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Home / Ruacana drags feet on N$5.5m scandal… still no action against implicated officials

Ruacana drags feet on N$5.5m scandal… still no action against implicated officials

2022-06-09  Aletta Shikololo

Ruacana drags feet on N$5.5m scandal… still no action against implicated officials

Almost three months after an investigation into the disappearance of over N$5.5 million at the Ruacana town council was completed, the local authority is still indecisive and has not yet implemented recommendations as suggested by the line ministry. 

The alleged missing funds were unearthed when the Ministry of Urban and Rural Development investigated reports of mismanagement at the Omusati town. 

The funds, which the council failed to account for, were allegedly meant for the drilling of boreholes, construction of gravel roads, stormwater channels and electrification of Oshifo 2 and 3.

 

Drilling of boreholes

According to the ministry’s investigation, during the 2020/2021 financial year, the council budgeted N$4 million for capital projects, including funds for the drilling of boreholes at Oshifo and Ruacana proper. 

It then requested the ministry to disburse funds for the borehole projects, using forged documents.

Investigation documents seen by New Era show that upon enquiry by the ministry, Juandre Marais of JV Drilling CC denied having been ever appointed to carry out any drilling work at Ruacana, maintaining he had only submitted a quotation to the council. Based on the ministry’s report, Isai Hipudilo, who is now the acting CEO, admitted to having forged documents to effect payments. 

Hipudilo was the finance manager at the time.

The forged documents allegedly included the fabricated minutes of the procurement committee meeting, tax invoices as well as the appointment letters of two service providers - JV Drilling CC and GM Electro Mechanical Solution. 

The fake documents were allegedly signed by the then secretary of the procurement committee Ngatangue Tjambiru and Hipudilo on behalf of the chairperson of the procurement committee.

“The forged invoice for N$1 126 908, in favour of JD Drilling CC, is stamped and certified by the council. And an invoice of N$1 030 042.35, belonging to GM Electro Mechanical Solution, was also signed, stamped and certified by the council,” states the document.

 

Gravel roads and stormwater channel 

The approved budget for the construction of the gravel road and stormwater channel at Oshifo Extension 1 & 2 for the 2017/18 financial year was N$3 million.

At the time, Tulipamwe Consulting Engineers was appointed as the consultant for the project, while Kambwa Trading cc was awarded a contract amounting to N$2.7 million.

The investigation revealed that during that financial year, the town council requested the ministry to transfer an amount of N$1.2 million, attaching fake invoices: one amounting to N$755 245.61 and another of N$1 005 245.61

Although the amounts were paid to the council, the funds were not paid to the consultant.

“The remaining balance on fictitious invoices forwarded to the ministry in respect of the project for Tulipamwe Consulting Engineers is N$780 101. On 17 July 2018, the ministry transferred an amount of N$1 646 393.80 as per the council’s request via fictitious invoices; however, the council only paid N$1 247 345.96 to Kambwa Trading cc, and a difference of N$399 044.84 could not be explained by the council,” the document reads.

Former town CEO Emily Nanyeni told the ministry the difference between the amount requested by the council and the one paid out to contractors was caused by an overstatement on the first invoice by Kambwa Trading cc.

The ministry instructed the council to hold Nanyeni and Tulipamwe Consulting Engineers accountable.

The ministry directed that Tulipamwe Consulting Engineers be held accountable for issuing a fictitious invoice and payment certificate in the amounts of N$1 284 412.91 and N$1 646 393.80, and Nanyeni for requesting the ministry to transfer money, using falsified invoices.

 

Provision of electrical services 

During the financial year 2016/17, the council has also requested the ministry to transfer funds, amounting to N$29 593.81, again using false invoices.

The amount was meant to pay the consulting engineers for the electrification of Oshifo.

The report states that the council could not provide ministry investigators with the project budget, advertisement, procurement minutes, appointment letters and site meeting minutes.

Among the accused are Hipudilo, who allegedly drafted the fake minutes, forged the signature of the procurement committee’s chairperson and changed quotations to invoices without the contractors’ knowledge and Tjambiru, who allegedly signed fake minutes of the procurement committee meeting. 

Nanyeni is accused of signing the forged recommendation minutes and claiming funds from the ministry, using forged invoices.

Tjambiru has since resigned, while Nanyeni’s contract ended last year.

They have refused to comment on the allegations.

 

No action

In a letter dated 22 April 2022, minister Erastus Uutoni directed the council to act on the findings and recommendations. 

He also instructed the town council to submit to his office a plan of action, indicating how it intends to implement the recommendation contained in the investigation report.

When approached for a comment, town mayor Linda Mbwale said the council has not taken action against Hipudilo and those implicated because of internal delays within council and the ministry.

“In a previous council meeting we had, we sent a letter to the ministry to advise on the way forward because we cannot suspend the acting CEO, as that should come from the ministry,” she said.

On the contrary, Uutoni told New Era the ministry has already instructed the council on what they should do.

“As far as I can remember, we already handled that investigation, and we have given the matter into the hands of the council to make a decision – whether to dismiss or refer the case to the Anti-Corruption Commission,” he said.

Asked how the council is going to hold the trio implicated in the saga accountable, as instructed by the minister, Mbwale responded: “But they are no more part of the council. Where are we going to find them? They are no more with us.”

Mbwale added the action against Hipudilo was not taken yet because “people” were busy.

“There have been quite a lot of meeting as of late, and the council is yet to sit and discuss,” she said.

Linea Shikale, a member of the council, said Hipudilo was preoccupied with other commitments; hence, a decision was not taken yet. - ashikololo@nepc.com.na


2022-06-09  Aletta Shikololo

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