Africa-Press – Namibia. NAMPOWER managing director Kahenge Haulofu has said the national power company lost N$2 billion since last year – just a year after announcing that it made N$1,1 billion in profit.
Kahenge announced the loss in an internal memo sent to staff members on 16 January this year, as part of his new year’s message.
“NamPower barely survived a very challenging year, which saw the company record a financial loss in excess of N$2 billion, at both group and company level,” he said.
Haulofu said the company’s strained financial performance is caused by several factors such as the increasing cost of electricity, accounting changes in financial instruments and limited electricity output from Ruacana Power Station due to low rainfall in the catchment area that supplies the station.
In 2021, at the release of the financial statements, former public enterprises minister Leon Jooste said the power utility’s performance was exemplary after reporting a profit of N$1,2 billion for the 2021 financial year.
None of this was real money though, but included in the profit was an unrealised gain relating to a power purchase agreement. That gain allowed a nett fair value gain of N$1,1 billion to be run through the profit and loss, masking the not-so-solid performance.
He said the company made “good efforts” to achieve positive change in employee-related costs.
“2022 signified the second year of our 2020-2025 strategic plan. We successfully managed to fulfil our mandate, that of ensuring a reliable and uninterrupted supply of power to the country,” the managing director said.
Despite the financial challenges, Haulofu said the power company met other targets in various projects which will contribute towards the country’s energy self-sufficiency and improvement of the electricity network.
NamPower spokesperson Tangeni Kambangula last week said the financial year referred to covers the period from 1 July 2021 to 30 June 2022.
“Once the results are released, the public will observe that the company made an operational loss in excess of N$2 billion. As a result of the loss, the company’s earnings before interest, tax, depreciation and amortisation was negative,” she said.
Kambangula said NamPower was not in a position to pay employees a performance bonus due to negative financial performance.
“However, all employees received their guaranteed 13th cheque.”
She said the ability to avoid load-shedding within a region experiencing significant power shortages than ever before, came at a cost which is evident in the financial results presented to be published soon.
“NamPower’s role as a supplier of last resort will continue to stretch the company’s financial resources to avoid load-shedding.”
NamPower’s union representative Epson Nakale wrote a response to Haulofu’s message this week, questioning the N$2 billion loss.
“Is the N$2 billion loss made from the 30 November 2022 to 17 January 2023 or which financial year was it, but it’s only being mentioned now in the MD’s communique?” he asked.
He said the unions demanded answers from NamPower on several issues at the end of last year. The unions met the management on 30 November 2022.
“In that meeting, the financial presentation was made, and nowhere in that was there a mention of N$2 billion loss,” he said.
He said another brief financial presentation was made at the year end staff function on 2 December 2022, and there was no mention of the N$2 billion loss.
Nakale said Haulofu told workers who attended that meeting that the NamPower directors would meet on 12 December 2022 to discuss issues such as bonuses.
“NamPower has accumulated over N$1,6 billion in debt, because of defaulting customers, today we are told we are N$2 billion in arrears. Why does NamPower continue to supply electricity to defaulting customers, but the selfless and dedicated employees going overboard executing their duties are not being rewarded accordingly?” said Nakale.
“Our benefits are taken away yearly, but the NamPower board of directors and the line ministry are not cutting the power of defaulting customers”
He said the managing director should pass on a message to the parastatals directors and energy ministry.
“This country’s security of power supply is hanging on our shoulders and the more they are taking from us, the more we become feeble.
“One day, just one day, this beautiful Motherland may be in the dark.”
For More News And Analysis About Namibia Follow Africa-Press
