The 11 million buck questionQuestions have been asked how the Social Security Commission transferred close to N$11 million meant for social development to state coffers, with an apparent view to be used as training for 1 000 struggle kids.
Namibian Sun has in the past week sent out questions to the ministry of labour, Social Security Commission, as well as the Cabinet secretariat to explain the basis of the transfer of the money, but to no avail. Just after 17:00 yesterday, Secretary to Cabinet George Simataa released a statement.
This follows the leaking of documents on social media, which were trending the entire Tuesday afternoon.
The one document suggested that President Hage Geingob directly wrote to the minister of labour Erkki Nghimtina, requesting the release of the funds in a letter dated 5 September 2016.
In the letter Geingob wrote that “an amount of N$11 325 000 be released from the Development Fund of the Social Security Commission for use towards the plight of the Children of the Liberation Struggle.”
The requisition of payment was issued by the Social Security Commission on 7 September with reference, Office of the President. On the same day, a new account was opened at the SME Bank in the name OPM – Children of the Liberation Struggle. SME Bank addressed the letter of account confirmation to Simataa, who is also the chairperson of the SME Bank Board.
The amount of the requisition for payment is N$11 325 000. The documents leaked on social media and have attracted scrutiny and criticism.
Simataa has defended the transaction saying in terms of Section 37 (4) (a) of the Social Security Act 34 of 1994, the Act gives power to the president to approve training or employment schemes.
The Act, however, does not authorise the president or the line minister to authorise the release of funds from the Social Security Development Fund. “In terms of this statutory provision, the president approved the donation of N$11 million for the training of
1 000 Children of the Liberation Struggle to undergo training at Berg Aukas and NIMT.
“The money is to cater for training, uniforms, catering services, training equipment, accommodation and allowances for six months,” Simataa stated. “Let it be clearly stated that due diligence and accountability is exercised towards the management of these funds. As a result, the SME Bank has been identified as the manager of these monies.
“Therefore, all statutory requirements will be satisfied as far as the management and accountability of these monies are concerned.”
A few months ago, government had announced the struggle kids would be sent for training to Berg Aukas and Du Plessis Farm.