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Tension Hits Namcor

Tension Hits Namcor

Kauta resigns and delivers bombshell

Kauta apparently pulled the trigger with his resignation with immediate effect and turned whistle blower, handing over the findings of a forensic investigation of alleged corrupt and illegal practices of four of the most senior managers of the petroleum corporation to the Minister of Mines and Energy, Tom Alweendo, Neels Becker of the Anti-Corruption Commission and the Permanent Secretary of the Ministry of Finance, Erica Shafudah. In a hand delivered letter from Kauta, he explained that he does not wish to subject himself to a corruption investigation and served the corporation with honesty and integrity, which included the Namcor Board commissioning an investigation into allegations of impropriety and untoward conduct by the executive management team. According to Kauta, copies of the investigation report by Deloitte (Deloitte Report) were submitted to the minister as it contains significant recommendations on the next steps that should be taken in the process.

“I do not desire to subject myself to a contravention of Section 17 of the Anti-Corruption Act. To that end, I hereby resign effective immediately upon delivery of the Deloitte Report, in accordance with the letter to the Anti-Corruption Commission,”

he said.

In a letter to the Chief Investigator of the ACC, Becker, Kauta asked Becker for an investigation into various allegations of procurement related and other irregularities after concerns were reported to the Namcor Board. Kauta revealed that the Deloitte investigation report records prima facie evidence of a number of senior Namcor employees, including the managing director and three executives, having contravened the provisions of the Public Procurement Authority (PPA). After providing a list of possible contraventions, Kauta indicated that the Deloitte findings recommend criminal investigations. Kauta also sent a report to the Permanent Secretary of Finance, Shafudah, who is currently in Bali, Indonesia. The Minister of Finance, Calle Schlettwein, said he was not informed of the letter and the allegations as his PS is out of town and no letter was addressed to him. The report also pointed out potential anomalies in the provisions of the PPA and the Regulations that came to light during the investigation. A material conflict of interest could arise if the interest of the accounting officer is not aligned to the interests of the public entity. In December 2017, the conflict between Kauta and Mulunga took an ugly turn, with mutual accusations hinting to tribalism and a concerted effort by supporters of Kauta to get rid of Mulunga. Not one of the parties wanted to comment on the latest development in the ongoing saga. Interestingly, Kauta’s resignations comes just weeks after his brother, Rodger Kauta, also resigned as Board Chairperson of the troubled Namibia Airport Company (NAC).

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