Renthia Kaimbi
Details of a Government Institutions Pension Fund (GIPF) bailout intended to rescue the Ongopolo copper mine in Tsumeb in the early 2000s have resurfaced.
Residents and sources now allege that former executives acquired multi-million-dollar company properties for almost nothing during liquidation.
More than N$100 million in government support, including GIPF funding, had been injected into Ongopolo Mining and Processing Ltd under former managing director Andre Neethling in an attempt to revive the collapsed mine.
Court documents filed in 2005 showed that Ongopolo owed Standard Bank N$95 million, backed by a government guarantee.
The documents also showed that GIPF was owed about N$50.5 million, while the Minerals Development Fund was owed over N$58 million.
When the operations failed, the company went into liquidation.
Sources now claim that this process led to property transfers that left pensioners and taxpayers without recovery.
“The GIPF bailout was supposed to secure the mine’s future and protect investments. Instead, we’ve witnessed former executives acquire prime assets for pennies on the dollar while the institution never recovered its substantial investment. The very properties that could have compensated the fund were alienated to insiders,” a source said.
GIPF acknowledged its participation in the now-defunct Development Capital Portfolio (DCP).
The fund’s general manager for marketing and stakeholder engagement, Edwin Tjiramba, said the investment was made under the DCP programme, which began in 1995 to support Namibian businesses with growth potential.
“GIPF has since disinvested from the investment in question during 2010,” he said.
Tjiramba said some DCP investments performed poorly, including Ongopolo, but said the programme delivered positive cash flow overall.
“While some of the investments rendered negative results, overall, the DCP programme produced positive cash flow returns for the Fund, some of which continue to yield positive returns to date,” he said.
Neethling has emerged as a central figure in the controversy.
Allegations suggest he acquired a large portfolio of Ongopolo properties, including two-thirds of the old Tsumeb mining service area, the former TCL private hospital, the former managing director’s residence known as the “Wit Huis”, and various plots with exclusive prospecting licences (EPLs). Sources claim he paid less than N$1 million for assets worth far more.
When contacted by the Windhoek Observer, Neethling rejected the allegations.
“I think it’s nonsense. They were not an equity partner. I think you are now calling me on a Sunday, and you want information. I think, call me at a better time, please, and instead of asking me and trying to get a response from me, get your facts right, please,” he said before declining further comment.
Former Ongopolo property manager Christo Groenewaldt has also come under scrutiny.
He confirmed buying the Endombo workers’ hostel from Ongopolo for just over N$1 million but denied claims that it is now listed for sale for more than N$30 million.
Questions have also been raised about the acquisition of the Rubicon Security Services headquarters, which sources say shows no proof of payment during the liquidation.
Groenewaldt said he bought the property from Weatherly International, which took over Ongopolo and not from the mine itself.
“I did not buy it from a public entity; it’s also not me personally who bought it. The Rubicon business has been occupying this property even since before the time of Ongopolo. And it’s long after the time of Ongopolo that we bought it. We bought it from Weatherly,” he told the Windhoek Observer.
He declined to reveal the price but said Weatherly had never disputed payment.
Groenewaldt recalled that Ongopolo had borrowed money from GIPF.
“As far as I can remember, when Ongopolo started, they had borrowed money from the GIPF, amongst other places. I don’t know who else, but there was a loan from GIPF in the year 2000, but I don’t have the details of that. I was not on the board of directors,” he said.
Sources involved in the liquidation said at least six liquidators were appointed to dispose of Ongopolo’s assets.
They confirmed that a formal investigation was launched, though its outcome remains unclear.
Community members and sources have called for a commission of inquiry to address the property allocations and determine whether assets can be reclaimed.
“Imagine, no auction took place, no notice of a sales transaction, and people gave each other properties, especially properties and houses of previous mining interests, while these properties were at least supposed to be donated to the Tsumeb community through the Tsumeb municipality,” a source said.
Sources also claim that parts of the mine, which they say should be government heritage sites, have since been fenced off, blocking any tourism prospects at the old mining complex in Tsumeb.
