EY, Hashagen omissions 'concealed crimes'
Failure to declare interests by Namfisa staff was allegedly swept under the carpet.
Ernst & Young (EY) and the head of its forensic investigation into alleged misconduct at the Namibia Financial Institutions Supervisory Authority (Namfisa) in 2009, Hans Hashagen, are accused of having “meticulously elected to omit” information that has allegedly led to concealment of criminal activities at the regulator.
This charge made by the Public Accountants' and Auditors' Board (PAAB) in its affidavit with the High Court in the matter against EY and Hashagen.
This particular charge relates to allegations of conflict of interest of former general manager of Investment Institutions, Boni Paulino, and the former manager of pension funds department at the time, John Uusiku.
Paulino is the current deputy CEO of Namfisa; Uusiku is the current manager of life insurance.
It is stated that EY and Hashagen failed to investigate alleged conflict of interest despite having had full knowledge.
Namfisa is a regulatory institution, the watchdog of the non-banking financial sector. In June, the regulator indicated that it regulates and supervises more than N$488 billion worth of assets, which is much more than the size of assets regulated by the Bank of Namibia (BoN).
The Namfisa code of ethics thus makes it clear that all its employees “declare real and potential conflicts of interest between their private and/or financial interests and their office responsibilities”.
The code further states that employees should declare all outside activities, employment and directorships and interests, irrespective of whether these were established before the issue of the code.
Paulino started working at Namfisa on 1 May 2002; Uusiku started a month later.
At the time Paulino had declared his directorships in Nashua, Multiline Investment Ltd., Multiline Technology, Namibia Harvest Investment Ltd., Fedics Food Services Namibia (Pty) Ltd., !Uri !Khubis, as well as the Frankie Fredericks Foundation.
Uusiku declared that he was not a director of any company.
However, it is alleged that Paulino and Uusiku shared ownership of Fedics and Nkororo Trading Holdings (Pty) Ltd.
Paulino and Uusiku allegedly also failed to declare their interests in a company called Maro Investments.
Paulino and Uusiku in 2006 reportedly also signed agreements with Stimulus Investment Fund to canvass investment companies, which was a listed company with the Namibian Stock Exchange (NCX).
Paulino in his capacity as general manager at Namfisa at the time was also a board member of the NSX for which he got paid about N$30 000 per year.
Companies allegedly canvassed included Pool & Garden Centre, Smartstone CC, and Uri Adventures (Pty) Ltd. Other companies with which Paulino and Uusiku have allegedly arranged appointments with – during Namfisa working hours – included Bytes Technology Group Namibia, Prosperita, and PG Glass.
It is stated that no employee working for a body like Namfisa should have business dealings with companies in the non-banking sector, which it regulates.
The EY report allegedly also left out a police report regarding the Fedics/Nkororo and Stimulus matters.
The EY report recommended further investigation into the involvement of Paulino and Uusiku in the list of companies, which prompted ousted Namfisa CEO Rainer Ritter to conclude that clear evidence of corruption already existed and that sufficient evidence was in the hands of EY, Hashagen, as well as the Namfisa board.
Catherine Sasman
This charge made by the Public Accountants' and Auditors' Board (PAAB) in its affidavit with the High Court in the matter against EY and Hashagen.
This particular charge relates to allegations of conflict of interest of former general manager of Investment Institutions, Boni Paulino, and the former manager of pension funds department at the time, John Uusiku.
Paulino is the current deputy CEO of Namfisa; Uusiku is the current manager of life insurance.
It is stated that EY and Hashagen failed to investigate alleged conflict of interest despite having had full knowledge.
Namfisa is a regulatory institution, the watchdog of the non-banking financial sector. In June, the regulator indicated that it regulates and supervises more than N$488 billion worth of assets, which is much more than the size of assets regulated by the Bank of Namibia (BoN).
The Namfisa code of ethics thus makes it clear that all its employees “declare real and potential conflicts of interest between their private and/or financial interests and their office responsibilities”.
The code further states that employees should declare all outside activities, employment and directorships and interests, irrespective of whether these were established before the issue of the code.
Paulino started working at Namfisa on 1 May 2002; Uusiku started a month later.
At the time Paulino had declared his directorships in Nashua, Multiline Investment Ltd., Multiline Technology, Namibia Harvest Investment Ltd., Fedics Food Services Namibia (Pty) Ltd., !Uri !Khubis, as well as the Frankie Fredericks Foundation.
Uusiku declared that he was not a director of any company.
However, it is alleged that Paulino and Uusiku shared ownership of Fedics and Nkororo Trading Holdings (Pty) Ltd.
Paulino and Uusiku allegedly also failed to declare their interests in a company called Maro Investments.
Paulino and Uusiku in 2006 reportedly also signed agreements with Stimulus Investment Fund to canvass investment companies, which was a listed company with the Namibian Stock Exchange (NCX).
Paulino in his capacity as general manager at Namfisa at the time was also a board member of the NSX for which he got paid about N$30 000 per year.
Companies allegedly canvassed included Pool & Garden Centre, Smartstone CC, and Uri Adventures (Pty) Ltd. Other companies with which Paulino and Uusiku have allegedly arranged appointments with – during Namfisa working hours – included Bytes Technology Group Namibia, Prosperita, and PG Glass.
It is stated that no employee working for a body like Namfisa should have business dealings with companies in the non-banking sector, which it regulates.
The EY report allegedly also left out a police report regarding the Fedics/Nkororo and Stimulus matters.
The EY report recommended further investigation into the involvement of Paulino and Uusiku in the list of companies, which prompted ousted Namfisa CEO Rainer Ritter to conclude that clear evidence of corruption already existed and that sufficient evidence was in the hands of EY, Hashagen, as well as the Namfisa board.
Catherine Sasman
Comments
Namibian Sun
No comments have been left on this article