Martin Endjala
While facing cash-follow challenges, TransNamib has recently acquired six vehicles at the cost of N$2 million.
In an interview with Windhoek Observer this week, TransNamib spokesperson Abigail Raubenheimer said the purchase was necessary to boost the company’s operational capacity which has been lagging behind for some years now. She added that the vehicles will help generate enough revenue to meet the state-owned company’s expenses.
“These vehicles are a necessary cost for the company to increase operational efficiency. The remedy to Transnamib’s cash flow challenges is to generate more income. The investment in this equipment will help us do so, and mind you, the order for the vehicles was placed nine months ago. TransNamib has been completely transparent about its challenges with equipment. To remedy our cash flow issues, we need to increase the company’s revenue,” she explained.
Raubenheimer added that given the company’s transparency, it’s evident that investment into equipment is long overdue because operations have been severely impacted by a lack of vehicles, and the acquisition of the latest equipment is for the sole purpose of increasing operational capacity to push revenue so that the company can see light at the end of the tunnel in terms of generating enough revenue to meet expenses.
TransNamib has been making wrong headlines over the years, ranging from ageing locomotives, deadly train derailments and infightings among top executives.
Last month, it was reported that the company failed to keep up with the payment of its employees’ medical aid contributions while the water supply at the head office has been disconnected due to non-payment of municipal debt.
It is alleged that TransNamib’s water supply debts stand at N$8 million while also spending around N$3 million to N$4 million on around 700 employees’ medical aid annually.
