20100401
newera

WINDHOEK – After receiving a N$1 billion concessional loan from the Chinese government in 2007, Namibia is yet to put that money to full use as only N$80.8 million has been spent so far.



The concessional loan, signed when Chinese President Hu Jintao led a 130-member delegation to Windhoek in February 2007, runs for three years ending this year.

So far, two projects, one involving the controversial purchase of airport security scanners by the Ministry of Finance last year and that of an installation of the electronic filing system at the Office of the Prime Minister (OPM) also last year, are the only initiatives completed through the 2007 Chinese loan.

Government spent N$42 million on the security scanners that saw the involvement and subsequent arrest of Teko Trading directors Teckla Lameck, Jerobeam Mokaxwa and Namibian-based Chinese national Yang Fan.

The electronic filing system, installed in June last year and dubbed Electronic Documents and Records System (EDRMS), cost government some N$38.8 million.

Newly appointed Deputy Minister of Finance, Calle Schlettwein, yesterday confirmed to New Era upon enquiry that so far government has only completed two projects with the money received from China in 2007.

“Several projects have just been approved and would be embarked upon using that money. There are several individual projects that government has approved and would be funded,” Schlettwein said.

He did not reveal the nature of projects that have been approved by government for funding.

Hu Jintao, upon his 23-hour visit to Windhoek in 2007, also offered Namibia an additional credit line of US$100 million (some N$733 million at current rate), but New Era understands government has ultimately opted not to take the offer.

Namibia and China have agreements in trade and economic cooperation, establishing a joint commission on trade and economic cooperation, a reciprocal treaty for the protection of trade and investments for both Chinese and Namibian businesspeople in the two countries.

It is not clear when Namibia is expected to pay back Beijing’s loans, especially now that the 2007 loan agreement has entered its final year, but Schlettwein insists there is no pressure on government yet to pay the loans.

Meanwhile, Schlettwein has confirmed that there are currently no discussions at government level between China and Namibia about the controversial security scanner deal that saw the latter government unconsciously paying fees to a third party company, Teko, for the purchase of the equipment.

Chinese company, Nuctech, brought Teko on board to supposedly facilitate its deals in Namibia and the Namibian government was invoiced expenses including those incurred by services supposedly provided to Nuctech by the Namibian outfit.

“The Teko thing is in the hands of the ACC (Anti-Corruption Commission) and the Prosecutor-General. The two governments would not risk engaging each other on the subject while the matter is in the hands of the judiciary,” Schlettwein said.