….through barter agreements
• NWR, Air Namibia deal worth N$1 million
• NWR, NEPC deal worth N$360 000
• Free air tickets
• Free advertising
• Free hospitality
Public enterprises in the country have in recent years turned to signing bartering agreements in a bid to save costs and build partnerships.
Three public enterprises earlier this year penned trade and marketing deals that would see employees making use of facilities at cheap rates, and in some cases for free.
In February, Namibia Wildlife Resorts (NWR) and Air Namibia signed a joint marketing trade agreement that will be valid for one year. In the same month, NWR also entered into a similar with New Era Publication Corporation [NEPC].
The deals have come under scrutiny in recent weeks with junior employees at the parastatals claiming that benefits accrued from the agreements only benefit officials who form part of the management.
SOEs have a critical role to play in rolling out public infrastructure, reducing the cost of business, creating employment, industrialising the country and developing skills.
SOEs continue to milk the state coffers non-stop annually pleading for bailouts. The total budget for public enterprises during the the Medium Term Expenditure Framework stands at N$20.8 billion. The figure is broken down as follows: N$6.5 billion for the 2016/17 financial year, N$7 billion for 2017/18 and N$7.3 billion for 2018/19 financial year. The agreement was signed off by the incumbent company heads.
The NWR/Air Namibia deal
In the agreement, NWR committed to provide, accommodation, conference facilities, advertising space on its website and space to have Air Namibia banners at all its facilities as well as 35% discount on accommodation bookings by Air Namibia staff members in their private and personal capacities.
In return, the national airline committed to provide NWR with air tickets, advertising on its website and a double page spread in the Flamingo inflight magazine for articles on NWR resorts and facilities.
“NWR undertakes to provide access to the use of its facilities including accommodation to Air Namibia to the value of N$500 000 in addition to advertising space on its website,” NWR promised in the agreement.
According to the agreement, to which The Patriot is privy, the air tickets provided to NWR will be worth N$500 000 on Air Namibia operated routes until the agreement expires next year.
“Air Namibia will play NWR promotional video’s on Air Namibia’s inflight entertainment on the Airbus fleet,” states the agreement.
The airline, will however not cater for airport departure taxes.
The two parties agreed that air travel not used by NWR during the duration of the agreement as well as advertising and marketing opportunities and hospitality not used by during the period shall be forfeited.
“This barter agreement shall be terminated by mutual consent of either party, and such termination shall be communicated to both parties thirty days before date of termination,” the enterprises agreed.
The two further agreed that: “The party initiating early termination of this agreement shall allow its counterpart, to use their entitlement up to the point where both parties’ utilization of their entitlement are equal, if the terminating party has used more at the time of giving notice.”