Africa-Press – Namibia. AN INVESTIGATION into alleged corruption at the military company August 26 Textile and Garment Factory found that around N$40 million has been transferred to Dubai, the United States, Malaysia and Brazil to allegedly buy pillows, uniforms and other goods for soldiers.
Police investigators believe some of these goods were never delivered and that the funds were instead diverted to the personal accounts of certain individuals.
The payments were allegedly made between 2013 and 2016 for military uniforms, security ‘products’, defence force printed pillows, bags, metal zippers, and buttons, among others.
These details are contained in bank records and other documents that are part of an investigation into August 26 Textile and Garment Factory, a state-owned company that was allegedly used to enrich military generals and their cliques in deals worth more than N$200 million.
The transactions provide a rare insight into Namibia’s secretive military spending and potential corruption in the procurement system. August 26 Textile and Garment Factory was shut down last year, partly because of mismanagement and alleged corruption.
One of former defence minister Peter Vilho’s requests upon resigning this year was an investigation into August 26, which is owned by the defence ministry.
When Frans Kapofi took over as minister of defence and veterans affairs, he promised the investigation into August 26 Holdings was in full swing. He told parliament earlier this year that the investigation relates to fraud, theft, tax evasion and money laundering.No one has been arrested thus far.
August 26 Holdings owns August 26 Textile and Garment Factory, a government company started by the military to manufacture safety wear, corporate wear, workwear, and school uniforms.
PAYMENTS A company called GoldBay Resource in Malaysia appears to have been the go-to entity to buy military merchandise for the defence ministry during the years under investigation.
Bank records show that August 26 Textile and Garment Factory made payments to GoldBay Resource in Malaysia of around N$3,8 million between November 2013 and 2014. Part of the money was spent on buying pillows, bed sheets and metal zippers, among others. It’s unclear if these goods were delivered.
The other company is Unimil Military Uniforms Corporation in the United States, which was allegedly paid N$10,3 million between 20 October and 30 November 2015 for military uniforms.
August 26 Textile and Garment Factory also transferred N$2,2 million to Unimil Uniformes Militares LTDA in Brazil for uniforms. The state-owned military company allegedly paid a Dubai-based company, Star Security Systems, N$4,1 million between 2013 and 2014.
In Hong Kong, two companies, Kent Uniforms Limited (N$4,6 million) and Far East Security (N$10,1 million), were allegedly paid by August 26 Textile and Garment Factory between 2015 and 2016.
Part of the money was used to buy 2 000 training uniforms (N$924 000), 1 000 pairs of trousers (N$81 000), 1 000 Namibian Defence Force (NDF) tactical vests (N$557 000), 2 000 bed sheets (N$546 000) and 1 000 pillowcases (N$64 000) on 12 April 2016.
Out of the N$40 million, former August 26 finance manager Paulus Moshana, who is accused of military corruption, authorised at least N$21 million to international companies, documents show.
These payments are now said to be part of a forensic audit currently underway on August 26. Moshana is accused of defrauding August 26 Textile and Garment Factory with N$25,7 million through three companies linked to him.
Kapofi recently told The Namibian the auditor general has been mandated to look into August 26’s transactions dating as far back as a decade ago. The minister defended the company’s decision to procure goods from outside the country.
“As a country, we are not able to provide garments to manufacture uniforms yet. The government still has to buy elsewhere. We have now decided to buy the garments and get the manufacturing to take place in Namibia,” he said.
“Who doesn’t procure goods outside the country? Even the chicken we eat is from outside. As Namibians we think big, but we don’t look at our capabilities,” he said.
He said he is not aware that August 26 has been doing business with the companies from the countries mentioned in this article. “What I have come to know is that August 26 will do things on behalf of the ministry and the NDF.
“Where did you get those papers from? These things are confidential and you are publishing secret information about the state,” Kapofi said.
Dinapama managing director David Namalenga when approached for comment said it’s a pity that money is being shipped out of the country when locals can supply the said items.
“Nurses’ uniforms, police uniforms, even for home affairs and immigration, prisoners, customs, general government employees (overalls) . . . not just the NDF – we can supply all of them,” he said.
When the borders were closed because of Covid-19, Namalenga said Dinapama had to adjust and accommodate desperate government entities. “Now that the borders are open again, some of those entities don’t know us any more,” he said.
FAMILY AFFAIR One of the main suspects in these military payments is Moshana. The Namibian has since last year reported that Moshana appears to be protected by the police top brass, despite being accused of stealing N$26 million from a government-owned company.
Some suspect he knows too much, which is why he has not been arrested. The police said in documents filed in the Windhoek High Court in 2019 that Moshana faked invoices for services provided to the company.
His wife, Ester Shimwandi, an accounts clerk who worked in her husband’s office, has also been implicated in the case. The couple has been charged with theft and fraud, but has not been arrested.
Prosecutor general Martha Imalwa in court documents said the couple spent part of the money on houses in Windhoek, at Walvis Bay, and Omuthiya. They also bought seven cars and a tractor during the period of the alleged corruption, she said.
Imalwa said an amount of N$13,7 million was transferred from August 26 to entities controlled by or with links to Moshana’s family. Moshana could not be reached for comment on the mobile number that purportedly belongs to him.
A person who identified himself as his brother Petrus, hinted at a possible cover-up. “It’s unfair to only follow him, because he was at a lower level and that was done by the management,” he said. He added that the media is being used. Kapofi last month said Moshana’s family has worked with the police.
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