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Annual Accounting Update for 2003

The Institute of Chartered Accountants in Namibia (ICAN), in conjunction with the Commercial Bank of Namibia, will host an annual accounting update seminar on 2 and 3 October 2003 in Swakopmund and Windhoek. The programme will incorporate changes in the South African Statements of Generally Accepted Accounting Practice (GAAP) that have occurred since July 2002 and is dependant on statements that will be issued by the IASB and the South African Institute of Chartered Accountants by September 2003.

The seminar will be presented by James Luke, a chartered accountant at Ernst & Young South Africa. He is acknowledged as an accounting expert, particularly relating to financial reporting.

The main aim of the seminar is to consider changes in the current accounting environment in southern Africa and internationally, review new accounting statements that have become effective and consider the latest exposure drafts.

"We are proud to be involved in this annual accounting update together with the Institute of Chartered Accountants as we realize its importance in the continued professional education of all accountants, and the impact this has on the quality of the presentation of financial information," said Fanie du Plessis, managing director of the Commercial Bank of Namibia.

The seminar should be of value to auditors and users of financial statements, including financial directors, financial managers, bankers, stockbrokers,

Commercial bank’s profit up by 47,2%

Commercial Bank of Namibia recorded excellent results for the first six months of 2003 with net income after taxation increasing by 47,2 % to N$ 43,8 million compared to the corresponding period of the previous financial year. The bank announced this on Wednesday.

The good results were due to increased income from the micro-lending book as well as the ongoing success of the bank’s Go Green product range. Non-interest income decreased by 1,2% to N$ 32.7 million due to lower exchange earnings because of the relative strength of the Namibian dollar.

Provisioning remained conservative and the increase of 188,8 % to N$ 4.5 million in the charge-to-the-income statement was because of the additional general provision. This is set aside for the micro loan book in terms of the acquisition agreement. Expenses increased by 31,9% to N$ 57.1 million, because of increased administration costs following the micro-loan acquisition. Despite the increased costs, the cost-to-income ratio decreased to 48,6%. The capital adequacy ratio remained comfortable at 16.3%.

Ohlthaver & List create

N$1.6 billion of wealth

The O & L Group has paid N$ 1,2 billion to their suppliers for materials and services during their last financial year and paid over N$ 332 million to the government in rates and taxes. Speaking at the opening of a three-day seminar of the Epia Joint Venture for its shareholders, most of them from rural communities, the MD of of Ohlthaver, Mr Sven Thieme said this week that his group also paid N$ 290 million towards salaries. Wages and other employment costs. Those contributions Thieme said, had effectively positioned the O & L group as a consistent partner of the Namibian government since independence. Epia Investment Holdings was created a year ago with black empowerment shareholding of 49 % and O & L the remainder.

Windhoek City reveals list of unpaid bills

In an unusual move, the Windhoek City Council published a list of those entire private and corporate defaulters who did not pay their municipal bills for a while and whose debts are to be written off. The list appeared in the monthly agenda for the end-of the month public City Council meeting this week Wednesday. The debt to be written off comes to N$ 2,5 million dollars. The debts of government institutions still outstanding and which must be paid come to N$ 196.3 million.

Good news for solar power

The use of solar power in Namibia will not fall under a new levy stipulated in the new Petroleum Products and Energy Amendment Bill, tabled by the minister of mines and energy in the National Assembly. Although the original Bill provided for a National Energy Council and a National Energy Fund (NEF), they have been rather idle up to now. The NEF would be financed by dedicated levies not only from petroleum products but all viable energy sources like electricity, gas and wind power. The minister did however not disclose why wind power should be levied. Despite plans going back at least five years, the proposed wind park near Lüderitz has not yet materialised.

N$ 38 million for rural water supply

The deputy ,minister of agriculture, Paul Smit launched a trhee-year porject that will provide water, repair and expand pipelines and boreholes and train communities in water management. The areas targeted for this much-needed development are those in Omaheke and the Otjozondjupa regions. The funds were made available by the agency Lux Development of the Luxembourg government. The Namibian government will provide 25 % of the N$ 38 million.