FORMER Swapo business kingpin Festus Naholo claims the party was "penniless" when he took over its business arm and turned it into an multimillion-dollar empire.

By the time he left the party businesses, Naholo said, Swapo was "swimming in a huge ocean of money from dividends" paid by companies it had interests in.

The companies included MultiChoice Namibia which, according to Naholo, pays dividends in excess of N$20 million to the party.

Others are in the fishing, financial and mining sector.

Swapo said it would study Naholo's claims and respond later this week.

Naholo's claim is in sharp contrast to Swapo's claim that he ran the party's business interests into the ground and left Kalahari Holdings with a N$30 million debt.

Naholo addressed a media briefing in Windhoek yesterday to respond to allegations made by President Hifikepunye Pohamba during the 20th anniversary celebration of Kalahari Holdings in December last year.

Pohamba said Naholo and Nghiningilwandubo Kashume had looted the party and mortgaged its property for self-enrichment.

He said the two had mortgaged the company's residential flats and 30 houses and ran down its farm at Grootfontein.

According to Pohamba, most party houses and flats were gone by the time the Politburo woke up.

Naholo, former Swapo Economics Affairs Secretary, said Pohamba was dishonest, deceitful, contradictory, highly slanderous and offensive in his accusations against him and Kashume while hiding behind presidential immunity.

Eight years ago, former President Sam Nujoma made similar allegations against Naholo at the party's congress.

Naholo said Pohamba and Nujoma ought to appreciate what he and Kashume had done for the party - turning residential properties and other assets into income-generating projects.

"Lucas Pohamba and his mentor, Sam Nujoma, know fully well that, after the 1989 Independence elections, Swapo was left penniless.

When Pohamba and Nujoma left for the comfort of paid jobs in Government in 1990, I and many other comrades remained at the party level eking out a meagre living," Naholo said.

He said he then established Kalahari Holdings, Zebra Holdings, Guinas Investments, the Chinese Grand Restaurant and Ceret (a non-governmental organisation).

Those holdings had their own subsidiaries with separate managements and boards, according to Naholo.

Under Kalahari Holdings, Naholo said, subsidiaries such as Namib Contract Haulage, Namib Graphics (now NamPrint), Namibia Protection Services, Omafo Business Centre, MultiChoice Namibia and its subsidiary MWEB, New Dawn Video, Radio Energy, Namangol and several properties and farms were acquired.

Naholo claimed he used his personal finances and property as guarantee for the party's bank loans and denied that he enriched himself as claimed by the Swapo leadership.

In 2002 Nujoma told the Swapo Central Committee as well as the party congress that Naholo had sold the party's mobile radio equipment, worth 25 million British pounds, to the Democratic Republic of Congo.

Naholo described this as a "crafted strategy" and "diversionary tactic" by Nujoma to avoid the revelations contained in a department of economic affairs report stating that Kalahari Holdings had received N$1 million for the equipment.

Naholo claimed that Nujoma orchestrated the deal for the sale and challenged Swapo to investigate what happened to the rest of the money since only N$1 million was deposited into the Kalahari Holdings account.

According to him, Nujoma made him a "scapegoat for his double dealings".

Naholo said he was disheartened by Nujoma's tactics and wrote a letter on August 23 2002 to the then Swapo Secretary General Pohamba, excusing himself from the congress deliberations and declining to stand for the Central Committee seats.

He also asked Pohamba to read his letter at the congress but it was allegedly quashed by Nujoma.

Naholo also denied that he alienated any of the party's houses.

Instead he claimed the party's Central Committee donated houses to veterans Mzee Simon Kaukungwa, Andimba Toivo ya Toivo, David Meroro, Helao la Ndadi and a plot worth N$1,3 million to Nujoma.

Nahaolo said houses were also sold, with the party leadership's consent, to Maxton Mutongolume, Gertrud Kandanga-Hilukilwa, Siegfriedt Wöhler and Hidipo Hamutenya.