Nored in firing line

Local authorities are on the warpath over Nored's refusal to publicly disclose its turnover, profits and financial position since 2014.They are also demanding that Nored's formula to calculate monthly surcharges be reviewed.The local authority bigwigs, who spoke on condition of anonymity, further suggested that Nored's affairs be investigated. The local authorities are a 33% shareholder in Nored.They have urged Nored to make its audited books public.“There is no local authority that will tell you that they are happy with the conduct of Nored. We are getting peanuts as surcharges because the formula they are using is more favourable to them and not all of us. “We are the ones attracting investments to town, but in the end we are not getting the most out of it. They need to make their books public and account. We think that they need to be investigated,” sources said.Namibian Sun is reliably informed the Rundu town council generates over N$300 000 in monthly surcharges. However, this amount is the equivalent of less than 1% of the total electricity units sold in a month.This implies that Nored makes millions on a daily basis from local authorities such as Rundu, where there are about 90 000 residents.Attempts to get copies of Nored's recent financial statements proved futile, as the links on the company's website do not open, apart from the one for the 2013/14 financial year during which N$49 million in after-tax profit was recorded.Nored spokesperson Simon Lukas refused to answer the questions posed by Namibian Sun.Lukas instead invited the newspaper to their annual general meeting (AGM) in February next year.Namibian Sun asked Nored why it has not produced annual reports since 2014, whether they have provided a breakdown of turnover for the years since, what was paid over to the various shareholders and what profit was recorded.Nored was further asked to give a breakdown of what was earned by the various local authorities in terms of surcharges. While Nored is keeping its books secret, Erongo RED and Cenored's annual reports are accessible on their websites. Erongo RED achieved a net profit of N$94 million for the year ended 30 June 2018, while Cenored recorded a loss of N$10.969 million during the same period. Nored was established in 2001 as the country's first regional electricity distributor (RED).It distributes electricity to thousands of consumers in the Oshana, Ohangwena, Omusati, Oshikoto, Zambezi and two Kavango regions.This is after cabinet in 2000 approved the initiative to create REDs to distribute and supply electricity, through economies of scale, by pooling together human and operational capital resources.The ultimate goal is to stabilise electricity prices and ensure reasonable, affordable and cost-effective tariffs for electricity consumers.Late last year, shortly after the official inauguration of the Nored regional headquarters in Rundu, the company's CEO Fillemon Nakashole said the firm was not profit-driven, but simply provides electricity.When asked about the local authorities being unhappy with Nored and its affairs, as they are demanding more dividends, Nakashole said: “For you to have the maximum benefit in terms of surcharges, councils should not service the land and leave it unoccupied. As you service the land, try to get people to buy the land and get investors in, and that will increase your cash flow, the money you receive monthly and it also increases your balance sheet.” In November 2015, Nored opened a case of fraud and theft at the Ondangwa police station, after it was discovered that four employees had allegedly defrauded the company to the tune of N$4.7 million.At the time Namibian Sun reported that a network of employees discovered a loophole - the fact that Nored has not been audited since its establishment.KENYA KAMBOWE

Nored in firing line

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Namibian Sun 2025-09-16

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Nored in firing line

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Namibian Sun 2025-09-16

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