NLF wants probe on fuel deal finalised

RANGA Haikali, Chairman of Namibia Liquid Fuels (NLF), has thrown out a challenge to the Anti-Corruption Commission, demanding that it complete its investigation into a controversial contract obtained by his company to supply 50 per cent of Namibia’s annual fuel requirements of about 830 million litres.

According to Haikali, he would like to see the investigation completed as soon as possible to remove the cloud that continued to hang over NLF’s head. He was speaking at the opening of NLF’s new Windhoek offices last week, In spite of negative publicity and legal challenges, NLF had kept to its side of the bargain and supplied more than 400 million litres of different kinds of fuel to the Namibian market, Haikali said.Mines and Energy Minister Errki Nghimtina presided over a brief ribbon-cutting ceremony at NLF’s rented offices situated at 47 Feld Strasse in downtown Windhoek.In July, the ACC’s Director, Paulus Noa, announced that the Commission was investigating the controversial contract that saw a small group of individuals – including a number of top Government officials – obtain a contract that industry experts suggested should rather have been given to the Namibian Petroleum Corporation (Namcor) to finance its dormant exploration activities.In a recent interview, Noa insisted that this investigation was continuing.Although the Anti-Corruption Acts precludes him from commenting on specifics, his office is believed to be looking at whether undue political influence was brought to bear in awarding the contract, whether top politicians would benefit from the deal in contravention of Constitutional prescriptions with regards to conflicts of interest, and whether the deal was not in contravention of the Namcor Act itself.The contract, thought to be worth at least N$400 million a year, was granted to NLF in the dying days of the Nujoma presidency.NLF is a joint venture between Sasol, South Africa’s synthetic oil giant, and a local consortium of well-connected individuals, who own 51 per cent of the deal via Philco Twenty (Pty) Ltd.An investigation by The Namibian brought to light a convoluted share structure that included a host of individuals, many of whom are closely related to four top Government officials.These shares, which all make up part of the Kapenda Development Trust, were parked in various holding companies, another trust and several close corporations.Individuals in these structures are either close politically or related to Cabinet Ministers Pendukeni Ithana-Iivula, Rosalia Nghidinwa, Petrina Haingura and Deputy Minister Angelika Muharukua.Lawyers acting for NLF have subsequently stated that these shareholding structures had been amended, and a brochure handed out by NLF at the opening of its offices only reflects the shareholding of the five top individuals.No mention is made of the Kapenda Trust.Haikali pledged to expand NLF’s presence in the Namibian liquid fuel industry.NLF would be looking at expanding into the mining sector as well, he said.NLF was continuing to source crude oil in the international market for refining at Sasol’s Natref refinery in South Africa before shipping to Namibia.NLF shareholder and economic advisor in the Office of the President Leevi Hungamo said that the NLF did not have its own crude-oil traders but piggybacked its own requirements on Sasol’s much larger purchases of crude.High crude prices also meant that plans to capitalise NLF at a projected US$48 per barrel had to be re-calculated “at about $78 dollars” per barrel, suggesting that NLF was making rather less money than expected initially.Haikali said the appointment of (former Mines and Energy Chief Inspector) Mulifa Siyambango and the opening of the new NLF offices signalled the company’s commitment to servicing the Namibian economy and contributing to the training of young Namibians.* John Grobler is a freelance journalist; 081 240 1587He was speaking at the opening of NLF’s new Windhoek offices last week, In spite of negative publicity and legal challenges, NLF had kept to its side of the bargain and supplied more than 400 million litres of different kinds of fuel to the Namibian market, Haikali said.Mines and Energy Minister Errki Nghimtina presided over a brief ribbon-cutting ceremony at NLF’s rented offices situated at 47 Feld Strasse in downtown Windhoek.In July, the ACC’s Director, Paulus Noa, announced that the Commission was investigating the controversial contract that saw a small group of individuals – including a number of top Government officials – obtain a contract that industry experts suggested should rather have been given to the Namibian Petroleum Corporation (Namcor) to finance its dormant exploration activities.In a recent interview, Noa insisted that this investigation was continuing.Although the Anti-Corruption Acts precludes him from commenting on specifics, his office is believed to be looking at whether undue political influence was brought to bear in awarding the contract, whether top politicians would benefit from the deal in contravention of Constitutional prescriptions with regards to conflicts of interest, and whether the deal was not in contravention of the Namcor Act itself.The contract, thought to be worth at least N$400 million a year, was granted to NLF in the dying days of the Nujoma presidency.NLF is a joint venture between Sasol, South Africa’s synthetic oil giant, and a local consortium of well-connected individuals, who own 51 per cent of the deal via Philco Twenty (Pty) Ltd.An investigation by The Namibian brought to light a convoluted share structure that included a host of individuals, many of whom are closely related to four top Government officials.These shares, which all make up part of the Kapenda Development Trust, were parked in various holding companies, another trust and several close corporations.Individuals in these structures are either close politically or related to Cabinet Ministers Pendukeni Ithana-Iivula, Rosalia Nghidinwa, Petrina Haingura and Deputy Minister Angelika Muharukua.Lawyers acting for NLF have subsequently stated that these shareholding structures had been amended, and a brochure handed out by NLF at the opening of its offices only reflects the shareholding of the five top individuals.No mention is made of the Kapenda Trust.Haikali pledged to expand NLF’s presence in the Namibian liquid fuel industry.NLF would be looking at expanding into the mining sector as well, he said.NLF was continuing to source crude oil in the international market for refining at Sasol’s Natref refinery in South Africa before shipping to Namibia.NLF shareholder and economic advisor in the Office of the President Leevi Hungamo said that the NLF did not have its own crude-oil traders but piggybacked its own requirements on Sasol’s much larger purchases of crude.High crude prices also meant that plans to capitalise NLF at a projected US$48 per barrel had to be re-calculated “at about $78 dollars” per barrel, suggesting that NLF was making rather less money than expected initially. Haikali said the appointment of (former Mines and Energy Chief Inspector) Mulifa Siyambango and the opening of the new NLF offices signalled the company’s commitment to servicing the Namibian economy and contributing to the training of young Namibians.* John Grobler is a freelance journalist; 081 240 1587