By Confidente Reporter
NSFAF board chairperson Patty Karuaihe-Martin has been accused of abusing her power and negotiating an N$144 million loan deal with Bank Windhoek on behalf of the fund without consulting the executive of the organisation.
The loan which was approved by the bank on October 12 2015 was for the construction of the NSFAF headquarters.
Details to the matter emerged when NSFAF CEO, Hilya Nghiwete who has claimed to be at the receiving end of rampant victimisation and harassment from Karuaihe-Martin raised the loan issue in a letter penned to the Higher Education Minister, the Minister of Finance, the Minister of Public Enterprises and the other NSFAF board member expressing her grievances and the alleged disempowerment to carry out executive duties of the fund.
Nghiwete clearly states in the letter that Karuaihe-Martin discussed the loan deal with Bank Windhoek without discussing it with the organisation and as this came to light at a meeting with bank scheduled to discuss the tender issue, the rest of the board members were shocked that even the tender amounts had already been quoted.
“There is no truth in those allegations and I think maybe you should ask the bank,” refuted Karuaihe-Martin when Confidente quizzed her about the matter.
However this publication was privy to a letter that Bank Windhoek wrote to Karuaihe- Martin on October 12 last year titled ‘Offer to finance the construction of NSFAF offices’ which prologues with the reading: “We have the pleasure in advising that your application has been approved in principle subject to the collateral and special condition”.
The letter written by Bank Windhoek Executive Officer for the corporate and executive banking division Lukas Nanyemba states that the loan amount of N$144 million was approved and 20 percent own contribution being N$36 million was to be utilised first before the banks funds can flow. “The utilized loan amount during the construction phase will bear interest at the Bank’s Prime Rate ( at present 10.75percent per annum), which interest rate may be adjusted by the Bank from time to time in accordance with the conditions of the loan agreement.
“Once the construction phase has been completed, a more favourable finance package will be investigated and considered. Pricing and fees for these facilities will be determined considering market condition at the time,” writes Nanyemba in the approval letter. The repayment term of the loan was pegged at 180 months and early redemption would be allowed without penalty.
The bank also asked for a first covering mortgage bond for N$180 million over the said erf as collateral. Efforts to get comment from Nghiwete were fruitless as she was not reachable.
Confidente. Lifting the Lid. Copyright © 2015