Nghixulifwa ‘demanded N$150 000 fixing fee’

Former Murray and Roberts managing director Jan Louw testified last week that a ‘fixing fee’ of N$150 000 was demanded by former Roads Contractor Company (RCC) CEO Kelly Nghixulifwa on behalf of his coaccused Hafeni Nghinamwaami.

Nghixulifwa allegedly told Louw that Nghinamwaami wanted payment in the amount of N$171 000. But Nghixulifwa assured Louw that he would persuade Nghinamwaami to bring his fee down to N$150 000.

Louw said he and Nghixulifwa had a meeting where he indicated that Nghinamwaami wanted to be paid for bringing RCC and Murray and Roberts together for the construction of the RCC

head office between 2004 and 2006 – something he said did not sit well with him.

“I told him that there was no way Murray and Roberts would pay such an amount as it was almost half of our mark-up on the project. Our mark-up was N$350 000 and it would be unfair for us to carry such a cost and there were never talks about accused three (Nghinamwaami) being a facilitator,” explained Louw. Nghixulifwa allegedly assured Louw that RCC would give Murray and Roberts an advance payment of N$500 000 if they would carry the cost of N$150 000.

After the advance payment, Murray and Roberts paid the facilitation fee to Cradle Investments.

Louw took the stand as the second State witness in the ongoing trial of Nghixulifwa, Nghinamwaami and Anna Ndoroma in the Windhoek High Court last week before Judge Christie Liebenberg. Louw testified that he was approached by Nghinamwaami in 2004 if Murray and Roberts would be interested in constructing the RCC head office.

“After I told him that we were interested, he informed me that he would organise a meeting with RCC senior management,” said Louw.

The meeting took place at a local hotel where Louw was allegedly informed that Murray and Roberts got the tender and they had to make an official recommendation on pricing and other construction details.

On 8 December 2004, Louw received a letter of intent from Nghixulifwa at the same meeting where they discussed about Nghinamwaami’s facilitation fee.

Louw testified that Murray and Roberts received the first contract from RCC which allegedly had the N$150 000 to be paid to Nghinamwaami – a contract he did not sign.

On 23 February 2005, Louw received the second contract which did not indicate Nghinamwaami’s facilitation fee. Murray and Roberts signed this specific contract, the court heard.

Nghixulifwa and his co-accused are on trial for alleged fraudulent involvement in the B1 City property development project in Windhoek and the construction of the RCC head office between 2004 and 2006.

The prosecution is alleging Nghixulifwa was a shareholder in Cradle Investments, of which Nghinamwaami was a director, and Ndoroma held Nghixulifwa’s stake in the company as a nominee shareholder.

Nghixulifwa and his co-accused allegedly defrauded RCC and Murray & Roberts in December 2004 by concealing Nghixulifwa’s shareholding in Cradle Investments and inducing RCC and Murray & Roberts to pay a ‘facilitation fee’ of N$150 000 to the company and Nghinamwaami for the role they had supposedly played in the construction of a new head office for the RCC in Windhoek.

Prosecution claimed Nghinamwaami and or Cradle Investments were not entitled to a facilitator’s fee as they were never appointed as project facilitators.

The three accused are further charged for getting RCC to make a payment of N$29 954 to an auditing firm for work that the firm did for Cradle Investments.

Nghixulifwa is accused of having corruptly used his position as CEO of the RCC and committing fraud by using N$4.87 million belonging to the parastatal to buy a plot of land in Katutura on behalf of /Ae //Gams Engineering in October 2005.

The prosecution is further alleging Nghixulifwa and Nghinamwaami were shareholders of the company /Ae //Gams Engineering. /Ae //Gams Engineering was involved in the B1 City property development project in Windhoek.

The State is alleging Nghixulifwa hid his shareholding in /Ae //Gams Engineering by making use of Ndoroma as a nominee shareholder.

Thus, Nghixulifwa faces multiple charges of fraud, corruptly using an office or position, failing to disclose that he had an interest in companies with which the RCC did business with, and dealing with gratification derived from corruption.

Nghinamwaami and Ndoroma are charged with counts of fraud and dealing with gratification derived from corruption respectively.

All accused took a no guilty plea to the charges when their trial began earlier this month. Nghixulifwa and his coaccused are currently out on bail as the trial continues. -mamakali@nep.com.na