By: Nghiinomenwa Erastus

THE private sector and public members have recommended to the prime ministers that they will prefer an independent advisory body to one minister handling the empowerment issues.

The reason being the route of having one individual suggesting all amendments to a certain policy has been flawed in the past.

The recommendation was one of the more than 16 recommendations compiled by the Namibia Investment Promotion and Development Board (NIPDB).

The board is/was mandated by the prime minister’s office to seek inputs on the National Equitable Economic Empowerment Bill.

The Bill gives powers to the yet to be identified minister to publish standards of NEEEF, sector transformation charters, and regulations.

According to the description of the red flag, “it does not prescribe a consultative process and allows 60 days not more than 60 days to comment”.

Those consulted highlighted to the board in its report that the “experience has shown that this process of comments is flawed”.

As a result, they recommended in the report the law should consider appointing an advisory body that can review these standards, charters, and regulations.

Then advise the minister on it prior to publication.

Furthermore, is recommended the advisory body be diversified as possible comprising of

representatives of both government and business/private sector.

On the aspect of economic growth, attracting FDI, earning foreign currency and encouraging re-investment in the economy.

The stakeholders engaged indicated that empowerment should include recognition not

only in terms of race but also Namibian ownership of resources.

They recommended the bill to include all Namibian residents in the definition of empowerment beneficiaries then assigning scores 70% based on race, 20% based on gender and 10% based on citizenship.

The private sector engaged highlighted that in the report that the fines and penalties

provided for in the law especially those relating to prison sentences seem excessive when compared to other laws.

The bill proposes N$1 million or 50 years in jail (section 17 (3)) and N$500,000 or 25 years in jail (per section 20 (20)).

Those consulted on the bill have highlighted the governance matters in the country.

Substantiating that “recent incidents have revealed that there is potential for gaps in the

governance process of laws to be exploited by representatives of both the private and public sectors”.

The stakeholders explained that such exploitation can be costly to the country and to limit potential exploitation of gaps, the current bill should be revisited when it comes to certain areas.

Such as powers of the yet to be appointed minister (especially in terms of Section

13, 24 and 25) and the commissioner.

The report highlighted also that those engaged are concluding that subsection b, of section 14 (9) imply everyone doing business in Namibia irrespective of background, sector, and size ‘might’ end up needing to comply with the law.

The private sectors highlighted that such requirement would further impact not only on

 

the country’s competitiveness but also on entrepreneurship.

The report recommended that in order to improve the country ease of doing business and

reduce the further administrative burden for companies, alignment of the bill to the existing policies in compliance should be facilitated.

The requirement for compliance with the Affirmative Action Act is presumed as achieved and further administrative processes in that regard be removed for companies that comply with NEEEB.

The ballooning wage bill has also been highlighted by stakeholders consulted, that to manage the public service cost, instead of creating another structure perhaps existing channels can be used.

“Given that there is a current structure that administers and enforces the Affirmative Action Act, it might be appropriate to consider and pursue an option of merging the structures,” read the recommendation.

 

Moreover, the bill makes provisions for the minister to appoint accreditation officers or

delegate this responsibility to other bodies, ballooning the wage further.

In order to manage the public sector wage bill, it is recommended as

part of the law, this function should be assigned to qualified auditors and accountants who are members of regulated bodies.

Specifically, those that are allowed to sign financial statements and act as company secretaries in accordance with the Companies Act.

It has also been suggested that provision for review of the impact of the bill on the economy and its every 5 to 10 years.

Provision can then be made for any amendments in either direction to be made during this review. Email: gerastus16@gmail.com