me address the question of the US$300 showing in the air waybill documents. As you may know, the air waybill is furnished by the manufacturer (in this case, the Chinese company), when they ship the supplies I have bought to me.

“I had not noticed they changed the value, but I can only imagine my Chinese supplier issued an incorrect price on purpose so they would pay less for shipping,” Mushaninga offered as the reason for his alleged failure to declare his earnings to Namibian tax authorities.

Kazembire Zemburuka, deputy director of corporate communications at the Bank of Namibia, says the Financial Intelligence Centre (FIC) could not confirm or deny whether Jaji Investments is under investigation.

He says the FIC is prohibited by the Financial Intelligence Act from disclosing information to other parties other than the authorities.

“Any disclosure outside the authorised domain, will amount to the commission of a criminal offence by staff members of the FIC,” he says.

Mushaninga says while the company is registered in Namibia they shipped the rapid test kits in question directly from China to Zimbabwe via Hong Kong, as Namibia’s laws do not cater for the distribution of rapid Covid-19 test kits.

“I can guarantee you I did not buy 4 500 rapid test kits for a mere US$300. I wish it were so! That money does not even begin to cover the cost of shipping all the kits to Zimbabwe,” he says.

Mushinanga says the company was chosen following the applicable procurement guidelines of the government of Zimbabwe, despite documents and media in that country showing procurement procedures were not followed.

“I play by the rules and provide competitive prices. Sometimes I win and sometimes I lose, and that is business. But I have no interest in risking my livelihood by engaging in shady practices, which is what I feel you are suggesting,” he says.

The issue comes amid a recent article in The Namibian about the government of Zimbabwe announcing through vice president Kembo Mohadi that Namibia had donated a consignment of rapid test kits.

Ironically, minister of health and social services Kalumbi Shangula said there was no such engagement between the two countries.

Meanwhile Ministry of Finance spokesperson Tonateni Shidhudhu said his ministry is assessing export activities relating to Jaji Investments CC and will release detail when a full assessment has been done.

“The assessment does not only involve the Ministry of Finance in Namibia, but we also need to contact our counterpart in Zimbabwe to be able to get the correct information,” he said.

Shidhudhu confirmed the company is a registered taxpayer in Namibia, but was unable to disclose other information.

“The information you are requesting is confidential as provided for in the law,” he said.

-charmaine@namibian.com.na