POPULAR law firm LorentzAngula Inc. is facing a double-edged investigation following allegations of irregularities in the way the Namibia Financial Institutions Supervisory Authority (Namfisa) contracted the firm’s legal services.

Informanté can reveal that Namfisa’s board of directors held a meeting early last month and resolved that an independent team of experts would probe the merits of LorentzAngula becoming Namfisa’s legal representatives.
The team of experts will “enquire whether or not the procurement of legal services from LorentzAngula complied with Namfisa’s procurement policy and principles of good corporate governance,” reads a draft statement issued by the board to management.
Among the allegations is that LorentzAngula may have secured the contract to handle Namfisa’s legal matters because of the friendship between some senior managers at both institutions.
Sources say Namfisa’s CEO, Rainer Ritter is a friend of one of LorentzAngula’s directors, Hartmut Ruppel, and that their personal friendship may have influenced the deal to represent the financial supervisory body.
Ruppel “vehemently denied” that his friendship with Ritter played a central part in the decision to award his law firm a contract to act as Namfisa’s legal representatives.
“It wasn’t my decision. Lorenz & Angula applied for that opportunity as a corporate entity and not me as an individual. I vehemently deny such allegations,” Ruppel said.
“I just want to tell you that if you go ahead with your article, I will take my rights seriously. How do you define friendship? Are you a friend of President Pohamba, for example?” he asked.
Quizzed on how his firm secured the rights to represent Namfisa in its legal matters, LorentzAngula Managing Director, Hosea Angula said after the formation of the firm about three years ago, it presented its credentials to different companies, including Namfisa.
“I don’t know how they came to the conclusion to appoint our firm, that’s for them to answer,” Angula said.
On the alleged friendship between Ruppel and Ritter, Angula said, “Maybe they are friends, but I can tell you that we got the contract with Namfisa through a transparent process.”
It is expected that the final report on the investigation will be submitted to Namfisa’s board chairman Rick Kukuri in not more than one month after signing the necessary terms of reference.
Meanwhile, a high-level forensic audit into the awarding of information and technology consultancy jobs to Wayne Phillip, said to run into hundreds of thousands of dollars, has also raised eyebrows amongst members of the Namfisa Board.
As a result, the board has ordered the Ernst and Young firm to investigate the business relationship between Namfisa’s Manager of Short term Insurance and Medical Aids Scheme, Gysbert Kirsten, and Wayne Phillip, who reportedly earns more than N$100,000 per month from Namfisa.
In terms of the scope of the audit requested by the board, Ernst and Young must establish whether Namfisa handled the procurement of services from forensic expert Phillip, in compliance with Namfisa’s procurement policy and principles of good corporate governance.
The investigators will also establish whether or not the professional fee paid to Phillip is reasonable and market related.
It should also investigate whether or not a business relationship exists between Phillip and Kirsten and “if it exists, examine whether or not that places the latter in a position of conflict of interests,” the board states.
When approached for comment, Kirsten and Phillip denied the allegations.
“I wish that was the case that I was being awarded N$100,000,” Phillip said, adding that he could not comment on the allegations, as the matter is the subject of a forensic audit.
Kirsten described the allegations as ridiculous, but also refused to comment while the forensic audit continues. - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , This e-mail address is being protected from spam bots, you need JavaScript enabled to view it