Govt orders KPMG probe into N$5.3m NIP car scheme

Government, through the health and social services ministry, has ordered a forensic investigation into governance, procurement and executive benefits at the Namibia Institute of Pathology (NIP), with audit and advisory firm KPMG understood to have been appointed to conduct the probe.

Government sources familiar with the matter told Namibian Sun that health minister Dr Esperance Luvindao ordered the investigation following concerns surrounding the procurement, ownership and management of vehicles allocated to senior executives under NIP's controversial N$5.3 million executive vehicle scheme.

The forensic investigation, which started last month, is expected to examine the procurement process, contractual arrangements and current status of the vehicles, including a Mercedes-Benz bought for former chief executive officer Kapena Tjombonde, which remained in NIP's possession following her departure in January this year.

The audit is also expected to establish whether broader governance and procurement processes at the institution complied with applicable legislation, internal policies and contractual requirements.

The health ministry yesterday confirmed that an investigation into the executive vehicle scheme at the NIP is currently underway.

"However, to safeguard the integrity, fairness and due process of the ongoing proceedings, the ministry is strictly not in a position to comment on any specific details, including the scope, appointed third parties, or potential administrative implications regarding executive contracts at this stage," a ministry spokesperson said. 

The ministry assured that once the investigation has been fully concluded, it will share more details where appropriate.

Digging in

Documentation seen by Namibian Sun shows NIP has been asked to provide the "remuneration policy for executive management, names of executive managers who benefited from the vehicle scheme, and employment contracts for the above-mentioned executives" to the auditors.

Investigators have also requested payroll records for executives to confirm remuneration packages as well as "invoices and payment documentation for the vehicles purchased”.

NIP has been instructed to provide “registration book copies of vehicles purchased, including allocation” and the "terms and conditions" for the allocation of the vehicles.

Minutes of board approval of the exco vehicle scheme of 2023 and the “board pack for the meeting where the vehicle scheme was approved" must also be handed over.

The institute has further been instructed to provide the board charter, the institution's procurement policy and conflict-of-interest declarations relating to procurement processes under review.

Broader probe

Documents seen by Namibian Sun further suggest that the forensic exercise extends beyond the executive vehicle scheme. It includes a review of procurement processes, governance matters, expenditure records, donations and the appointment of external service providers, including the appointment of 20Twenty Financial Services..

Namibian Sun reported last year that NIP appointed Vybrand Advertising CC, and paid it N$520 000 to rebrand NIP, despite the procurement committee’s recommendation against it.

The forensic team has requested documents pertaining to this tender, including request-for-proposal documents, bid submissions, tender committee deliberations, board approval records, award letters and the signed agreement between NIP and the company.

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

Apart from Tjombonde, the executives who benefited from the scheme are Oaitse van Staden (chief human capital officer), Nabot Uushona (chief technical officer), Vincent Nowaseb (chief operations officer) and Scholastika Mwetulundila (chief financial officer).

Documents show that NIP paid N$1.1 million for Tjombonde's Mercedes-Benz. Uushona received a Ford vehicle worth N$1 million, while Nowaseb was allocated a Nissan valued at N$987 034.

NIP bought a Toyota Fortuner for Van Staden worth N$1.1 million and a Volkswagen Amarok for Mwetulundila worth N$1 million.

The documents indicate that the payments were made on 17 and 28 November 2023.

Defending the purchases at the time, Tjombonde said the vehicle scheme formed part of executives' remuneration packages and constituted “an extension of the fringe benefit” afforded to senior management.

“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,” Tjombonde said.

Contracts ending

The forensic investigation comes at a time when several executive contracts are approaching expiry.

Following Tjombonde's exit in January this year, Nowaseb was appointed acting chief executive officer.

Nowaseb's contract as chief operations officer expires this month, as does that of NIP's chief strategy and business development officer, Niita Evaristus.

Mwetulundila's contract comes to an end in October.

Sources familiar with the matter say the forensic investigation is also expected to inform decisions on whether executive contracts should be renewed.

The ministry reportedly intends to use the findings of the forensic audit to help determine whether existing executives should remain in their positions or whether changes to the leadership team may be necessary.

Asked about the reported forensic investigation and its potential implications for executive contracts, Nowaseb declined to comment, saying the matter fell within the ministry's domain.

“The ministry of health is best suited to speak on this matter really, not me. I cannot comment on it,” Nowaseb said.

Evaristus, however, clarified that while the acting chief executive officer is authorised to renew the contracts of certain executives, he cannot renew his own contract, which falls under the authority of the board.

Earlier this year, NIP confirmed that the Mercedes-Benz allocated to Tjombonde remained the property of the institution and in its possession following the expiry of her contract.

“The vehicle in question belongs to NIP and is as such in the NIP's possession. Regarding the former CEO's interest in the vehicle, that is a contractual matter between the NIP and the former CEO. The company will not act outside of its contractual obligations,” NIP said at the time.

NIP was established in 2000 to provide medical laboratory services in Namibia and plays a critical role in the country's healthcare system.