John Grobler
3 July 2009
NAMIBIA Wildlife Resorts Company (NWR) Managing Director Tobie Aupindi has denied that the State resort operator recorded its biggest-ever financial losses ever last year, insisting that his turnaround strategy is yielding "very positive results".
Aupindi said in interview this week that accumulated losses "would be less" than N$180 million, but declined to make specific figures available without NWR's board approval.
In its March 2009 Ministerial Accountability Report, the Ministry of Environment and Tourism (MET) states that the NWR was set to make a projected profit of N$24,5 million for the past financial year, which profit was to increase to N$44,07 million in 2009-10.
But NWR figures reported in the Medium Term Expenditure Framework (MTEF) showed that as of March 31 2007, the company was bankrupt to the tune of N$65 695 677.
Aupindi, who took over as MD on April 20 2006, agreed that this was the case but put it down to failures of the previous management. The real problem was that the State had taken nearly 10 years to transfer the resorts to NWR, and " without assets, no company can ever make a profit", he said.
He explained his turnaround strategy as one of replacing the NWR's out-dated computer systems, as well as retraining all 800 NWR staff into adopting "a service culture", adding that not all were " trained to the same level".
A closer look at the state of the NWR however revealed serious financial problems, apart from the dilapidated state of the resorts under its management.
The 2006-7 audit had to be qualified because of liabilities of nearly N$6 million in the NWR's suspense accounts, an amount of N$4 million for advance bookings and N$5,7 million in leave pay provisions.
"There was no reliable system of control available to the external auditors for these accounts. The auditors emphasised that as the company's total liabilities exceeded its total assets by N$65 595 677, the company was rendered technically insolvent, and thus depended on the support of its shareholder and bankers to continue its activities," the report stated.
The MTEF figures further paint a picture of the NWR sliding ever deeper into debt, with accumulated losses standing at N$116 million as of March 31 2007. Long-term liabilities (in the form of government loans) stood at N$55,628 million.
Bank overdrafts, it showed, were used to finance NWR operations and lavish management perks, including the refurbishment of its head office: the over-draft shot up from about N$11,5 million in 2005 to N$24,36 million by end 2006, increasing to N$28,5 million in the following year.
Aupindi said this was now reduced to N$10 million, but said the company had used N$60 million advanced by the Old Mutual Medina fund in terms of a Government-guaranteed loan of N$120 million.
In addition, the NWR had also received several transfers from the N$117,3 million MET Tourism Development Fund, it was established. Aupindi, who was earlier questioned in this regard by e-mail, did not comment.
Asked why the NWR needed so much more cash if it was effectively outsourcing its own core function, Aupindi, insisted this was to " re-position the NWR in the international market".
He defended the 2008 empowerment deal - which saw Von Bach, Daan Viljoen Park, Reho Spa and the West Recreational Park handed over to BEE companies for periods of up to 100 years - as totally transparent.
Aupindi also insisted that NWR's controversial leasing of half of the Von Bach camp - as opposed to the two small Von Bach campsites only - for 100 years to Tungeni Africa for a 240-home 'Lifestyle Village' was entirely legitimate.
The fact that certain resorts - including Von Bach, Hardap, Popa Falls, Waterberg Plateau Park and Ais-Ais - were not transferred with the other resorts in August 2007 had nothing at all to do with the fact these resorts all consisted of major potable water resources.
These were now in the process of being transferred from the Ministry of Agriculture, Water and Forestry (MAWF), he insisted. "It is Government land and the Government can do with this as they see fit," Aupindi said, echoing similar line voiced by other key officials involved.
MAWF Permanent Secretary Andrew Ndishishi could not be reached for comment.
John Grobler is a freelance journalist.
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