![Govt 'clueless' on storage facility](https://investigations.namibian.com.na/wp-content/uploads/2017/03/Govt-clueless-on-storage-facility.jpg)
By Shinovene Immanuel | 23 March 2017
REPORT by the attorney general paints government as clueless about many key aspects of the oil storage facility under construction at Walvis Bay, including the absence of a plan to recover the N$5,5 billion being pumped into the project.
The report, part of a cache of confidential documents compiled by attorney general Sacky Shanghala and obtained by The Namibian from treasury sources, details how key questions about the project remain unanswered.
When confronted with the report, attorney general Shanghala declined to comment for this article.
Questions raised in the report revolve around who would own the assets of the facility, what would be the operating model of the facility, what would the cost recovery plan be, and what volumes of fuel products would be stored at the facility.
Other questions concern operating costs, and how the multibillion-dollar project would impact the pockets of the public.
“To the best of my knowledge, there is no operating philosophy that has been devised and agreed for the operation of the (storage) facilities. This is a concern, and points to a lack of preparedness and capacity for the commissioning of the facilities. My advice is to address this matter urgently,” Shanghala stated in a document dated 10 February 2017.
By December 2016, two years after commencing the project, government did not know how it would recover the N$5,5 billion being invested in the project, the attorney general said.
“There was (and still is) no cost recovery mechanism in place. While the NEF (National Energy Fund) would be the primary borrower for the project, treasury acted as guarantor to these loans, which loans were only secured by way of sovereign/government guarantee,” he said.
Shanghala has been heavily criticised in the past over a raft of perceived bad pieces of advice since becoming government’s top legal adviser in 2015, but his supporters have said that the attorney general deserved credit for intervening in the fuel storage facility deal, the cost of which has been escalating.
In addition, Shanghala has also pushed for an investigation into the role of his associates, National Planning Commission permanent secretary Leevi Hungamo and politically connected businessman Vaino Nghipondoka, in the N$5,5 billion project.
The attorney general stated that the cost of the project has ballooned uncontrollably and could, if not checked, result in significant damage and avoidable financial losses to state coffers and the country.
“Left unchecked, in order for the employer (government) to recover its funds, there will be runaway costs of fuel for the consumer, with potentially negative wide-ranging national economic effects. Cabinet is required to act to avoid this,” Shanghala cautioned.
The document shows that Shanghala preferred that the facility be placed under the finance ministry’s control until the N$5,5 billion has been repaid.
Namcor has also pushed to run the facility, but the attorney general was of the opinion that this would create a monopoly as Namcor already handles the distribution of petroleum products across the country.
According to the report, Shanghala suggested that the state should investigate the creation of a new company, falling under NEF or the finance ministry.
This new entity’s board chairperson would be nominated by treasury, and deputised by a director nominated by the attorney general, while the other directors would be the managing directors of Namcor, Namport, NEF, TransNamib and the CEO of the Walvis Bay municipality. No mention is made of private sector involvement at board level, or of qualified directors drawn from the public.
The report also suggested how government could invest in the facility. Apart from the existing fuel levy paid by motorists, and which has generated over N$270 million in 2015, other levies are being proposed. One would be called the infrastructural levy, and would last for 15 years.
“This cost will eventually be passed on to consumers,” Shanghala stated.
Other levies would be the marine facility fees, which would be paid by those who used the offshore facilities, and would be applicable for as long as the storage facility was operational.
Government renegotiated the construction costs of the storage facility last year after it emerged that the price increased from N$3,7 billion in 2014 to N$5,5 billion in 2016.
The construction contract was awarded to CRB, a joint venture between China Harbour Engineering Company, the Roads Contractor Company (RCC) and Vaino Nghipondoka’s Babyface Civils.
Shanghala claimed in the report that the renegotiations with the contractor have resulted in savings to government of over N$200 million. Shanghala declined to comment when contacted about the report yesterday.
Although foreign exchange fluctuations have been blamed for the high construction costs of the storage facility, other sources have cast blame in the direction of Prime Minister Saara Kuugongelwa-Amadhila, who was the finance minister when the contract was awarded.
Kuugongelwa-Amadhila, who declined to comment on the allegations last year, allegedly rejected the advice of some state officials to put in place a strategy to reduce exposure to foreign exchange market fluctutations.
President Hage Geingob has also recently questioned how the construction costs of the fuel storage facility have ballooned to N$5,5 billion.
“Look at the storage facility. Too many people were reckless. We are not targeting anyone. We want blacks to come into the mainstream economy, but they must not take shortcuts,” Geingob pointedly told state-owned New Era on Monday.
pin up azerbaijan: pin up casino az – pin-up
pin up giris https://azerbaijancuisine.com/# pin up azerbaycan yukle
pin up onlayn kazino
buying prescription drugs in mexico online buying prescription drugs in mexico buying prescription drugs in mexico online
https://northern-doctors.org/# medicine in mexico pharmacies
mexican pharmacy: Mexico pharmacy that ship to usa – mexican pharmacy
https://northern-doctors.org/# mexican online pharmacies prescription drugs
mexico drug stores pharmacies: mexican pharmacy online – medication from mexico pharmacy
https://northern-doctors.org/# mexico pharmacy
mexico pharmacy: mexican northern doctors – mexican pharmaceuticals online
mexico drug stores pharmacies Mexico pharmacy that ship to usa mexico drug stores pharmacies
mexican rx online: northern doctors – medicine in mexico pharmacies
mexican mail order pharmacies: mexican northern doctors – pharmacies in mexico that ship to usa
medication from mexico pharmacy: northern doctors – mexican online pharmacies prescription drugs
http://northern-doctors.org/# mexican online pharmacies prescription drugs
pharmacies in mexico that ship to usa: mexican pharmacy – medicine in mexico pharmacies
http://northern-doctors.org/# п»їbest mexican online pharmacies
mexican pharmaceuticals online: mexican pharmacy online – purple pharmacy mexico price list
buying prescription drugs in mexico online northern doctors pharmacy mexican rx online
medication from mexico pharmacy: mexican pharmacy northern doctors – mexican drugstore online
https://northern-doctors.org/# mexican online pharmacies prescription drugs
reputable mexican pharmacies online: mexican northern doctors – mexican border pharmacies shipping to usa
https://northern-doctors.org/# mexican border pharmacies shipping to usa
mexico pharmacies prescription drugs: mexican northern doctors – medicine in mexico pharmacies
medicine in mexico pharmacies mexican pharmacy online medication from mexico pharmacy
https://northern-doctors.org/# purple pharmacy mexico price list
pharmacies in mexico that ship to usa: northern doctors – reputable mexican pharmacies online
buying prescription drugs in mexico online: mexican pharmacy online – п»їbest mexican online pharmacies
https://northern-doctors.org/# medication from mexico pharmacy
mexican online pharmacies prescription drugs: Mexico pharmacy that ship to usa – reputable mexican pharmacies online
https://northern-doctors.org/# buying prescription drugs in mexico online
mexican online pharmacies prescription drugs: northern doctors – mexican pharmacy
https://northern-doctors.org/# buying prescription drugs in mexico
п»їbest mexican online pharmacies: mexican pharmacy northern doctors – buying prescription drugs in mexico
mexican drugstore online: mexican pharmacy online – mexican pharmaceuticals online
https://northern-doctors.org/# mexican online pharmacies prescription drugs
buying prescription drugs in mexico: northern doctors – medicine in mexico pharmacies
http://northern-doctors.org/# buying from online mexican pharmacy
mexico pharmacies prescription drugs: mexican northern doctors – mexican rx online
https://northern-doctors.org/# mexican drugstore online
buying prescription drugs in mexico online northern doctors pharmacy mexican online pharmacies prescription drugs
medicine in mexico pharmacies: medication from mexico pharmacy – mexican rx online
mexican mail order pharmacies: northern doctors – purple pharmacy mexico price list
https://northern-doctors.org/# mexico pharmacies prescription drugs
mexico pharmacy: mexican border pharmacies shipping to usa – п»їbest mexican online pharmacies
https://northern-doctors.org/# best online pharmacies in mexico
buying prescription drugs in mexico online: northern doctors – purple pharmacy mexico price list
medication from mexico pharmacy: mexican pharmacy online – mexico pharmacy
https://northern-doctors.org/# mexico drug stores pharmacies
mexican pharmaceuticals online: mexican pharmacy online – mexican pharmaceuticals online
buying prescription drugs in mexico online mexican pharmacy online buying from online mexican pharmacy
reputable mexican pharmacies online: northern doctors pharmacy – reputable mexican pharmacies online
п»їbest mexican online pharmacies: mexican northern doctors – mexico pharmacy
https://northern-doctors.org/# buying prescription drugs in mexico online
medication from mexico pharmacy: purple pharmacy mexico price list – mexican online pharmacies prescription drugs
mexican border pharmacies shipping to usa best online pharmacies in mexico reputable mexican pharmacies online
https://cmqpharma.com/# buying from online mexican pharmacy
mexican mail order pharmacies
mexico drug stores pharmacies: mexican pharmacy – mexican pharmaceuticals online
mexican pharmacy cmq pharma mexican pharmacy pharmacies in mexico that ship to usa
medicine in mexico pharmacies cmq pharma mexican pharmacy mexico drug stores pharmacies
mexican pharmaceuticals online cmq pharma buying prescription drugs in mexico online
best online pharmacies in mexico
https://cmqpharma.com/# п»їbest mexican online pharmacies
reputable mexican pharmacies online
purple pharmacy mexico price list mexican online pharmacy mexican pharmaceuticals online
mexico drug stores pharmacies cmq pharma mexican pharmacy buying from online mexican pharmacy
mexican rx online cmq pharma mexican pharmacy
mexican border pharmacies shipping to usa mexican pharmacy online mexican mail order pharmacies
pharmacies in mexico that ship to usa online mexican pharmacy п»їbest mexican online pharmacies
mexico pharmacy cmq pharma mexican online pharmacies prescription drugs
https://cmqpharma.online/# medicine in mexico pharmacies
buying prescription drugs in mexico online
Very interesting details you have noted, thank you for posting.Blog monetyze
purple pharmacy mexico price list: mexican pharmaceuticals online – mexico pharmacies prescription drugs
https://foruspharma.com/# mexican drugstore online
indian pharmacies safe: best india pharmacy – top 10 online pharmacy in india
medication from mexico pharmacy: mexico drug stores pharmacies – pharmacies in mexico that ship to usa
indian pharmacies safe: indian pharmacy paypal – reputable indian online pharmacy
77 canadian pharmacy precription drugs from canada canadian pharmacy online
online pharmacy india: world pharmacy india – india pharmacy mail order
https://foruspharma.com/# mexican rx online
mexico pharmacies prescription drugs: mexico drug stores pharmacies – п»їbest mexican online pharmacies
mexico drug stores pharmacies mexican pharmacy medication from mexico pharmacy
best online pharmacies in mexico: mexico drug stores pharmacies – reputable mexican pharmacies online
india pharmacy mail order: india pharmacy mail order – best online pharmacy india
certified canadian international pharmacy: northwest pharmacy canada – best rated canadian pharmacy
https://indiapharmast.com/# top 10 pharmacies in india
cheapest online pharmacy india: buy prescription drugs from india – buy medicines online in india
canadian drugs pharmacy: canadian mail order pharmacy – canadadrugpharmacy com
https://doxycyclinedelivery.pro/# doxycycline order online canada
buy generic ciprofloxacin: where to buy cipro online – buy cipro online usa
https://paxloviddelivery.pro/# paxlovid cost without insurance
paxlovid buy: paxlovid generic – paxlovid pharmacy
http://paxloviddelivery.pro/# paxlovid india
https://doxycyclinedelivery.pro/# doxycycline caps 100mg
order amoxicillin 500mg: medicine amoxicillin 500 – amoxicillin order online
http://paxloviddelivery.pro/# paxlovid for sale
http://ciprodelivery.pro/# buy cipro cheap
doxycycline pills over the counter: doxyciclin – cheap doxycycline 100mg capsule
https://doxycyclinedelivery.pro/# buy doxycycline pills online
doxycycline 100mg capsules: price doxycycline 100mg without prescription – doxycycline capsules
http://amoxildelivery.pro/# order amoxicillin no prescription
http://ciprodelivery.pro/# ciprofloxacin order online
cheapest 40 mg doxycycline: doxycycline 100mg capsules price in india – can you buy doxycycline over the counter in nz
can i order cheap clomid without rx: order generic clomid pills – can you get clomid without insurance