Search
Friday 19 April 2019
  • :
  • :

NWR lease fuel stations for N$ 2516.00

A joint venture in which Namibia Wildlife Resorts(NWR) is leasing out its fuel stations to a local company for N$2516.00 monthly has raised eyebrows. Company insiders have accused management of entering into agreements that disadvantages the company by leasing out company properties at cheap rates.
The Patriot had access to a plethora of sensitive and confidential contracts between private firms and NWR, including those that deals with the fuel stations.
DPF Energy and Minerals was given the tender to manage the NWR fuel stations during the implementation of the Turnaround Strategy in 2006. A lease agreement was subsequently signed in 2008.
Less than two years later NWR terminated the agreement after the company failed to adhere to the terms to the terms of the agreement. The main challenge, according to NWR sources, was the timeous supply of fuel products. Information obtained by this publication indicate that the same company entered into a similar agreement with NWR last year.
This time around the company’s name was changed to Enercon Namibia. It is owned by two brothers, Peter and Malakia Elindi.
The agreement mandates Enercon to supply fuel and petroleum products, manage petroleum product stocks, construct new fuel storage infrastructure, accommodation facilities for Enercon staff members and to install an Easy-Fuel management system on the NWR fuel service stations.
Enercon currently manages the fuel stations at Okaukuejo, Halali, Namutoni and Sesriem for N$6290 each. For the fuel stations at Waterberg, Ai Ais and Terrace Bay, Enercon is charged a monthly rental fee of N$2516.
When questioned about the deal, NWR MD Zelna Hengari said confirmed the agreement between NWR and Enercon while also explaining the cost charged for rentals.
Regarding the perceived low rental prices NWR is charging its partner, Hengari said: “The prices you refer to are merely the rental costs and exclude the 10% on the profit as provided for in our agreements. We have moved away from arms-length PPPs to a JV model in which we are a majority shareholder to better secure our interest and benefit. This is reflected in our new JV agreements such as for the Glamping product or Mile 14 campsite.”
“Being a new entrant to the oil industry, they experienced a few challenges. Enercon is the restructured DPF Energy & Minerals. We indeed did cancel our agreement with them, and they engaged us indicating that they are in the process of restructuring – a process that will enable them to perform in accordance to our standards. We suspended the agreement, and upon their successful restructuring they assumed their responsibility and are now running the fuel stations,” she admitted.
Following the signing of the new agreement in October 2017, NWR employees at NWR’s Ai Ais facility said the facility had to endure at least three months without diesel earlier this year. “They were struggling to cope especially with the diesel. We do not know what the arrangement is but we must be cautious as NWR to hold suppliers accountable. If tourists come to our facilities and they cannot be provided with fuel products, the blame will be pointed to NWR because it is our facility, hence our brand might suffer in that regard,” said the source.
To this, Hengari said “other than some initial teething problems which they resolved when they resumed operations we are satisfied with their service. We are happy to inform you that /Ai-/Ais has been providing fuel for our clients during our current high season,” she said.
Hengari also shed light on an incident a few weeks back at NWR’s Ai-Ais resort where over N$230 000 was stolen from the safe at the facility.
“The case at /Ai-/Ais was not a robbery, it was an inside job and the necessary investigation and disciplinary processes are on-going. We therefore cannot elaborate further.
The facility is guarded by Namibia Protection Services, a subsidiary of Swapo’s commercial arm, Kalahari Holdings.
“The security at NWR is very tight and it is handled by our long standing partner – Namibia Protection Services.
We have a staff compliment of close to 1000 members at 24 camps/resorts spread across the country. So incidences of such a nature will occur from time to time. However our Board and Management have adopted a zero tolerance approach to such incidences as part of our strategy of organisational culture transformation,” she said.




Leave a Reply

Your email address will not be published. Required fields are marked *