The Namibian operations of Samherji made a net loss of ISK 950 million (USD 7 million, EUR 5.9 million) between 2012 and 2018, investigations into the companies’ accounts have found, with the Icelandic fisheries group saying that these demonstrate it did not exit the country with large profits.
At the end of July, Samherji’s board of directors confirmed receipt of an investigative report produced by Norwegian law firm Wikborg Rein, which explored allegations of bribery and other illegal practices made against its Namibian operations last year. The company said that it would to explain some of these accusations.
According to the finalized consolidated financial statements, firms affiliated with Samherji in Namibia achieved revenues of ISK 41.1 billion (USD 303.5 million, EUR 256.6 million) for 2012-2018, while their operating expenses amounted to ISK 38.9 billion (USD 287.3 million, EUR 242.8 million). Adding depreciation, finance costs, income taxes, and other expenses, the net loss for the period, amounted to ISK 950 million.
A breakdown of all the operating expenses showed that 55 percent, or ISK 21.4 billion (USD 158.1 million, EUR 133.6 million), at the current exchange rate was paid to Namibian parties.
“Samherji believes that this shows that one of the most serious allegations made against the company, about exploitation in Namibia, is not rooted in facts,” a group statement said.
It clarified that most significant part of operating expenses during the period were salaries, payments to Namibian partners, and quota fees to the Namibian government.
Payments to joint ventures owned by Namibians, the Namibian government, and other quota-holders were 29.3 percent of total revenues, and these payments amounted to a total of ISK 12 billion (USD 88.6 million, EUR 74.9 million). Quota fees and salaries during the period were 51 percent of domestic operating expenses.
Meanwhile, the most substantial part of operating costs outside Namibia was due to salaries paid to crew members, fuel, and charter and maintenance fees for vessels.
"The results show that the allegations that Samherji walked away from Namibia with large profits are grossly misleading. Serious accusations about exploitation in Namibia deeply affected our management. However, the financials show that payments to Namibian parties during the period amounted to over ISK 21 billion at today's exchange rate. We sincerely hope that the disclosure of this information will lead to factually accurate and fair reporting about the operations," Samherji Co-CEO Björgólfur Jóhannsson said.
The statement also revealed that in the past, companies within the Samherji group have had to lend working capital to subsidiaries in Namibia, and a substantial portion of the loans have not been repaid.
All operations in Namibia were discontinued at the end of 2019, and the subsidiaries are under closure. The companies have not been liquidated, but it is anticipated that a significant part of the loans will not be recovered, it said.
Samherji said it will publish further information on its business activities in Namibia in the coming weeks.
Photo courtesy of Samherji
