After Lazarus Kandara, the "behind the scenes" chief executive officer of AVID Investments, which had investments of N$30 million seen vanish all over the world to enrich a small group of people, testified in court on Tuesday, the public thought, they heard it all. However, Acting Judge Raymond Heathcote dropped a bombshell on Wednesday while grilling an official of the Namibian Financial Supervising Authority (Namfisa). Firing his questions at Bonny Paulino, a manager of Namfisa, if the institution should not exercise more control on investment companies and funds flowing out of Namibia, Paulino admitted there were loopholes and Namfisa would submit amendments to regulations to the ministry of finance.

Heathcote probed Paulino if he did not become suspicious, when reading the licence application of AVID, asking Namfisa to be registered as an investment company. "I ask you, because among the application documents is a letter signed by the AVID board of directors, stating Mr Lazarus Kandara was appointed as CEO", Heathcote revealed, sending murmurs through the public gallery. "I know that during the inquiry about the Social Security Commission there were allegations against Kandara, but they were not confirmed, so I did not get suspicious", Paulino said.

Former AVID director Paulus Kapia, deputy transport minister and leader of the SWAPO Youth league, has always denied under oath that he knew who the CEO of AVID was. He further told the court that he hardly knew Kandara and never dealt with him at AVID. "Never in my life, never!" were his answers from Kapia 2 weeks ago, when he was in the witness stand, when asked about his knowledge about Kandara role at AVID. On Wednesday, Paulino of Namfisa also had to admit that the quarterly reports to be filled in by all registered investment and financial institutions, had shortcomings. Namangol Investments had put in such a record that it got N$ 29.5 million but did not state where it went and how it was managed. "But this is your job (to check)!" lawyer Dirk Conradie criticised Paulino.