Saara, Pendukeni duck N$2.3bn questions

Saara, Pendukeni duck N$2.3bn questionsFormer minister and AG tight-lipped on Air Namibia lease deal The former finance minister, now the country’s prime minister, and former attorney-general have refused to answer why they bonded government to a costly lease agreement for which N$2.4 billion is now owed to an American firm. OGONE TLHAGE



WINDHOEK

Former attorney general (AG) Pendukeni Ivula-Ithana and former finance minister Saara Kuugongelwa-Amadhila are unwilling to go on record why they allowed Air Namibia to sign a devastating aircraft lease contract with no exit clause that will cost government billions after Air Namibia’s closure.

Kuugongelwa-Amadhila refuses to say why she bonded government to the guarantee of the pricey lease, with no exit option, locking the state into an arrangement that saw lessor Castlelake earn a handsome N$32 million monthly from Air Namibia for the lease of two Airbus A330 aircraft the airline took delivery of in 2012.

Air Namibia was not able to consistently pay this monthly sum, and now government owes Castlelake a whopping N$2.3 billion after the national airline was officially liquidated last week.

Public enterprises minister Leon Jooste, who visited America to try and negotiate an exit three years ago, confirmed last weekend that government is working on the terms of payment with Castlelake.

Ivula-Ithana, as attorney general, acted as the main advisor to government on legal matters at that time.

When approached for comment, Ivula-Ithana made it clear she would not answer questions about the deal.

“You can’t abuse me like that, that one I refuse to answer,” she said.

Kuugongelwa-Amadhila referred Namibian Sun to the ministry of public enterprises, which had not yet been established at the time of signing the lease agreement, for comment. She also advised that the ministry of finance should be approached after she declined to answer questions about her role in vetting the contracts.

“Please direct your query to the minister of public enterprises or that of finance,” Kuugongelwa-Amadhila said.

Attempts to cancel lease

Agonised by the huge payments, public enterprises minister Leon Jooste in 2019 jetted to the USA to engage executives of the leasing companies with a view of exiting the agreement, something that the Americans seemingly rejected because there was no exit clause in the agreement.