By Engel Nawatiseb
Otjiwarongo
Chief Executive Officer of the Central North Regional Electricity distribution Company (CENORED) Mburumba Appolus says his company posted an accounting loss of N$7 million in the financial year ended June 2006.
The loss partly resulted from the N$15 million paid over to shareholders in the form of local authorities, and surcharges imposed by the regulator, Electrical Control Board (ECB).
While blaming the local authority surcharges for some of the financial difficulties of his company, he said charges forced management to be extremely prudent, thrifty and nimble in the handling of the company’s financial affairs.
CENORED obtained N$11.5 million from the Development Bank of Namibia (DBN) to cover a NamPower guarantee (N$5m) and N$6.5m for capital expenditure.
This long-term loan was a critical lifeline to what is described as a woefully under-capitalized company, and allowed management to continue successfully carrying out operations.
Appolus said his management had also been instrumental in successfully bringing the relatively new company to its feet.
He noted that the Herculean task of establishing and making a new company operational from scratch is often not appreciated.
This applied even to people supposedly “in the know”, such as regulators, shareholders and directors.
The geographic spread and technical nature of the company, he added, increased the difficulty and complexity of establishing the RED.
Listing the achievements of the company since its establishment, Appolus stated that 69 local authority electrical department employees were transferred without any disruptions. All identified employees reportedly accepted transfer without hesitation.
“Staff transfer was one of the must critical and sensitive elements of establishing a RED. One of the first tasks carried out was to create a recognised logo and brand slogans that had the effect of creating a strong awareness and association with CENORED in the minds of customers, employees and other stakeholders.
“This facilitated the smooth transfer of 24ǟ