Windhoek High Court acting judge Christi Liebenberg yesterday convicted former CEO of the State-owned Road Contractors Company, Kelly Nghixulifwa, on four counts after a long-running trial spanning almost two decades.
The judge convicted Nghixulifwa on two counts of fraud, a charge of corruptly using his position as chief executive of the State-owned RCC, and a further charge of contravening the Anti-Corruption Act.
His co-accused, Hafeni Nghinamwaami, was convicted on one count of fraud in connection with a payment of N$29 900 that the RCC made to settle an account that a company of Nghinamwaami had with an auditing firm in 2006.
A third accused, Anna Ndoroma, who was implicated in the matter because she was a director of Nghinamwaami’s company, Cradle Investments, was acquitted on a count of fraud related to the same charge.
They faced charges of fraud and contravening the Anti-Corruption Act after the RCC became involved in developing the B1 City project opposite the Katutura State Hospital in 2004. At the centre of the matter is a loan of N$4.8 million that Nghixulifwa allegedly secured for Ae//Gams Engineering to purchase Erf 10485, along Independence Avenue, without declaring his interest in the company.
Nghixulifwa, who resigned after the ambitious supposed construction of B1 City went belly-up, faced 11 charges of fraud and contravening the Anti-Corruption Act, while Ndoroma faced four counts and Nghinamwaami four counts. He was, however, successful after a section 174 application and was only put on his defence on eight charges, while Nghinamwaami successfully staved off two counts, and Ndoroma one count.
During his judgment yesterday, Liebenberg said Ndoroma was just at the wrong place at the wrong time, and that the State failed to prove she had any part in the scheme.
With regards to Nghinamwaami, he said the State proved that he pretended to be part of the tripartite agreement between RCC and a joint venture partner, and that he signed documents.
This manifested to a misrepresentation, Judge Liebenberg found. He further said Nghixulifwa cannot now put the blame on his managers, as it was proven that he had his finger on the pulse of everything happening at the RCC.
According to the judge, he ran the RCC like his own private business. Assertions by Nghixulifwa at this late stage that he left the running of the company in the hands of his subordinates are a little too late, to say the least, the judge remarked.
He further said evidence was led by the State that the former CEO was directly involved in the deals pertaining to the initial involvement of RCC with the B1 City development. He chaired the meetings where the details were discussed. He further said Nghixulifwa acted outside his scope of authority.
The matter will continue today with pre-sentence proceedings, and the bail of both Nghixulifwa and Nghinamwaami were extended.