WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-09-15 Time: 10:00:02 Posted By: News Poster
By Desie Heita
Windhoek – A bitter tussle has ensued between Minister of Mines and Energy, Isak Katali, and board of directors of the State-owned petroleum company, Namcor, over ways to stop the financial haemorrhaging of the company.
Namcor board members want the ministry to support their proposal for a “three-pillar turnaround strategy” – including a capital injection of not less than N$200 million as working capital.
The ministry has responded with disbelief, saying explanations by the board are unsatisfactory. It has asked for a submission of new rescue measures that do not include the three pillars “as the reason for the company’s predicament”.
Namcor has been incurring financial losses since 2008. During the previous financial year, auditors declared the company as “technically insolvent”.
Katali, who took over from Erkki Nghimtina early this year, made Namcor’s financial woes one of his priorities, asking the board to “categorically state the measures [the board] intends taking to reverse and arrest losses made [thus far]”.
He questions the transparency of Namcor’s agreement with PetroNeft/Glencore, asking the board to provide, among others, detailed cost analysis.
“The ministry felt that it is your fiduciary responsibility to provide all information related to the company’s … fuel import and its financial position in a transparent manner,” Katali wrote to Namcor board on July 27.
Nevertheless, Namcor board continues to defend the deal, saying the “agreement remains undoubtedly the best deal”.
At a presentation to Katali on July 19, the board suggested that the best way to stop Namcor from going bust is for the ministry to support a “three-pillar turnaround strategy” developed in February 2009.
The pillars include additional recapitalisation of not less than N$200 million, adjusting the basic fuel price, and reinstatement of security of supply fuel levy of between 5 cents and 9 cents.
Katali would have none of it, firing off a strongly-worded letter to the board that “your presentation was ambiguous” with no indication of product price, freight costs and discount, if any, from the supplier.
Katali also asked that the next submission of new measures to rescue Namcor “exclude all reference made to cost-reflective pricing like the basic fuel price adjustment, security of supply levy and working capital as a reason for the company’s predicament”.
New Era understands that the ministry’s solution is for the dissolution of the current supply agreement which government officials have said is “not transparent, with terms and clauses that no sound board of directors in any other country could have signed off”.
For the previous financial year alone, auditors declared Namcor “technically insolvent”, with N$354 million in liabilities that exceed assets by N$70 million.
Total losses for the year were at N$257 million. The company has been recording financial losses since 2008.
Katali’s gusto to save Namcor from going bust has polarised the board of directors, the executive management and the Ministry of Mines and Energy, as the line ministry.
As a result, what has been hitherto a boardroom difference of opinion is now a public scuffle so pungent that each party whispers words such as “liars, corrupt officials” and “crooks”.
Confidential correspondences and minutes of meetings between Namcor board and the ministry clearly show differences of opinion on how to make Namcor a profitable institution.
The board of directors – chaired by Electricity Control Board Chief Executive Officer, Siseho Simasiku – does agree with Katali that the company is bleeding financially.
It is now widely believed that Katali would most likely not re-appoint the current board members as they have reportedly failed in their duties.
Original Source: 
Original date published: 15 September 2010
Source: http://allafrica.com/stories/201009150523.html?viewall=1