NAC boss appears before ACC

Namibia Airports Company (NAC) chief executive Bisey /Uirab appeared before the Anti-Corruption Commission (ACC) yesterday to provide information and documentation relating to the transfer of 19 company vehicles to executives and managers, as well as a range of tenders and senior appointments at the state-owned airports company.

The summons, issued by ACC director-general Paulus Noa on 9 September, required /Uirab to appear before an authorised officer and provide information in connection with an ongoing investigation into an alleged corrupt practice.

Speaking to Namibian Sun yesterday, Noa said /Uirab was summoned in his capacity as accounting officer at NAC, adding that the summons, which might be extended to NAC board members if deemed necessary, does not imply that any wrongdoing was committed.

“A summons is not a warrant," Noa said.

"In our context, a summons requires the person to appear before an investigative officer and go through certain policies, procedures or board resolutions together."

Noa said as CEO, /Uirab was called in to speak on matters that have been reported to ACC.

Noa said the summons is the "starting point of any investigation. They are designed to help prove or disprove the allegations."

He added: "We are approaching this matter with complete impartiality, like we do with every case brought to us."

The investigation into the vehicles is related to the NAC's former executive vehicle scheme, under which 19 executives and managers ultimately acquired company vehicles after paying a N$5 000 fee to transfer ownership.

“Saved millions” for NAC

It is understood that the scheme, which was costing NAC over N$15 million in vehicle purchases every four years – exclusive of the fuel and service costs – was deemed too costly to continue.

With the advent of Covid-19, when many companies were assessing their expenditures, NAC started the process to discontinue the car scheme.

However, this was complicated by the fact that employees participating in the scheme had contractual vehicle benefits and were entitled to replacement vehicles after 48 months.

“This was a condition of service and you could not simply stop the benefit while you have contractual obligations towards the scheme’s beneficiaries,” an official close to the matter said.

“The company then decided to try its luck and offer to forfeit the cars currently held by the managers, on condition that they accept the discontinuation of the scheme," the official said, adding that it "was a very painful process and there was a lot of resistance – and understandably so.

“But luckily many of the managers accepted the deal. It’s actually ironic that Bisey /Uirab is being questioned over this matter when he should, in fact, be applauded for discontinuing this expensive scheme and saving the company millions of dollars.” 

Luxury transfer

The beneficiaries included /Uirab himself, who acquired a Toyota Land Cruiser reportedly bought by NAC for about N$1.4 million, as well as other senior executives and managers.

Other vehicles included luxury models such as Toyota Land Cruiser 200s, Land Cruiser Prados, Land Cruiser V8s, Volkswagen Amarok V6s, a Range Rover Evoque, Jeep Grand Cherokee, Ford Everest and Mercedes-Benz GLCs.

NAC has previously maintained that the N$5 000 was not the purchase price of the vehicles but an administrative fee associated with the transfer of ownership after the company abolished its vehicle scheme in 2021.

Read the fine print

Despite the intent of the exercise, a works and transport ministry investigation subsequently raised questions about the legality and valuation of the transfers.

The investigation found, among other things, that the N$5 000 valuation was not supported by an accounting policy or recognised accounting standard and alleged that NAC had failed to obtain Treasury approval before disposing of the vehicles.

NAC has rejected those findings, arguing that the transfers arose from contractual rights contained in its former vehicle scheme and that the State Finance Act provisions relied upon by investigators did not apply to the company.

The vehicle matter escalated last month when works and transport minister Veikko Nekundi ordered NAC to recover the 19 vehicles transferred to executives and managers. The matter was subsequently submitted to the ACC for investigation.

The ACC summons now specifically seeks NAC's records relating to the alienation of the 19 vehicles.

Among the documents demanded are board submissions, committee minutes and recommendations that preceded the decision to dispose of the vehicles, NAC's insurance policies and renewal contracts, as well as invoices and proof of payment relating to the vehicles over a 28-month period.

Airport tender, appointments

The commission is also investigating the award of a tender to renovate the Aircraft Rescue and Fire Fighting facility at Hosea Kutako International Airport.

It wants the tender advertisement, evaluation and award documentation, together with requisitions, invoices, purchase orders and proof of payment relating to the successful bidder.

Several senior appointments are also under scrutiny. The ACC has requested documentation concerning the appointment of Monalisa Jakobs as head of internal audit, including the approved organisational structure, advertisement, applications, interview scorecards, panel recommendation, board resolution and employment contract.

It is also seeking similar records relating to the appointment of the executive responsible for human resources under Paterson Grading E in 2021, as well as the appointment of NAC's company secretary in 2022.

The summons requires /Uirab to provide a statement under oath or affirmation regarding the requested information and documentation.