Zorena Jantze
JENNIFER Hamukwaya, the financial executive ensnared in a fraud and corruption case involving some N$480 million in relation to the National Petroleum Corporation of Namibia (Namcor), has said that Namcor’s credit policy allowed her to exceed the prescribed credit limit of N$15 million and provide fuel on credit to buyers based on each company’s merit.
Hamukwaya stands accused of accepting a bribe of up to N$1.4 million from entities such as Enercon Namibia Pty Ltd, Erongo Petroleum CC and Oshali fuel cc to approve fuel to be supplied on credit to said companies, resulting in the loss of over N$270 million to the state oil entity, Namcor. The said funds are alleged to have been paid into her husband’s company, Panduleni Farming CC, who is also an accused in the matter.
“If you break down this count, they say that you corruptly authorised or facilitated the supply of petroleum products to these three entities. As chief of finance of Namcor trading do you negotiate, conclude or sign fuel supply agreements with sellers?” Francis Bangawabo, Hamukwaya’s lawyer, said during the ongoing bail application today, to which Hamukwaya said that she is not responsible for this as that function does not belong to finance.
“I am part of the credit committee that manages customers of Namcor,” Hamukwaya detailed, stating that the credit committee includes her as the chairperson; the Executive of Logistics and Downstream Supply, accused two, Cornelius Willemse; the Executive of Credit Governance, who is not an accused in the matter; Finance Manager in Downstream in the trading company, Petrus Iniko; the Commercial Manager, accused four, Olivia Dunaiski; and Financial Accountant, Peter Sivambu.
“With each customer, when they apply for credit, there is a credit limit set. A customer could request for N$5 million, N$15 million, N$50 million or N$100 million. They can request to extend the credit limit beyond the set credit limit of N$15 million. This is set in clause 8 of the credit policy. The clause states that a risk-based approach is taken to credit assessment and this would be reflected on credit assessment data collected. Each application will be assessed on its own merit and a credit limit would be approved on the credit assessment. Each application will be assessed on its own merit. We cannot lump all the customers together,” Hamukwaya said.
She added that the policy also detailed that it is impractical to obtain reliable financial information from customers, and that sometimes decisions should be based on subjective factors, such as awarded tenders, bids and client base.
“The credit limit that is appropriate varies on profitability, financial position, and operating ratios. Time in business, payment records, economic circumstances and other factors. It is important to understand the liquidity and ability of a company to buy. The solvency, whether a company can pay its debt and the efficiency of the customer. On that basis we determine to give credit beyond set credit limit,” Hamukwaya said.
