Psemas probe costs doctor N$22m

Dr Livingstone Mugimu, a Ugandan national practising medicine in Namibia, on Friday last week launched an urgent application in the Windhoek High Court to prohibit the finance minister and the commissioner of inland revenue to proceed with the appointment of Bank Windhoek as the agent for his bank accounts.According to an affidavit by the commissioner, Justus Mwafongwe, Mugimu owes the receiver of revenue N$17.7 million in taxes, another N$17.7 million in fines and N$2.5 million in interest. Mugima's application follows a transfer of almost N$22 million by Bank Windhoek from his account to the receiver of revenue.According to Mwafonge, Mugimu owes N$37 972 687.14 for the financial years 2014, 2015 and 2016. In a notice from the ministry, the doctor was given 90 days to object to this but, instead, he turned to the court for relief, Mwafonge said.Mugimu asked the court to order that the money be repaid to him but also requested that the decision taken on 15 March that Bank Windhoek act as his agent, as well as the amount of N$37 972 687.14 the receiver says is owed, be set aside.In his founding affidavit, Mugimu, who has been practising in Namibia since 1991, said that over the years he had saved more than N$23 million to buy a CT scanner for his practice. He transferred this amount from an investment account in February this year for the purpose of buying the machine but could not because Bank Windhoek transferred N$22 million to the receiver of revenue.He told the court that his Oshakati practice primarily dealt with HIV-positive patients and that he provided very expensive but life-saving medicines to those patients. Since the bank had taken over his accounts, he could no longer operate his practice efficiently and it was collapsing. At the moment, any money deposited into his account is transferred to the finance ministry until the amount of N$37 972 687.14 is settled. Mugimu added that his taxes were in order and that he had a certificate of good standing from the ministry.He described the assessment by the ministry and its instruction to transfer money directly from his account to the receiver as draconian, unreasonable and unfair.However, Mwafongwe told the court that Dr Mugimu had under-declared his annual income for tax purposes and added that there was a distinct possibility that Mugimu would continue to evade tax and might even leave the country with the money he owed the state.Mwafongwe added that the drastic step to appoint Bank Windhoek was necessary because the doctor had begun to transfer money out of his account. By 17 March, he had transferred N$28 million from his account. That was done after he had been notified of his tax obligations, Mwafongwe said.Further to this, he said once the audit on Mugimu's practice was completed, the doctor might in fact owe more than the stated amount.“It is also impossible for Mugimu to have saved more than N$21 million as his tax returns indicate that he only earned N$6 023 897.77 from 2006 to 2017.”Mathias Kashindi, counsel for the State, said since Mugimu had not met the requirements for furnishing further particulars to the receiver, in accordance with article 64(1) of the Income Tax Act, his application should be scrapped from the court roll. He also told the court that information from the Psemas government medical aid probe had led to further investigations. Kashindi told the court that large differences were found between the figures Psemas had paid to the doctor and the income he had declared to the receiver.“The applicant earned N$21 481 707 in 2017 but only paid taxes on 3% of this, investing the rest for his own gain. That investment belongs to the state,” Kashindi said.Deputy Judge President Hosea Angula reserved judgement until 19 May after hearing arguments from Kashindi and Sisa Namandje, counsel for the applicant. JACQUELINE LOUW

Psemas probe costs doctor N$22m

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Namibian Sun 2025-07-07

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Psemas probe costs doctor N$22m

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Namibian Sun 2025-07-07

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