Nampower Denies Alleged N$250 Million Loss

13 June 2011

NAMPOWER managing director Paulinus Shilamba has dismissed claims of a N$250 million loss at the parastatal as “totally baseless, slanderous and devoid of any truth, aimed at nothing else but to tarnish the good name of the company”.

It was alleged that the money had gone missing from NamPower’s power system development department.

A claim circulated to the media was also that the Anti-Corruption Commission (ACC), was “on the case” and had visited NamPower on May 12 to investigate the matter.

The ACC’s Erna van der Merwe denied any knowledge of the alleged missing funds, however.

At the time The Namibian enquired about the allegations, Shilamba also responded that the so-called missing funds had never been brought to his attention.

Responding to an article containing the allegations in a weekly newspaper last week, Shilamba said NamPower is recognised as one of the best utilities in the southern African region, and one of the best-managed State-owned Enterprises (SOEs).

He said it is also one of a few power utilities in the region with the best credit investment rating from the Fitch International Rating Agency.

“It is highly unlikely that such huge amounts of money can disappear from the company undetected considering the regular, tight and rigorous internal and external audit processes that NamPower has in place,” said Shilamba.

The allegation around the ‘lost millions’ was that the price of high-voltage electricity equipment was inflated, and that money was being stolen from projects such as the Caprivi Link, Anixas, Kudu Gas, and the installation of a fourth turbine at Ruacana.

To a claim that all project managers on these projects are white South Africans while black technicians and engineers are left out, Shilamba said NamPower personnel are assigned to these “highly specialised projects” as understudies, saying that a decision was taken that no consultant or contractor would work on their own, but that NamPower would continuously be present to ensure that “we intellectually and technically understand what will eventually be built, and that NamPower will be able to maintain such infrastructure”.

Shilamba said NamPower’s executive management team was restructured in July 2010 to streamline operations.

“This structure has strengthened the functional units through competent and experienced divisional leaders to implement the strategic imperatives operationally,” he said.

Through this process, he said, no staff was relocated to remote areas, as alleged, saying staff affected last year have been consulted and have in principle agreed to their new roles.

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