The Namibia Institute of Pathology (NIP) has bought new cars worth N$5,3 million for its top five executives amid claims that the parastatal is struggling to obtain essential materials required for conducting laboratory testing.
NIP chief executive Kapena Tjombonde confirmed the purchase on Monday, describing it as an “extension of the fringe benefit”.
“As part of the remuneration package for its executive team, the NIP granted a fringe benefit in the form of a vehicle scheme for private and official use. This fringe benefit is subjected to the Namibian Income Tax Act, at the applicable tax rates,” she said.
The executives who are enjoying the benefits are Tjombonde, Oaitse van Staden (chief human capital officer), Nabot Uushona (chief technical officer), Vincent Nowaseb (chief operations officer), and Scholastika Mwetulundila (chief financial officer).
Tjombonde said a board resolution was passed in August, and it is now being implemented as part of executives’ contracts of employment.
“Every expenditure at the NIP is duly authorised and expended in line with the approved budget,” she said.
According to her, the new vehicle scheme would see the executives being given the option to buy their cars after five years.
“Under the approved scheme, the vehicles remain assets in the books of the NIP, and those eligible have the right of use – official and private.
“After a five-year period, there is a provision for right of first refusal to purchase the vehicle,” Tjombonde said.
She added: “This is an extension of the fringe benefit. The NIP remains committed to ensuring that confidentiality of employment contracts is maintained for all its staff members.”
Documents in possession of The Namibian show that the NIP paid N$1,1 million for Tjombonde’s Mercedes Benz, Uushona received a Novel Ford which the parastatal paid N$1 million for, while Nowaseb received a Nissan worth N$987 034.
The NIP further purchased Van Staden a Toyota Fortuner worth N$1,1 million, and Mwetulundila an Amarok worth N$1 million.
Documents show that these payments were made on 17 November and 28 November this year, respectively.
The move to purchase new cars, according to insiders, was allegedly made without following the Public Procurement Act.
NIP board chairperson Bryan Eiseb on Monday, however, said the board has given the purchases its blessing.
“I can confirm that we have approved a vehicle scheme for executives. It is management that is required to consider the scheme and implement it,” he said.
Questions have been raised as to why executives who are already being paid salaries, including benefits such as car allowances, need their cars paid for by the parastatal.
Petrol costs and insurance will allegedly also be covered by the parastatal.
“I will advise that you speak to the company spokesperson. We are not allowed to speak on behalf of the company on these matters,” Van Staden this week told The Namibian.
The NIP’s chief technical officer, Nabot Uushona, said he could not discuss company matters.
“I have no authority to speak on NIP matters, and what you are asking I cannot comment on,” he said.
Nowaseb and Mwetulundila did not answer The Namibian’s calls.
Benefits for executive officials at parastatals are decided on by the Ministry of Finance and Public Enterprises.
President Hage Geingob imposed a moratorium on unnecessary travelling and the buying of cars in 2020.
The Namibian last month reported that the government bought both Swapo presidential candidate Netumbo Nandi-Ndaitwah and prime minister Saara Kuugongelwa-Amadhila vehicles worth N$4 million.
The NIP was established with the objective of providing medical laboratory services to all healthcare facilities in Namibia.
Former NIP chief executive Augustinus Katiti was booted out of the position in 2018 and subsequently given a N$3 million golden handshake, despite being accused of various irregularities.
His annual salary was N$1,5 million.
Political analyst and social commentator Rui Tyitende says the purchasing of new vehicles by the parastatal is unjustifiable.
“They say a fish rots from the head. So, this culture of entitlement and conspicuous consumption emanates from the highest echelons of political power.
“And it is always the fat cats who benefit from such outlandish schemes,” he says.
“What could possibly justify the purchasing of luxury cars for an institution that is not a commercial enterprise? As a country, have we lost the moral high ground and the capacity for shock?”
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