An Informanté Exposé
THE Namibian treasury and Ministry of Finance were plundered of tens of millions of dollars through Namibian Defence Force fronts that was created as employment projects for hundreds of Namibians in the defence industry.
The closure of August26 Textiles expose corruption on a grand scale and threatened to bring the August26 house of cards down with more closure looming.
An investigation into the surprise retrenchment of 81 workers and closure of August26 after the November elections and start of the New Year exposed a money trail to Hong Kong and Dubai through some companies that does not exist on paper.
The culture of secrecy on defence matters camouflaged a continuous and deliberate raid on the treasury until the insolvency of August26 forced the retrenchment of 81 staff members.
The closing down of August26 Textiles tomorrow and the retrenchment of 81 workers from the bankrupt employment project that was launched with the assistance of Cuba exposed tens of millions of dollars lost into the accounts of individuals.
In a remarkable coincidence with the Fishrot scandal NDF-funds also landed up in dubious bank accounts in Dubai and Hong Kong while some money was spent lavishly on cars, properties and lifestyles.
The money was mainly laundered through companies that cannot be traced in Namibia and have no registration, tax or vat numbers, while some only have postal addresses and no physical addresses.
The Finance and Administrative Manager of August 26 Textiles, Paulus Moshana, with six cars registered in his name, was suspended for nearly a year with full pay and eventually fired with his wife who was also employed by the same company after a disciplinary hearing.
Criminal charges were also instituted in 2018, but the Prosecutor-general, Martha Imaalwa, sent back the dockets to the Namibian Commercial Branch for further investigation.
The case number is CR500/7/2018.
Spokespersons for workers at August26 Textiles who face their last working day tomorrow and are entering a bleak future with their dependants locked in a daily fight for survival in Windhoek’s squatter communities and having brought their children from the North to attend schools and tertiary institutions in the capital city, are now stranded.
According to them they were informed that a new company will be started up, because August26 is bankrupt and they will not be employed, because some of them were spotted on news channels and therefore “fired themselves”.
They only related their stories to Informanté News on condition that their identities be concealed as they fear from what they term retaliation from an “Omuthiya Defence Force-clique.”
They also got hold of documents related to the alleged “plundering” that they believe is only the tip of the iceberg of a three year raid and ambush of the treasury by the defence related industry and expressed fear that the sudden closure of the company is an attempt to strip it of its assets and destroy evidence.
The Namibian Police has been informed about workers concerns.
Some of the details of the most recent plundering is an amount of N$967 265,00 that was released to a closed corporation, Penda Enterprises, for rain coats while it has emerged that Penda Enterprises is not registered with BIPA, has no VAT registration number and no physical address.
Furthermore the entity used a company stamp indicating a fake VAT number that was not detected by those that facilitated the transfer of money.
One of the biggest beneficiaries, Modern Shade and Blind Expert CC, has no telephone or physical address yet still received N$26 146 400 in 2015 and 2016.
Three foreign companies, based in Asia and the Middle-East, also received just over N$90-million. In the audit reports that surfaced with leaked documents these companies have their accounts in Dubai and Hong Kong.
A search of the companies only confirmed the existence of Kent Uniforms in Hong Kong, while no trace could be found of Far East Security and Star Security Systems in Dubai that were regular customers of August26 textiles.
The relationship between the owner of Kent Uniforms, Vinod Kumar Chada is also being questioned after he proposed in a memorandum of understanding with August 26 Textiles that he is only interested in a joint venture with certain people in charge at August26.
These names cannot be mentioned as the investigation is at a sensitive stage.
Anxious August 26 workers said they are still waiting for a government reply as the company belongs to the Namibian government and it was started with sewing machines donated by Cuba to manufacture army uniforms and other clothing as an employment creation project.
However since it became operational most items are sourced from suppliers outside of Namibia.
A quick check at clothing retail stores in Windhoek yesterday confirmed that August 26 textiles was paying nearly double for army PT shorts that they procured in the thousands from Asia.
Successive audits could not verify if the items were ever delivered.