Jo-MarÉ Duddy
12 April 2011
THE suspended managing director of Namcor, Sam Beukes, and the board of directors failed in their duty, ringing up debts of more than a billion dollars, a forensic audit ordered by Cabinet has found.
At its last meeting, Cabinet discussed the report and concluded: “The managing director and the board have failed to carry out their fiduciary duties to the best of their abilities and with reasonable skill, care, and diligence to prevent the company from incurring debts.”
A total amount of N$538 million has to be paid to clear up the debts of Glencore, which, until last year, supplied half of Namibia’s monthly fuel needs on Namcor’s instruction, and bring the company to solvency, Cabinet said in a statement released by the Ministry of Information on Friday.
The audit, done by Grand Namibia by appointment of Auditor General Junias Kandjeke, found that Namcor did not do “proper due diligence” or a feasibility study regarding its contract with Glencore. “The supply agreement exposed Namcor to all risks,” the statement said.
It furthermore stated that Namcor could have involved Government as shareholder before beginning to source fuel from the open market in 2007. In October, Government suspended Namcor’s mandate to source half the country’s fuel needs and halted its contract with Glencore. Glencore and Petroneft have subsequently challenged Government’s decision in the High Court.
On March 3, Cabinet directed the Ministry of Mines and Energy to “explore a better importation strategy to minimise or prevent the situation from occurring in future”.
Private oil companies in Namibia are currently supplying in all of the country’s fuel needs again.
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