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: 2010-09-21 Time: 12:00:02 Posted By: News Poster
By Jo-Mare Duddy
NAMCOR wants “at least N$150 million” from State coffers for the losses it suffered since 2008 because Government has been refusing to change the basic fuel price (BFP), which the company claims is one of the major reasons that it was technically insolvent to the tune of N$216 million by the end of August this year.
In March, the end of Namcor’s financial year, the company still showed a profit of N$12 million for 2009-10, albeit because of a Government bailout of N$100 million late last year after it suffered a loss of N$257 million for 2009-08.
Namcor has asked Government for a working capital injection of N$200 million in July.
In a letter Namcor Chairman Siseho Simasiku wrote to Mines and Energy Minister Isak Katali, he warns that “the longer this situation remains uncorrected, the greater the risk of the N$200 million growing to N$250 million or even N$300 million”.
In addition Namcor wants Government to adjust fuel prices to be “truly cost reflective” and to introduce a fuel levy of 13,6 cents a litre to cover the company’s operational costs.
According to Namcor, it needs more than N$200 million a month just to pay for fuel imports. The company supplies 50 per cent of all Namibia’s fuel needs.
Because Namcor hasn’t entered the retail market yet and therefore doesn’t form part of the entire fuel supply chain like the oil companies, it currently does not get a cut from the retail fuel price like the oil companies do.
“In a rising market Namcor is currently subsidising the motorist with more than N$1 per litre,” Namcor Managing Director Sam Beukes said in a letter to Mines and Energy Joseph Iita in May.
A secret Cabinet memorandum stated that “the very basis of the BFP formula, i.e. the assumption that all products are imported from South Africa, makes it inappropriate as a pricing mechanism for Namcor, creating significant exposures because Namcor sources its products from the international market”.
Namcor’s decision to source fuel internationally has caused great tension between the company and the Ministry.
In a letter Iita wrote to Beukes in 2008, he expressed his “deepest concern that Namcor had never involved us [the Ministry] in its decision to source refined petroleum products internationally”.
Namcor then already blamed its losses on the BFP and tried to reclaim its under-recoveries.
According to Iita “this is the result of Namcor’s failure to consult the Ministry before venturing into this kind of trading”.
He said “it is really very much unfair for Namcor to come back to the Ministry when the going gets tough”.
Iita continued: “You were expected to find cheaper products in the market and make a profit at the prescribed selling price and not to escalate the prescribed selling price in the country.
“Namcor was supposed to be shrewd and negotiate a deal that would be profitable to itself and by extension the country but not to become another financial strain on public resources.”
The PS said “it is high time that Namcor, especially the board, due to its fiduciary responsibility and obligations to the shareholder [Government] should have come up with mitigating measures including determining whether Namcor should continue going in the same direction”.
“We strongly inform the Namcor board to know that if Namcor continues to pursue this line of operation, the responsibility for the final outcome on the future of Namcor lies entirely with you , not with the Ministry of Mines and Energy. Therefore, the board of Namcor should take its corporate responsibility seriously,” Iita said.
Until December 2007 Namcor sourced all its fuel imports from South Africa. However, due to increased demand, South Africa became a net importer of petroleum products themselves and South African refineries were no longer willing to supply Namcor with competitive rates, Simasiku explained to Katali in his letter in July.
“Namcor then took the strategic decision to source its supply on the international market in order to ensure security of supply. This has the advantage of providing long-term security of supply, but exposed Namcor to significant foreign exchange and fuel price risks and effectively increased the landed fuel price risks,” he said.
Original Source: 
Original date published: 21 September 2010
Source: http://allafrica.com/stories/201009210155.html?viewall=1