Namcor Board Reviews Report on Internal Maladministration Causing Financial Strain

Oshikoto – The National Petroleum Corporation of Namibia (Namcor) is currently under scrutiny as its board of directors reviews an investigation report regarding internal maladministration, which contributed to a net loss of N.dollars 700 million. Namcor is grappling with a financial crisis, owing N.dollars 1.9 billion to multiple petroleum suppliers.

According to Namibian Press Agency (NAMPA), Namcor’s board chairperson, Jennifer Comalie, informed at a press conference on Thursday that an independent consultant was engaged in April 2023 to investigate the financial losses starting in the third quarter of the 2022 fiscal year. The investigation aims to pinpoint the causes of the losses and identify responsible parties. Comalie acknowledged that the losses stemmed from breaches in internal controls, governance systems, and market volatility.

Namcor’s acting managing director, Shiwana Ndeunyema, admitted that the corporation lacked internal control mechanisms to counteract external economic shocks, such as the COVID-19 pandemic and the Russia-Ukraine war. These external factors, coupled with significant breaches in internal controls, led to the financial downturn. Ndeunyema emphasized Namcor’s commitment to accountability and the implementation of a recovery plan to address the working capital deficit.

While the exact figure needed for a government bailout was not specified, Ndeunyema outlined various scenarios for financial recovery. The focus remains on addressing the working capital deficit and seeking decisive capital intervention from shareholders.