Schlettwein testifies at Teko trial

WINDHOEKFRED GOEIEMAN
The Minister of Trade and Industry Calle Schlettwein yesterday gave details of the agreement government had signed with Chinese company Nuctech for the purchase of US$55,3 million worth of security scanning equipment, now valued N$553 million.
Schlettwein, who when the agreement was signed in 2008 was the Permanent Secretary of Finance, was testifying in the trial of the so-called Teko trio yesterday in the High Court.
Yang Fan, a Chinese national, is charged in the fraud and money laundering case along with two Namibians, former chairperson of the Public Service Commission (PSC) Teckla Lameck and business partner Jerobeam Kongo Mokaxwa.
It is alleged that Lameck, through Teko Trading cc, received commissions amounting to US$4,2 million (N$40 million) from Nuctech, which she allegedly shared with her co-accused.
Schlettwein said he had only become aware of a company called Teko Trading cc when he was called by the Anti-Corruption Commission (ACC).
The minister said he is not aware of any consultancy being involved in the purchase contract.
“We were directed by Nuctech to act through their authorised representative. We stuck to it,” he emphasised.
He said Fan had been the Chinese company's authorised representative in Namibia.
Schlettwein explained the purchase of the scanning equipment had come about after an offer to do so was made by the Chinese government.
The Chinese had offered to fund projects to the value of over US$1 billion (N$10 billion), with a credit component of US$100m (N$1 billion).
“Within the ceiling Namibian government could propose projects to China and the latter would examine them through its bank, before the loan would be released. We then entered into a purchase contract with Nuctech,” he said.
The agreement indicated the loan amount and that the equipment had to be bought from China, and the project was to be implemented by them.
Using the loan funds, the Ministry of Finance paid for the scanning equipment.
The payment schedule, as well as the purchase agreement was yesterday handed in as an exhibit in the High Court.
Schlettwein testified that the items were covered by an advanced payment of US$12,8 million (N$128 million).
“Suppliers usually require an advanced payment so that they get the financial means to acquire the goods,” he said.
The rest of the US$42,5 million (N$420 million) concessional loan was provided by the Chinese government under the loan agreement, Schlettwein testified.
The advanced payment was 32.2% of the purchase price.
The electronic record management system bought by the Office of the Prime Minister from China was another project for which there was a separate loan, he added.
Acting Judge Maphios Cheda postponed the matter until September 2.