Namibia: Beneficiaries of NWR partnerships revealed

These comprise the majority of the most popular tourism and camping destinations around Windhoek and Swakopmund run by the state-owned resort operator, a three-month investigation has shown.

A review of the administrative procedures implemented since 2006 in NWRs awarding of these concessions to Tungeni Africa (Pty), Prosperity Africa (Pty) and Reho Spa (Pty) also raise serious questions over the legality of the Public-Private Partnerships (PPP) entered into.

Company and other documentation showed what appears to be a remarkable degree of coordination between actions taken by the officials involved and friends or associates in the private sector over a period of three years (2006-2008), resulting in them taking control of state-owned real estate worth in excess of $300 million for N$7 million in signature fees.

The investigation also brought to light that NWR MD Tobie Aupindi is involved in a mysterious company called Donor Investments that is to receive a 30 per cent share in Tungeni Africas planned N$450 million development plans.

Tungeni received the lions share of the PPP concessions, namely a highly controversial 100-year lease over the Von Bach campsite (source of Windhoeks fresh water), as well as 30-year leases over the Jakkalsputz, Mile 72 and Mile 108 campsites.

Former trade unionist Ranga Haikali and Agriculture Permanent Secretary Andrew Ndishishi have emerged as the main BEE players in the Daan Viljoen Game Park concession, while former National Youth Council functionary and Swapo MP Blaauw is one of two partners in the Reho Spa.

Donor Investments interests in Tungeni appear to be held at this stage by Tonata Itenge, a former Ambassador to Sweden and now Special Advisor to Gender Equality Affairs Child Welfare Minister Marlene Mungunda.

SPYL-nominated National Assembly candidate Pieter van der Walt, who confirmed in an interview last week that he was one of the four directors in Donor Investment, said that the people involved were Paragon Investment Holdings Desie Amunyela and Tobie Aupindi, amongst others.

I know that Tobie [Aupindi] is part of the groupbut you must ask SPYL about this [company], which was recently formed to deal with some Swapo properties, Van der Walt said.

He was not sure if the name Donor Investments had been registered yet, or if it was still operating under a shelf-company name. All three or four board meetings he had attended so far were held at Paragons Windhoek offices, he said. Amunyela was approached for comment but had not responded at the time of going to press.

Paragon Investment Holdings is a property, retailing and publishing company run by black empowerment kingpins Amunyela and Lazarus Jacobs. It is involved in advertising, duty-free shops and property investments and also owns the Windhoek Observer newspaper.

DONOR INVESTMENTS

Aupindi has denied any knowledge of Donor Investments, as did Ministry of Environment and Tourism Permanent Secretary, Kalumbi Shangula.

Both were however present when on February 4 this year when Tungeni Africas Managing Director Iyaloo Nangolo made an official presentation of their business plan to MET Minister Netumbo Nandi-Ndaitwah.

In the presentation, a copy of which is in possession of The Namibian, it was spelled out that Donar (sic) Investments, C/O SPYL would hold a 30 per cent interest in Tungeni Africa as institutional shareholder. Nangolo subsequently has also denied any knowledge of Donor Investments.

Aupindi has strenuously denied any irregularities in the awarding of these concessions, and subsequently ran several newspaper ads in which he defended the PPP concessionary deals as completely in line with the June 22 2006 Cabinet resolution approving NWRs controversial turn-around strategy.

At the same time, SPYL president Elijah Ngurare publicly attacked Nandi-Ndaitwah and President Hifikepunye Pohamba for sabotaging the NWR by declining to attend the re-opening of the Ai-Ais Resort late last month.

PROSPERITY AFRICA (PTY) LTD

Ngurare and Shangula are board members of Swapos commercial arm Kalahari Holdings (Pty), which itself is a direct beneficiary of the PPP deals by way of a 10 per cent stake in San Karros (Pty) via Oryx Investments (Pty) in the Daan Viljoen venture.

Another Swapo-run company, Zebra Holdings, in which, among others, noted politicians such as Omusati Governor Uusko Nghaamwa are shareholders, also has a 10 per cent stake in this venture, company records showed (Please see accompanying diagrams).

Both Kalahari and Zebra hold their stakes in Daan Viljoen via Oryx, a company set up by Haikali and Ndishishi a month before the NWR in late August 2007 issued public calls for PPP proposals.

Oryx in turn is a 20 per cent shareholder in San Karros Lifestyle Safaris, which obtained 60-year rights over the Daan Viljoen Game Park, 15 kilometres east of Windhoek. It is to be turned into an exclusive medical tourism facility by health care insurer Prosperity Healths tourism arm Prosperity Africa (Pty).

Haikali is also a director of Prosperity Health, which manages NWRs medical aid scheme, one of several such parastatal contracts held by the health insurance company.

Prosperity Health Director Kobus Struwig also recently confirmed that Prosperity Africa and Tungeni Africa had jointly obtained all hunting rights for the Von Bach and Daan Viljoen game reserves.

While the number of game in Daan Viljoen has sharply declined in recent years, MET Director of Natural Resource Management Ben Beytell estimated that the Von Bach Game reserve had thousands of kudus and other large and small game.

TUNGENI AFRICA (PTY) LTD

The biggest winner in the NWR PPP handout is Tungeni Africa, which obtained 100-year rights over the Von Bach Dams tourism facilities (which they claim include the two long-existing private ski clubs 10 hectares as well) and three of the four West Coast Recreational Park campsites.

Tungenis share register showed that its shareholders are Tonata Itenge (40 per cent), Namibias Ambassador to Austria, Sakina Ashipala, Namdeb MD Inge Zaamwani-Kamwi and Capricorn Holdings director Gida Sekandi (all 10 per cent each), as well as quantity surveyors Iyaloo Nangolo and Ian Oosthuizen (15 per cent each).

Itenges 40 per cent, judging by Tungenis January 2009 business plan presentation, includes the 30 per cent Donor Investments interest where Van der Walt said Aupindi was involved.

Tungeni plans to build a N$450 million, 240-house Lifestyle Village with marinas and a golf course at Von Bach, as well as small chalets to be leased at the West Coast campsites which they intend selling by way of 50-year leasehold agreements.

Their plans for Von Bach especially have come under fire as Water Affairs officials warned that these plans posed a serious risk to Windhoeks main source of drinking water. Tungeni has so far dismissed these concerns as baseless.

REHO SPA (PTY) LTD

Meanwhile, Ralph Blaauw, still awaiting trial in the Avid case, has emerged as the silent partner with Polytech Registrar C.J. (Corneels) Jafta as the principal shareholders of Reho Spa (Pty), which company obtained the concession for the hot-water spring resort 90 kilometres south of Windhoek.

Venture capitalism outfit Aantu Investments said they were approached by Ralph Blaauw less than a week before the official PPP signing ceremony in middle July 2008 after Blaauws Chinese partners had pulled out of an earlier deal with him.

Aantu however objected to the NWRs Aupindi misrepresenting their contract in public by telling the black-tie event held at the NamPower Convention Centre on July 25 2008 that their contract was for 15 years while they were promised rights for 30 years.

When Aupindi later insisted that they obtain Treasury approval themselves for the deal, they walked away from the deal, Aantus Cedric van Turah said.

Their N$300 000 signing fee was then repaid by Corneels Jafta, who is also the only registered director and shareholder in Reho Spa. But staff at the Spa referred all queries in this respect to Blaauw.

THE PRE-QUALIFICATION PROCESS

Aupindi, in an interview, strenuously denied that the pre-qualification process for prospective bidders for Daan Viljoen, the Reho Spa, the Von Bach and West Coast campsites was in any way manipulated to allow only his friends to bid.

The adverts calling for proposals for taking over these resorts were widely advertised, even in your own newspaper before the concessions were allocated, Aupindi said. He also claimed these were also posted on the NWR website, but it was not clear if the official website (re-launched by him personally beginning August) was functional at the time.

The only ads that could be found in all the local newspapers between May and August 2007 showed that on Friday, August 24 2007, The Namibian and New Era carried an identical NWR ad (Seeking for Partners) that called for BEE development and management proposals for NWRs fuel stations in Etosha and along the coast.

On August 28 2007, another Seeking for Partners ad was run, this time calling for proposals for the Reho Spa, Shark Island, Von Bach Campsite and the West Coast Recreational Area, being the Mile 14, Jakkalsputz, Mile 72 and Mile 108 campsites.

It also called for proposals to set up an exclusive jewellery shop in Namutoni, but made no mention of Daan Viljoen as being available for development.

Interested parties had to submit all proof of relevant capacity, resources and experience, proof of registration, an Affirmative Action Compliance certificate as well as a detailed description of previous involvement and experience in the hospitality industry.

None of the people involved in Tungeni Africa, Prosperity Africa or Reho Spa actually met this pre-qualifying requirement, as far as could be established.

Black Economic Empowerment Companies are encouraged to apply. Only short-listed bidders [who meet the pre-qualifying criteria] will be invited to submit detailed proposals, the ad stated. The closing date was a working day later, viz. Friday 31 August 2007.

Shangula, asked if especially the Daan Viljoen bid had not been manipulated, denied any irregularities in the pre-qualification process.

When it was put to him that only persons or companies with advance knowledge of the PPPs stood any chance of preparing a successful bid, Shangula pleaded: Please go and talk to Tobie [Aupindi].

IN STEP AND IN TANDEM?

Analysis of company records and dates of the paper trail stretching back to 2006, however, show a remarkable synchronicity in timing in the set-up of companies, officials appointed and certain official decisions taken.

For example, Tungeni Africa was set up in the month before Cabinet had met to approve the NWRs turn-around strategy and its policy of implementing Public-Private Partnerships on June 22 2006.

Tungenis official company records show it was registered as Tungeni Africa Experience from an off-the-shelf company called Mandy Investments 156 (Pty) on 1 June 2006, a month before the public announcement of the PPPs by way of the weekly Cabinet Press Release of July 5 2007.

Apart from allocating all its shares and appointing all its directors by June 14, the company appeared to have only become active a year later on July 17 2008, when it signed its N$450 million agreement with the NWR, a copy of its contract showed.

Meanwhile, Ndishishi and Haikalis vehicle Oryx Investments (Pty) was formed exactly a year after Tungeni on June 1 2007, when Ranga Haikali and Andrew Ndishishi bought an off-the-shelf company called Starting Right 103 from auditing firm PricewaterhouseCoopers (PWC).

A year later, in July 2008, Prosperity Africa MD Kobus Struwig bought Starting Right 134 (Pty), another off-the-shelf PWC company, and transferred 20 per cent of its shares to Oryx.

Haikali has since resigned as director from Oryx. Current records reflect that Ndishishi and two former junior colleagues of his at the Ministry of Trade and Industry, Etuna Nashima and Willem Nekwiyu, now make up its board.

Neither filed written permission with the Registrar of Companies Office to be involved in private business, as required under Section 17 of the Public Service Act of 1992. Similarly, neither could any written permission be found on file for Ambassador Ashipala or Itenge.

Asked on what basis the NWR had approved the lucky bidders, Aupindi insisted that the NWR board itself had approved every PPP contract. But the NWR Board has come under fire for serious financial mismanagement over the refurbishment of Ai-Ais, a year late and nearly N$20 million over budget.

In the ten years of its existence, the NWR also is yet to submit its annual financial report to the National Assembly, as it is legally required to do under the NWRC Act of 1998. NWR spokesman Najeeb Kahn last week said their board would meet at the end of this month to approve it annual report.

Follow-up questions in this regard were e-mailed to Aupindi, but no response has yet been received. Similarly, requests for comments from Sekandi, Zaamwani and others involved in Tungeni Africa have been stone-walled since middle June.

* John Grobler is a freelance journalist

The Namibian