Hertta-Maria Amutenja
Nico Smit, Popular Democratic Movement (PDM) member of Parliament has urged the Ministry of Finance and Public Enterprise to take action against the entire National Petroleum Corporation of Namibia (Namcor) Board and for the Board to dismiss the Managing Director, Immanuel Mulunga for serious transgressions of the terms of his employment contract.
This comes after the Anti-Corruption Commission (ACC) cleared Mulunga of corruption allegations when he authorised the transfer of money to Sungara Energies Ltd.
Smit stated that Mulunga’s authorization of the transfer of US$6.7 million to Sungara Energies Ltd. was not authorised by the Board, which is one of the key findings in the investigation report by ACC.
According to him, such transactions needed board approval because they could have a significant impact on the operations and profitability of organisations like NAMCOR.
“The Report further states that the MD authorized the transfer of money in the interest of NAMCOR and the country. It is deeply concerning that an anti-graft body like the Anti-Corruption Commission finds absolutely nothing wrong with the unapproved transfer of U$6.7 million to Sungara Energies Ltd by the MD. Firstly, it is important to mention and remind the Anti-Corruption Commission that the board of directors has a fiduciary duty to protect the best interests of the company and its shareholders. Board approval of transactions ensures that there is a process by which the directors examine, discuss, and assess the pending transactions to the extent necessary to make an informed decision and vote accordingly,” said Smit.
Additionally, he claimed that the ACC should have condemned the board for compromising the transaction by delaying making a decision and for starting an obviously fabricated witch hunt against the MD.
“The Board should have been dismissed for acting unprofessionally, in bad faith, and not ensuring that NAMCOR policies are up to a standard where important provisions such as special leave are made. The Board should also have been required to explain how it sanctioned such an obviously high-risk transaction where NAMCOR stood to lose a large amount of money if it did not step into the breech for the other partners,” he said
In addition, he implied that the NAMCOR Board’s complete inability to uphold the duties of care and prudence is obvious.
Smit added that the report by the Anti-Corruption Commission on the findings of the investigation appears to give other high-ranking officials at public enterprises the go-ahead to conduct high-level international transactions without the consent of the Board of Directors and receive praise in the process.
“This is a dangerous predicament from an anti-graft body entrusted to curb corruption in Namibia.it is extremely crucial to understand that Public Enterprises play a decisive role in the Namibian economy. They serve as a channel through which the Government can achieve high-level and cost-effective service delivery. However, the public sector in Namibia suffers from corruption, insufficient accountability and integrity, and NAMCOR is one such example,” stated Smit.
Allegations around Mulunga’s conduct surfaced in April this year and led to the suspension of the MD. ACC concluded a review of his activities on 24 July.
The focus of the investigation was Mulunga’s decision to singlehandedly approve an additional payment for a stake in Angola’s oil blocks.
The ACC report said Mulunga took the position that the board had given him the power to make the additional payment. The board had approved the deal with Angola’s Sonangol.
“The board could not be so naïve to give him unbridled powers to deal with the finance of Namcor without the approval of the board,” the review said.
