NDN Staffer
WINDHOEK, April 25 — A “smart city” deal between the City of Windhoek and Huawei Communications has been hit by allegations of serious fraud, attempted fraud, and corruption involving millions of dollars at the highest levels. A leaked document marked “Extremely Confidential” and dated 27 January 2021 has exposed a concerted effort by multiple parties to defraud not only the residents of Windhoek but also the City of Windhoek itself. The report has raised concerns about possible high-level fraud and corruption.
The saga began in 2020 when Paratus Telecom protested against the Communications Regulatory Authority of Namibia’s (CRAN) decision to issue the City of Windhoek with a Comprehensive Telecommunications Service Licence. Paratus argued that the processes were never followed, which was not followed by the industry regulator.
In June 2020, Brunhilde Cornelius, a former Windhoek City Councillor, stated in a sworn affidavit that she was offered a bribe by a local politician to ensure that Huawei would win an exclusive contract to build the 5G telecommunication network in Windhoek. Cornelius claimed that she was offered between N$5 and N$6 million from a slush fund of N$40 million to drop her objections and allow the city council to approve the signing of the Memorandum of Understanding (MoU).
According to the leaked document, the City of Windhoek’s Chief Executive Officer requested that the Internal Audit Division conduct an independent investigation into the allegations of bribery against the Strategic Executive: Information and Communication Technology after a Management Committee meeting held on 21 July 2020. The CEO also requested that Huawei’s 5G MoU be suspended indefinitely.
The leaked internal audit document addressed to the Acting CEO of CoW found that the planning of the Fibre Optic Network Project was highly challenged, with non-compliance to the Public Procurement Act of 2015, the Public Private Partnership Act of 2017, council-approved guidelines and resolutions, as well as incorrect and misleading reporting to the Management Committee and Council. The shareholding in the project was defined, but the crucial equity was not valued and defined.
The City of Windhoek would not financially benefit from the project without equity contribution to a Special Purpose Vehicle created to separate business operations from the council. The separation would ensure that the entity is managed on the best business principles in conjunction with the private sector and other stakeholders and to ringfence risks.
The leaked document further states that the attempted procurement of goods and services from Huawei Communications via an MoU was in contravention of the Public Procurement Act and that the ICT executive’s submission of such a document to the council was wrong and irregular. The honesty and integrity of the ICT executive were highly compromised, which could have been counterproductive to the successful implementation of the project.
The leaked document recommended that disciplinary action be taken against the ICT executive and five other executives, that the overpayment of N$50 743 made to the law firm be recovered, and that future invoices be approved by the corporate legal division to ensure proper checks and balances. The allegations of fraud, attempted fraud, and corruption have raised serious concerns about the “smart city” deal between the City of Windhoek and Huawei Communications.
– Namibia Daily News
