China leader's son associated in Namibia deal
Updated
A Chinese company, previously run by the son of Chinese President Hu Jintao, is at the heart of a corruption scandal in the African nation of Namibia. The company's called Nuctech
But, according to the director of Namibia's Anti-Corruption Commission which is investigating the affair, the $13 million dollars was passed on to three men allegedly to distribute amongst officials who helped land the deal. Those men have just been released on bail, and the anti-corruption commission has reportedly requested an interview with Hu Haifeng to give information about the scandal - although they're not yet accusing him of involvement. Hu Haifeng was chairman of Nuctech until 2008, when he became manager of the parent company which controls Nuctech and over 20 other companies.
Presenter: Liam Cochrane
Speaker: Tangeni Amupadhi, editor of Insight Namibia
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AMUPADHI: The anti-corruption commission is saying that Nuctech had enlisted some Namibians to influence the decision to award the contract. More than that is that the Namibian government believes Nuctech must have overcharged them to be able to pay, I think it is 30-40 per cent kickback, to a this group of Namibians - with two Namibians and a Chinese. And the Chinese national is one of those people who had been negotiating with the government on behalf of Nuctech and it turned out he is also employed, or part of the company of Namibians which received the kickbacks from Nuctech.
COCHRANE: Now have there been any arrests or any formal proceedings in this case?
AMUPADHI: Yes, we have had three people arrested - two Naminians and a Chinese national who is also a representative of Nuctech.
COCHRANE: And is there any official Chinese government involvement in the company?
AMUPADHI: Well from what we learnt this is a Chinese government company. And it used to be headed by the son of President Hu Jintao, and actually it still falls under a group of companies that he presides over, that is Hu Jintao's son.
COCHRANE: And that makes this case extremely sensitive. Specifically what allegations have their been, if any, of his involvement?
AMUPADHI: Well there's been really no allegation of his direct involvement, except that he presides over it, or it appears he started the company, at least he was the chief executive at some point.
COCHRANE: And to you knowledge has this story been reported within China?
AMUPADHI: From what we can pick up, the Chinese have blocked any access in China, or any mention of Namibia in China. You couldn't get through on the internet if you were to search for Namibia, after this Nuctech story broke here in Namibia.
COCHRANE: And how important is China as an investor and a trading partner with Namibia?
AMUPADHI: Oh I think becasue of it's Communistic outlook, China and our ruling party are sister organisations. Chinese Communist Party have provided funding for SWAPO [South West Africa People's Organisation], that is Namibia's ruling party, and the Chinese have increasingly been supplying Namibia with a lot of products - raw material, as well we have had quite a substantial number of Chinese coming to Namibia to do small business and major building contracts. So China plays quite a big role in Namibia and they've also given the Namibian government what they call a lot of soft loans. These are now increasingly coming under scrutiny because with these loans the Chinese demand the Namibians buy from China, or deal specifically with companies that the Chinese government has decided Namibia should buy from.
COCHRANE: What are the next steps for this case involving Nuctech?
AMUPADHI: We are not sure how far this case will go. What is clear is that it is in the Namibian courts now. The people who were arrested just received bail, I think, yesterday, so the case is now in the court system.
