ACC clears NIP execs in N$5.3m luxury car probe

The Anti-Corruption Commission (ACC) has cleared senior executives of the Namibia Institute of Pathology (NIP) of criminal wrongdoing over a controversial N$5.3 million executive vehicle scheme, saying it found no evidence warranting prosecution.

The investigation examined allegations of corruption against the NIP board and senior management relating to the purchase of luxury vehicles, alleged double-car benefits and monthly fuel allowances.

In a letter dated 22 July and addressed to acting chief executive officer Vincent Nowaseb, outgoing ACC director general Paulus Noa said investigators focused on the "allegations centred around the introduction of a car scheme that involved NIP's purchase of high-end cars and the provision of a fuel card worth N$20 000".

Noa said the ACC “could not find criminal evidence that may justify the submission of the docket to the prosecutor general for criminal prosecution”.

He added: "The minister and the board exercised their oversight and administrative authorities when they approved the vehicle scheme as part of the fringe benefits for the executives.”

The ACC probe also examined whether proper procedures were followed in introducing the car scheme, whether the board had written to the minister seeking approval for the benefits, and whether the minister had authorised the vehicles and, if so, the rationale for that authorisation.

Investigators further assessed claims that executives had circumvented procurement rules by purchasing used company vehicles for themselves in contravention of the Public Procurement Act and related regulations.

File closed

According to the ACC, the investigation found that the executive vehicle scheme had been approved by both the NIP board and the responsible minister. Noa said then board chairperson Bryan Eiseb had sought approval from the then finance minister Ipumbu Shiimi for the CEO's remuneration package and executive vehicles.

Eiseb is set to take over as ACC director general next month, succeeding Noa, who steps down after two decades at the helm of the commission.

The ACC also found that the Public Procurement Unit confirmed the purchases fell outside the scope of Section 3(1) of the Public Procurement Act because the vehicles formed part of executives' fringe benefits.

Noa said the investigation uncovered no criminal conduct.

"Following our findings, the file on the matter was closed," he added.

The ACC launched the investigation in 2024 following a complaint by the Namibia Public Workers Union (Napwu).

The ACC's decision closes only the criminal investigation. A separate forensic investigation commissioned by the Ministry of Health and Social Services remains under way.

Last month, the ministry appointed KPMG to investigate governance, procurement and the executive vehicle scheme. Documents seen by Namibian Sun show that investigators have requested executive contracts, payroll records, remuneration policies, invoices, vehicle registration documents, payment records, and board minutes relating to the scheme's approval, while the forensic review also extends to other governance and procurement matters at NIP.

Upmarket cars

The executive vehicle scheme came under public scrutiny in 2023 after reports revealed that NIP had spent N$5.3 million on vehicles for five senior executives as part of their remuneration packages.

Records show the institute paid N$1.1 million for former chief executive officer Kapena Tjombonde's Mercedes-Benz, N$1 million for chief technical officer Nabot Uushona's Ford, N$987 034 for a Nissan allocated to then chief operations officer Vincent Nowaseb, N$1.1 million for chief human capital officer Oaitse van Staden's Toyota Fortuner and N$1 million for chief financial officer Scholastika Mwetulundila's Volkswagen Amarok.

At the time, Tjombonde defended the purchases, saying the vehicles formed part of approved executive remuneration.

"Under the approved scheme, the vehicles remain assets in the books of the NIP, and those eligible have the right of use – official and private. After a five-year period, there is a provision for right of first refusal to purchase the vehicle," she said.