TransNamib executives and staff who were flagged in a forensic report done by auditing firm Ernst and Young (E&Y) are now off the hook after the Anti-Corruption Commission (ACC) cleared them from any corrupt practices.
However, the corruption watchdog said the national rail operator was dogged by serious administration issues which need to be addressed.
Finance Minister Iipumbu Shiimi told parliament the E&Y report was submitted to ACC, as per section 29 (4), to review and identify if there is any possible corruption or any matter in the report that may fall within the ACC Act.
“The Commission has responded to my office last week and has expressed themselves that after a proper analysis, they did not find any issues raised in the report to be of corrupt practices, or anything that would be under their ambit as the ACC.
“They have, however, indicated that there are some serious administrative inefficiencies raised in the report that must be taken up by the Board for further investigation and actions,” he said in response to questions posed by NEFF’s parliamentarian Kalimbo Iipumbu, who wanted to know the progress and what action has been taken against those suspected of wrongdoing at TransNamib.
“As a result, my office will identify all the critical issues raised in the report and will request the Board to review the E&Y report and take appropriate action where necessary,” Shiimi said.
Kalimbo wanted to know when the report would be made public, but Shiimi said the document was an internal matter.
“The report is an internal report to the Ministry and was specifically only for the purposes of clarifying certain matters which have now been done. It is therefore not in the best interest of the organisation to release this report to the public,” he said.
In addition, the NEFF MP wanted an explanation from the minister on what guarantees are in place to ensure that TransNamib will not be troubled by industrial action again.
“MPE as the shareholder ministry of TransNamib does not get involved in wage negotiations or the agreement thereof. However, I met with the three parties involved with the specific aim of mediating and creating an amicable and conducive environment for the Board, Executive and Union to work together. As a Ministry we have faith in the Board and Management of TransNamib, and we are confident that what happened in the recent past will be a learning experience for all stakeholders,” the minister said.
Shiimi said TransNamib still has financial challenges and legacy challenges were being addressed.
“The company has also put in place a short-term plan to address and improve the current operating conditions. This is currently done through the current financial support from the government for this financial year whilst the company is working towards the implementation of its Integrated Strategic Business Plan,” he said.
The national railway operator is currently incurring a N$10 million monthly loss due to delays in securing funding for its Integrated Strategic Business Plan (ISBP), is disposing its non-core properties around the country as it seeks to raise at least N$2.5 billion needed for the implementation of its turnaround plan.
TransNamib’s strategic plan had hoped to make a financial breakthrough in 2023, attaining a trustworthy customer experience by transporting three million metric tonnes of cargo by 2023.
The company, which is banking on a Development Bank of Namibia and Development Bank of South credit facility to fund its turnaround strategy to the tune of N$2.6 billion, has blamed its precarious financial position on salary increases and benefits awarded to staff over the years despite accumulated losses amounting to over N$4 billion for the 2010-2017 period.
