Swapo’s profit-driven business empire
Push to reduce party’s dependency on donations
James Uerikua of Zebra Holdings says Swapo companies are run by the books and are committed to transparency.
The ruling party’s business wing is pushing to bolster the financial capacity of the party in a bid to limit its dependency on donations.
The party recently announced a raft of changes to the composition of the boards of its four companies for the next three years.
The boards of these companies will be chaired by Development Bank of Namibia head Martin Inkumbi (Kalahari Holdings), Paulina Haindongo (Guinas), James Uerikua (Zebra Holdings), and Elmo Kaiyamo (CERET, not for profit).
Uerikua, during an interview with Namibian Sun, said they are taking their roles seriously to ensure the party does not depend on donations.
"Swapo has transformed itself now, and it is our duty to ensure Swapo is not dependent on donations. Swapo companies are run by the book, and our mantra is to be above board. Swapo is committed to transparency; every Swapo company has a good track record, that is why they land the contracts they have," he said.
Range of sectors
The youthful governor’s ambition for the party to reduce its donation dependency comes at a time when the party is still struggling to shrug off allegations that it benefitted millions through donations from the controversial Fishrot syndicate.
Uerika, who also serves as the regional governor of the Otjozondjupa Region, says he is ready for the task at hand.
He further dismissed claims that the party's companies have been favoured in the allocation of state tenders compared to their privately-owned counterparts.
He stressed the need to strengthen the governance structures of all party companies and to evaluate every director to make sure skills are put where they are needed.
"We have to establish what our leverage is and what our challenges are, and if necessary, we must revise the business model. We have to ensure we include those from the marginalised communities and the differently-abled people," he said.
The ruling party is active in a range of key sectors of the Namibian economy, including property, farming, media, fishing, transport, printing, security, healthcare and mining.
‘Proper mechanisms’ in place
Swapo’s commercial entities have often faced accusations of receiving favourable treatment from the Swapo-led government when it comes to landing state contracts and other public procurement-related activities.
But the executive director in the prime minister’s office, I-Ben Nashandi, was quick to point out that strict measures have been implemented to ensure that Swapo companies do not receive preferential treatment.
He challenged those that claim Swapo companies are receiving favourable treatment to provide the necessary evidence, adding that "government’s procurement processes are not run from those companies, and we have systems in place, unless you can say exactly where it is occurred.
"Our procurement is handled by a proper mechanism. In fact, every public servant is expected to give a declaration when they assume duty in the public sector. They must declare everything, including where they are associated and where they have shareholding, and if they are elected to a procurement committee, then they must do this again, and if it is found that that they are in conflict of interest, they must recuse themselves," he said during a telephonic interview yesterday.
Rule of law
While government remains adamant that Swapo firms are not receiving preferential treatment, analysts are more wary.
Governance expert Tui Tyitende believes there is a likelihood that ruling party companies will be favoured for state contracts because they operate in areas where private citizens also operate.
"Mind you, the chief financial officer of Kalahari Holdings was appointed two months ago to serve on the Central Procurement Board. The question you need to ask is whether that is a conflict of interest or a direct pursuance of interest. That in itself is problematic in managing perceived conflict of interest," he said.
Tyitende said the party is not worried about the criticism in this regard because there have been many senior government officials appointed to party structures.
Inkumbi, who chairs the board of Kalahari Holdings, said the company "will continue respecting the rule of law and best practices in conducting its business".
"Your questions are unrelated to my mandate as chairperson of a private company, and I have no comment on them. It is a PTY Ltd., a proprietary limited company. I serve as chairman of KH and have no role in any party," he said.
Kalahari Holdings is the party’s biggest company.
In 2015, The Namibian reported that Kalahari Holdings fully owns six subsidiaries: Namib Contract Haulage (NCH), Namprint, Kudu Investment, Ndilimani Cultural Troupe, Kalasota Mining Enterprises and Klondike Investments.
Kalahari is in joint venture ownership with MultiChoice Namibia, Namibia Protection Services, Radio Energy, Africa Online, Farm De Rust, Sun Karros, Nabimar and Namhealth.
Kaiyamo was not available to provide comment yesterday.
[email protected]
The party recently announced a raft of changes to the composition of the boards of its four companies for the next three years.
The boards of these companies will be chaired by Development Bank of Namibia head Martin Inkumbi (Kalahari Holdings), Paulina Haindongo (Guinas), James Uerikua (Zebra Holdings), and Elmo Kaiyamo (CERET, not for profit).
Uerikua, during an interview with Namibian Sun, said they are taking their roles seriously to ensure the party does not depend on donations.
"Swapo has transformed itself now, and it is our duty to ensure Swapo is not dependent on donations. Swapo companies are run by the book, and our mantra is to be above board. Swapo is committed to transparency; every Swapo company has a good track record, that is why they land the contracts they have," he said.
Range of sectors
The youthful governor’s ambition for the party to reduce its donation dependency comes at a time when the party is still struggling to shrug off allegations that it benefitted millions through donations from the controversial Fishrot syndicate.
Uerika, who also serves as the regional governor of the Otjozondjupa Region, says he is ready for the task at hand.
He further dismissed claims that the party's companies have been favoured in the allocation of state tenders compared to their privately-owned counterparts.
He stressed the need to strengthen the governance structures of all party companies and to evaluate every director to make sure skills are put where they are needed.
"We have to establish what our leverage is and what our challenges are, and if necessary, we must revise the business model. We have to ensure we include those from the marginalised communities and the differently-abled people," he said.
The ruling party is active in a range of key sectors of the Namibian economy, including property, farming, media, fishing, transport, printing, security, healthcare and mining.
‘Proper mechanisms’ in place
Swapo’s commercial entities have often faced accusations of receiving favourable treatment from the Swapo-led government when it comes to landing state contracts and other public procurement-related activities.
But the executive director in the prime minister’s office, I-Ben Nashandi, was quick to point out that strict measures have been implemented to ensure that Swapo companies do not receive preferential treatment.
He challenged those that claim Swapo companies are receiving favourable treatment to provide the necessary evidence, adding that "government’s procurement processes are not run from those companies, and we have systems in place, unless you can say exactly where it is occurred.
"Our procurement is handled by a proper mechanism. In fact, every public servant is expected to give a declaration when they assume duty in the public sector. They must declare everything, including where they are associated and where they have shareholding, and if they are elected to a procurement committee, then they must do this again, and if it is found that that they are in conflict of interest, they must recuse themselves," he said during a telephonic interview yesterday.
Rule of law
While government remains adamant that Swapo firms are not receiving preferential treatment, analysts are more wary.
Governance expert Tui Tyitende believes there is a likelihood that ruling party companies will be favoured for state contracts because they operate in areas where private citizens also operate.
"Mind you, the chief financial officer of Kalahari Holdings was appointed two months ago to serve on the Central Procurement Board. The question you need to ask is whether that is a conflict of interest or a direct pursuance of interest. That in itself is problematic in managing perceived conflict of interest," he said.
Tyitende said the party is not worried about the criticism in this regard because there have been many senior government officials appointed to party structures.
Inkumbi, who chairs the board of Kalahari Holdings, said the company "will continue respecting the rule of law and best practices in conducting its business".
"Your questions are unrelated to my mandate as chairperson of a private company, and I have no comment on them. It is a PTY Ltd., a proprietary limited company. I serve as chairman of KH and have no role in any party," he said.
Kalahari Holdings is the party’s biggest company.
In 2015, The Namibian reported that Kalahari Holdings fully owns six subsidiaries: Namib Contract Haulage (NCH), Namprint, Kudu Investment, Ndilimani Cultural Troupe, Kalasota Mining Enterprises and Klondike Investments.
Kalahari is in joint venture ownership with MultiChoice Namibia, Namibia Protection Services, Radio Energy, Africa Online, Farm De Rust, Sun Karros, Nabimar and Namhealth.
Kaiyamo was not available to provide comment yesterday.
[email protected]
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