Fuel storage suspects in ACC's sights

The Anti-Corruption Commission (ACC) has confirmed it is looking at suspects in its ongoing investigation into the fuel storage debacle, which saw government forking out a whopping N$5.6 billion, after the initial project price was first put at N$920 million.

“The commission can confirm that we are investigating allegations in respect of alleged corrupt practices regarding the national oil (petroleum storage), petroleum offloading (petroleum jetty) and pipelines facility in Walvis Bay under case file reference ACC HQO 15-001820,” ACC director of investigations, Nelius Becker said.

“The investigation started on the 15th of November 2015 and is ongoing. Due to the fact that it is an ongoing investigation the commission will not divulge at this stage as to which individuals are the subject(s) of the investigations.”

He refused to entertain any further enquiries, including whether key players in the saga had been called to the ACC offices for questioning.

Among those who sources claimed had been questioned is former energy minister Obeth Kandjoze, who flatly denied that this had happened.





“I don't know what to say about that, I was away for the past weeks and I am in New York. I don't know anything,” Kandjoze told Namibian Sun yesterday.

The probe into the fuel storage facility has repeatedly been used as an example by President Hage Geingob in terms of his administration's anti-corruption crusade.

When construction started in 2014 estimates had already spiralled to N$3.7 billion, in terms of what it would cost government to build the fuel storage facility.

This was under the watch of then finance minister Saara Kuugongelwa-Amadhila.

Internal government disciplinary hearings have already targeted senior officials, with finance permanent secretary Ericah Shafudah receiving a final warning.

The fuel storage facility sits on land owned by the National Petroleum Corporation of Namibia (Namcor) overlooking the Atlantic Ocean. The area is five kilometres from Walvis Bay - between the naval base and Bird Island.

It was reported by The Namibian in October last year that cabinet documents it obtained estimated that the project will cost over N$5.6 billion, including N$955 million in penalties for the lack of foreign exchange insurance, around N$200 million for delaying the implementation of the contract and N$24 million for delayed payments to the contractor.

A month later, former National Planning Commission (NPC) permanent secretary Leevi Hungamo was the last person to face a government disciplinary hearing over why the costs around the facility had escalated so dramatically.

He was later found not guilty.

He subsequently quit his government position last year.

Shafudah and the chief legal adviser in the attorney general's office, Chris Nghaamwa, as well as Hungamo were under fire for government having to fork out N$1.8 billion above the N$3.7 billion 2014 estimate.

Shafudah was quickly charged last year, and given a final warning by cabinet secretary George Simataa, while Nghaamwa was found not guilty.

Energy ministry permanent secretary Simeon Negumbo wrote an update on the project to then line minister, Kandjoze, on 15 August 2017.

“This matter can no longer be delayed, and as the line ministry, the responsibility to ensure that this matter is dealt with ultimately falls with the ministry of mines and energy,” Negumbo wrote, adding the project was 75% complete, and could be completed by June this year.

The fuel storage facility was due to be handed over to government last month. The new facility will be the largest in the country. It will increase security of supply to 30 days.

Kandjoze has since appointed as director-general of the NPC as well as economic planning minister.

Tom Alweendo is the current energy minister.



OGONE TLHAGE