THE troubled national carrier Air Namibia had accumulated losses of just over N$3 billion by the end of March 2007, the latest financial report of the company tabled in Parliament yesterday revealed.It also recorded liabilities of N$486,6 million during that financial year. The exact amount of losses accumulated over the years is a staggering N$3 051 676 305, but further losses are foreseen (for 2008), according to a note in the financial report by Air Namibias board of directors.
Due to its high losses, Air Namibia has not been paying taxes for several years. The net loss by Air Namibia for the period between February 2006 and March 2007 came to N$104,8 million, despite an income of N$854,1 million. Expenditure amounted to N$1,1 billion exceeding income by about N$243 million.
Government had pumped over N$2 billion into Air Namibia over the past few years and the airline had embarked on a turnaround strategy, but there has been no improvement of its financial situation yet.
The financial statements were completed by August 21 2008 by KPMG Accountants and Auditors. Without qualifying our audit opinion total liabilities exceeded its (Air Namibias) total assets by N$486,6 million in the review period ending March 31 2007, KPMG stated in the financial report.
Government as the sole shareholder of Air Namibia not only provided guarantees for the carrier but also provided an unconditional grant of N$153 million for the 2006-2007 financial year. On top of that, Government gave Air Namibia N$536,8 million in the period from April 2007 until the date the financial report was completed in August 2008, which enabled the company to pay off its bank overdraft.
Another financial predicament for Air Namibia and its employees is that the company was unable to pay its contributions for a post-retirement medical benefit fund for quite a while. The debt stood at N$75,4 million in March 2007.
Air Namibia was also in dispute with a local bank about a refinancing agreement. It was agreed during the review period that the bank would waive al its claims against Air Namibia in return for a payment of N$90 million plus interest. The N$90 million was paid by Government.
Another local bank issued guarantees on behalf of Air Namibia in favour of various suppliers for N$1,5 million while a third bank issued another guarantee for a fuel supplier to the tune of N$3,5 million.
The Namibian
Post published in: Economy