Minister Sankwasa Voices Concerns Over Nored’s Management and Governance

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Rundu:Urban and Rural Development Minister, James Sankwasa, has raised concerns regarding the governance and management of the Northern Regional Electricity Distribution (Nored). He emphasized that the challenges within its board and executive management need immediate attention.

According to NAMPA, Sankwasa addressed a high-level stakeholder meeting concerning Nored and the Local Authorities and Regional Council Electricity Company (LAEC). He warned that if Nored's performance does not improve, shareholders might consider establishing their own electricity distribution company. The minister questioned whether Nored is effectively serving the interests of local authorities, who are among its shareholders.

The Auditor General (AG) has repeatedly highlighted issues with Nored's management and the shareholding arrangements involving local authorities. These reports have pointed out recurring shortcomings related to the recognition and classification of investments, as well as supporting documentation and the recording of local authorities' and regional councils' investment interests in Nored.

Sankwasa mentioned that a meeting in Rundu would focus on shareholding arrangements and financial reporting, examining the legal and historical basis of the current shareholding structure, including ownership percentages allocated to regional councils and local authorities.

Additionally, Sankwasa criticized local media for what he described as inadequate investigations prior to publication, accusing some journalists of rumor-mongering and gossip. He called for a more investigative approach to journalism and questioned the qualifications of some journalists. His comments followed a newspaper report alleging that he had acquired plots at discounted prices in Bukalo, Zambezi Region. Sankwasa clarified that he applied for the plots in a personal capacity, received approval from the council, and paid in full, asserting that he does not owe any money to the village council.