Uanguta reserved on planned Namcor interventions
Ebson Uanguta, the interim managing director of Namcor, says the introduction of reforms is key in securing long-term sustainability at the national oil company.
He would, however, not elaborate on exactly which reforms would be implemented.
Uanguta made the remarks recently following his temporary appointment at the entity.
Seconded from the Bank of Namibia (BoN) where he serves as deputy governor, he was roped in to steady the ship at Namcor following the suspension of current managing director Imms Mulunga.
Uanguta will also oversee a turnaround strategy supported through treasury efforts, following a N$1.2 billion cash injection by government to ensure Namcor remains a going concern.
“There are things we need to do, necessary reforms, that will stabilise the institution and prepare it with the right structures in place for its long-term sustainability,” he said.
Unprecedented loss
As at 31 March 2023, Namcor’s unaudited financial statements confirmed that the entity made an unprecedented loss of N$700 million.
The company owed its suppliers N$2.5 billion as at May 2023, and was able to drive down its debt to N$1.6 billion. The debt reduction was, however, not substantial enough to dissuade its creditors. Among them, Emirati firm Augusta Energy is owed N$176 million. The company threatened to take over oil stock belonging to Namcor.
As part of efforts to turn the company around, Namcor - in its recovery strategy - outlined measures to stop leakages and improve corporate governance standards.
“This was coupled with a significant working capital deficit, which created significant cash-flow challenges in the company. In May 2023, Namcor management and the board carried out an extensive diagnostic to determine the factors that contributed to the entity’s precarious financial position. This exercise culminated in the development of a recovery plan, in which 10 factors were considered as the root cause,” the company said last November.
In 2010, government approved a bailout strategy for Namcor, which included paying off debts to the tune of nearly N$260 million.
He would, however, not elaborate on exactly which reforms would be implemented.
Uanguta made the remarks recently following his temporary appointment at the entity.
Seconded from the Bank of Namibia (BoN) where he serves as deputy governor, he was roped in to steady the ship at Namcor following the suspension of current managing director Imms Mulunga.
Uanguta will also oversee a turnaround strategy supported through treasury efforts, following a N$1.2 billion cash injection by government to ensure Namcor remains a going concern.
“There are things we need to do, necessary reforms, that will stabilise the institution and prepare it with the right structures in place for its long-term sustainability,” he said.
Unprecedented loss
As at 31 March 2023, Namcor’s unaudited financial statements confirmed that the entity made an unprecedented loss of N$700 million.
The company owed its suppliers N$2.5 billion as at May 2023, and was able to drive down its debt to N$1.6 billion. The debt reduction was, however, not substantial enough to dissuade its creditors. Among them, Emirati firm Augusta Energy is owed N$176 million. The company threatened to take over oil stock belonging to Namcor.
As part of efforts to turn the company around, Namcor - in its recovery strategy - outlined measures to stop leakages and improve corporate governance standards.
“This was coupled with a significant working capital deficit, which created significant cash-flow challenges in the company. In May 2023, Namcor management and the board carried out an extensive diagnostic to determine the factors that contributed to the entity’s precarious financial position. This exercise culminated in the development of a recovery plan, in which 10 factors were considered as the root cause,” the company said last November.
In 2010, government approved a bailout strategy for Namcor, which included paying off debts to the tune of nearly N$260 million.
Comments
Namibian Sun
No comments have been left on this article