Category: Industry

Finance minister Ipumbu Shiimi says patriotic Namibians who benefited from the Namibia Students Financial Assistance Fund (NSFAF) should repay their loans as it is “the right thing to do”.

The minister paused during his 2021/22 mid-year budget review to discuss NSFAF loan repayments, currently a hot topic in Namibia.

Namibians are divided on repaying NSFAF loans. There is a group, including those leading NSFAF, that feel the loans must be repaid in order for the fund to become self-sustaining.

Another group exists that argues that due to lack of accountability at the fund, lost records and outright theft, they are not repaying the loans, while others maintain they are unemployed and therefore, are unable to pay back.

However, Shiimi is adamant that the money must be paid back.

“I implore all previous NSFAF beneficiaries, as upstanding citizens, to support and cooperate with the fund to repay outstanding debts and ensure financial sustainability going forward,” he pleaded.

According to him, refusing to pay back is an unpatriotic act.

“Refusing to pay back when earning a decent income – some are even driving expensive cars – is morally abhorrent, it is unpatriotic and can be equated to stealing the future of the youth of today,” he charged.

So far, NSFAF undertook a means-testing exercise on parental income to ensure that funding is dedicated to eligible needy students.

In addition, the fund has resolved to name and shame all defaulters in local newspapers.

Meanwhile, speaking to Nampa shortly after Shiimi’s speech, Rally for Democracy and Progress leader Mike Kavekotora agreed with the Treasury boss, saying NSFAF “must become a revolving fund.”

“I agree that NSFAF should have been a revolving fund. But I think the way they kept their books and records and spent the money is questionable,” said Kavekotora.

Having chaired the Parliamentary Standing Committee on Public Accounts in the past, Kavekotora is sceptical that NSFAF has the ability to go after every defaulter in the absence of a solid database.

“NSFAF has the ability to trace the people they are claiming to recover money from because that is the bone of contention,” he said.

He also noted that those who ran the fund into the ground through mismanagement, must be taken to task.

“There is a possibility of corruption at NSFAF. When records are not kept properly, that is a breeding ground for corruption.”

Source: The Namibian Press Agency

Minister of Finance Ipumbu Shiimi has said that the 2021 Medium-Term Expenditure Framework (MTEF) assumes no pensionable salary increases for public servants in the 2022-2023 financial year (FY).

This emerged in Shiimi’s mid-term budget review speech on Wednesday in which he stressed the government intends to tighten the noose on unnecessary expenditure while also keeping the public wage bill, which gobbles up over 50 per cent of public expenditure, under control.

“I would like to extend specific gratitude to the trade unions and indeed all civil servants for heeding our call and keeping their belts tightened. We still plead with them to maintain patience especially in the next fiscal year, which promises to be more difficult, so we allow the economy to recover more firmly,” Shiimi said as he walked the tightrope.

The government has also put a moratorium on mass personnel recruitment in the civil service while concurrently speeding up the work of the steering committee on wage bill reforms, aimed at reducing personnel expenditure over the MTEF.

In its resolve to curtail wastage, the government recently took a decision to close down Southern Times newspaper, Shiimi revealed.

The government had put aside over N.dollars 10 million for the financial needs of the now-defunct paper.

In addition, a team of consultants has been appointed by the Office of the Prime Minister to map out and finalise the wage bill reforms.

The 2021/22 mid-year budget review exercise focused on reallocating the realised resource envelope across critical expenditure items that could not be postponed to future FYs.

The reallocated amount constitutes of N.dollars 41.4 million and N.dollars 279.8 million realised from suspensions on the operational and development budgets.

Overall, a total of N.dollars 2.2 billion has been made available for reallocation against total funding requests of N.dollars 7.1 billion received from government offices, ministries and agencies.

The budget is anchored on three pillars, namely the steady improvement in consumer demand both domestically and globally “as economic activity normalises, improved momentum in exports driven by upbeat production levels and complemented by the projected gradual recovery in commodity prices”.

The other is to reinvigorate in investments, both by the private and public sectors.

“Anchored on assumption that the COVID-19 pandemic will remain contained, and the economy will gradually open up, growth is projected to accelerate further to 2.8 per cent by 2022.”

However, speedier implementation of the second Harambee Prosperity Plan will add further impetus to these prospects, Shiimi said.

“The key premise of our medium-term fiscal framework is that in the absence of strong economic growth, revenue will remain subdued. And without revenue growth, expenditure cannot be increased,” he said.

Source: The Namibian Press Agency

Troubled national rail entity TransNamib has resolved to issuing voluntary severance packages as the freight and logistics company struggles to make ends meet in the face of reduced cargo volumes and redundant positions.

The information is contained in a staff memo dated 03 November 2021, seen by Nampa.

The exercise is wholly voluntary, TransNamib boss Johny Smith assured the employees.

“This process will begin in earnest in November 2021 to take effect at the end of each month from November 2021 till end of March 2022 and will entail a voluntary early retirement exercise (strictly according to the TransNamib Retirement Fund Rules), as well as for qualifying employees in specific business units that have been deemed non-core to TransNamib as part of its Integrated Strategic Business Plan,” Smith says.

TransNamib finds itself between a rock and a hard place and is fighting for survival.

“The voluntary exits are necessitated by TransNamib Holdings Limited experiencing a substantial decline in cargo volumes, as well as some positions having become redundant as a result of certain services like roads operations having been discontinued.”

As a result, “it has become necessary to reduce the staff complement of the company to match its present business pattern and structure. After thorough consideration of the company’s position within the industry, the board of directors has resolved that in order for the company to maintain its survival, viability and competitiveness, the company has no other option but to conduct a rightsizing exercise.”

According to the memo, through the exercise, TransNamib endeavours to optimally, efficiently and effectively utilise the company’s human, financial, operational and supporting resources.

“As a result, the board of directors has considered it prudent to make this offer only to employees who are employed within the non-core and support functions of the business, as well as employees who are within five years of normal retirement,” Smith added.

The offer is generally open to all employees, except but not limited to shunters, assistant train drivers, train drivers, DE fitters, platelayers, trackmen, track welders and engineers.

The offer comprises of severance pay of one week’s remuneration for each year of continuous service with TransNamib, one month’s notice on retrenchment, and one week’s special notice payment as per the recognition agreement with the trade union representing the employees.

“It is imperative to note that the qualifying employees will not all receive the applicable offer at the same time, since the process will be staggered as best financially viable for the company from end of November 2021 until end of March 2022,” the chief executive officer said.

He goes on to say: “It must be further emphasised that this is a voluntary offer and that no qualifying employee will be forced to accept it, and it should be seen as an action in good faith by management to prevent the possibility of forced retrenchment.”

The applications commenced on Wednesday and will be open until 17 November 2021.

Source: The Namibian Press Agency

Public Accounts Committee member, Harold Kambrude, has said he is disheartened and concerned that the non-submission of documents as evidence by the Rundu Town Council, has resulted in N.dollars 134 million going unaccounted for.

Kambrude made the comment during the cross-examining of the Rundu Town Council management by the Public Accounts Committee here on Thursday, based on a report of the Auditor General for the 2016/17 financial year.

In his report Auditor General Junias Kandjeke stated that the financial statements of the town council do not fairly present the financial position of the council.

He said during the year 2016/17 year, amongst others, expenditure vouchers amounting to N.dollars 3.7 million and N.dollars 53 million were not submitted.

“There was non-submission of supporting documents for Value Added Tax provisions amounting to N.dollars 46 million,” he said.

Kandjeke said an unexplained difference on the bank reconciliation amounting to N.dollars 45 million, as well as non-submission of provision for leave pay policy amounting to N.dollars 7 million were some of the reasons why he gave the Rundu Town Council an adverse audit opinion.

“This is tragic. I so wish the former chief executive officers and former councillors could have been here to explain. You are in a tough position, having to explain on other people’s behalf,” Kambrude said to the three management members who attended the meeting.

He said he wished the committee were better mandated to call back former CEO’s and councillors, adding that they should be called to order as they do not properly discipline staff who do not perform.

Councils also do not also properly discipline CEOs when they do not perform, he noted.

Kambrude said it is disastrous that public money cannot be accounted for, adding that town councils should work hard to “better account for the people’s money.”

Responding to why the expenditure vouchers of N.dollars 53 million were not provided, Rundu Town Council accounting creditor Koleta Nsinano said the N.dollars 53 million included NamWater payments.

“These payments were not paid based on invoices, but paid towards just the debt,” she explained.

The other two management members that attended the meeting were strategic finance executive officer Sam Nekaro and finance manager Phillip Munango.

Source: The Namibian Press Agency

Minister of Finance, Ipumbu Shiimi, said a total of N.dollars 2.2 billion has been availed for reallocation across budget votes.

He said this when he delivered the 2021/22 Financial Year Mid-Year Budget Policy speech in Parliament on Wednesday.

“This is against total funding requests of N.dollars 7.1 billion received from offices, ministries and agencies during the review,” he said.

Shiimi proposed that the following amendments be approved; that the Development Budget ceiling be reduced on a net basis by N.dollars 279.8 million from N.dollars 5.5 billion to N.dollars 5.2 billion; and that the non-interest Operational Budget be increased by N.dollars 2.2 billion from N.dollars 53.9 billion to N.dollars 56.1 billion.

The minister proposed that statutory expenditure be reduced marginally from N.dollars 8.5 billion in the main budget to N.dollars 8.3 billion, while proposing the lifting of the global expenditure ceiling for the financial year 2021/22 from N.dollars 67.9 billion to N.dollars 69.7 billion.

He said the proposed reallocation is aimed at addressing underbudgeting on personnel expenditure utilities and other spending items across budget votes, and to meet resource shortfalls in the Ministry of Health and Social Services as a result of the third wave of COVID-19.

The top three ministries with the highest reallocation are the Ministry of Education, Arts and Culture, which is allocated N.dollars 400 million to cater for underbudgeting on personnel-related expenditure, the Ministry of Health and Social Services, which is also allocated N.dollars 400 million required to boost the COVID-19 response plan; and the Ministry of Works and Transport, which is allocated N.dollars 89 million, apportioned as N.dollars 47 million to cover property rentals, N.dollars 34 million for rates and taxes and N.dollars 5 million for personnel expenditure.

The ministries that received the lowest reallocation include the Ministry of Justice which was allocated N.dollars 5 million to cater for witness fees; the Ministry of Labour, Industrial Relations and Employment Creation, which was allocated N.dollars 1.3 million for personnel expenditure, and the Ministry of Environment and Tourism, which was allocated N.dollars 4 million for anti-poaching activities.

Source: The Namibian Press Agency

Farming can be a major contributor to Namibia’s economic development provided that all agricultural value chains are fully developed, Ministry of Agriculture, Water and Land Reform Executive Director Percy Misika has said.

Misika made the remarks in a statement read on his behalf during a workshop of the European Union-funded Livestock Support Project (LSP) aimed at improving livestock farming in the Northern Communal Areas (NCA) at Opuwo on Tuesday.

He said Namibia’s livestock value chain can be fully developed to produce finished products including dairy products; dried, chilled and canned meat products; hides, skins and finished leather products; and many other by-products.

Misika stated that the ministry is seeking to revive the local tannery industry, noting that there is a need for a complete paradigm shift in order to improve the NCA livestock industry, starting from producer level and through the entire value chain.

“Farming is a business and the Livestock Support Project seeks to support livestock farming as a business,” he said, adding that the project further aims to address climate change challenges in order to establish a certain degree of resilience for farmers.

The LSP also seeks to amplify fodder production efforts, establish feedlots and double the ministry’s knowledge creation in nutrition and rangeland management through training and awareness in the NCA.

Misika further noted that the project will only succeed with farmers’ support and full cooperation.

“I, therefore, implore our NCA livestock producers and all other key stakeholders such as the Namibia National Farmers Union (NNFU) and cooperatives to join hands with the ministry to mobilise farmers to utilise these resources we are intending to bring to their disposal. I will be counting upon your care to ensure sustainable utilisation thereof,” the executive director said.

Ngatuuane Farmers Union vice president Ben Kapi welcomed the project, stating that it will benefit NCA farmers. He however indicated that government institutions such as prisons, hospitals and schools should be the major consumers of their products in order for it to be a success.

“If we set up these feedlots and abattoirs, this should also mean that government should stop importing products from the other side of the red line,” Kapi said.

Source: The Namibian Press Agency

Minister of Finance Ipumhu Shiimi, has announced that government have generated a total of N.dollars 408.6 million from auctioning fish quota, inclusive of N.dollars 62 000 raised from application fees.

Shiimi made the announcement in the National Assembly on Tuesday, while providing updates on the outcome of the second rounds of auctions that took place a few months ago.

He said that a total of 15 948 metric tons of hake fish were auctioned on 18 June 2021, raising a total of N.dollars 189.8 million, while a total of 87 500 metric tons of horse mackerel fish that were also auctioned the same day, raised a total of N.dollars 128.6 million and 392 metric tons monk fish auctioned on 27 August 2021 raised a total of N.dollars 4.3 million.

“There was a residual balance of 27 300 metric tons of the horse mackerel unallocated due to poor demand at the auction held in June 2021. Subsequently, given the quantum of the metric tons available and with six months remaining on the horse mackerel fishing season, coupled with the limited demand from domestic players, the Ministry of Fisheries and Marine Resource engaged the Government of the Democratic Republic of Congo (DRC) that expressed desire to take up these remaining metric tons, said Shiimi.

He added that in this regard, the Government of DRC has successfully settled their financial obligations of N.dollars 85.7 million on 07 October 2021, and as normal auction rules the quota was sold at the average price of the auction for horse mackerel. Therefore, the approach increased the total metric tons for horse mackerel from 60 200 metric tons originally sold on auction to a full allocation of 87 200 metric tons at N.dollars 214 350.448 million.

“The proceeds from the auction will fund the government priorities, especially in the health sector, which needs additional funds to combat COVID-19. Given the outcome of the auctions, we are still convinced that the auctions remain the appropriate method of exploiting the quota allocated for Governmental objectives,” stated Shiimi.

Source: The Namibian Press Agency

The Rundu Town Council has temporarily suspended new water connections in all unsurveyed areas at the town until further notice.

Chief Executive Officer Olavi Nathanael said this in a statement issued here on Tuesday.

“This decision was merely taken to allow more time for the water maintenance staff members to work on certain areas, such as those with water leakages, and to boost water supply to various residential areas with low water pressure,” he said.

Some water pipes are clogged or leaking, disrupting water flow to certain residential areas.

The water maintenance department also has to attend to the suspension of water to default customers.

“They have to take stock of all new connected water meters that are registered in the council’s database,” he stated.

Nathanael further urged residents who have water meters that are not registered in their database, to provide their meter numbers and readings, along with a receipt in order for them to be registered.

He said failure to comply with this will be regarded as an illegal connection.

The Rundu Town Council which has been struggling to supply water to the town since last month as it currently owes NamWater N.dollars 124 million.

Residents owe the council close to N.dollars 300 million in overdue municipal bills, which has negatively affected the implementation of some of its developmental services or projects.

Council was placed on a prepaid credit system by the water utility after it was removed from the conventional water supply system after the town had accumulated debt of close to N.dollars 60 million in 2018.

“Of the 15 000 water accounts on the town’s database, only 5 000 are paid up accounts,” Nathanael said.

Source: The Namibian Press Agency

Namibia will assume important leadership positions in international institutions next year and will use the opportunity to support and increase female participation in leadership positions.

This was said by Deputy Prime Minister and Minister of International Relations and Cooperation, Netumbo Nandi-Ndaitwah while addressing the first anniversary of the International Women’s Peace Centre, here Monday.

She said the positions include the role of the Southern Africa Development Community Organ on Politics, Defence and Security, and the African Union Peace and Security Council.

‘Namibia intends to use these opportunities to support strategies on increasing women’s leadership at international organisations and platforms,’ she added.

She highlighted that there is a need to support leadership development for women and girls in order to assist them in cultivating their political potential and professional skills.

‘There is also a need for increased integration of gender in national planning and budgeting as part of our strategies to train national officials to execute plans and programmes, hence strengthening the abilities of women to advocate for decision-making positions and political leadership in general,’ said Nandi-Ndaitwah.

The space for women’s participation in peace processes, including training women mediators and advocating gender equality measures, is critical to security policies and practices should be broadened.

In the context of the women agenda, Nandi-Ndaitwah said peace should not only signify the absence of peace in armed conflict, but should include ideas about peace in communities as sexual and gender-based violence (GBV) remains one of the barriers to attaining inclusive peace in the societies and communities.

‘That is why the centre has recently entered into an MoU to develop a mobile application aimed at coordinating responses to combat sexual GBV,’ stated Nandi-Ndaitwah.

Through joint efforts and working together, society and the country leadership can address challenges faced by women, including barriers to women’s participation in peace and security processes, she said.

Source: The Namibian Press Agency

Trade Union Congress of Namibia, has joined the nine national unions representing working people in countries on the Commonwealth Ministerial Action Group by demanding the suspension of Eswatini for its serious violations of human rights and the continued suspension of democracy.

A statement issued on Monday by TUCNA Secretary-General, Mahongora Kavihuha, indicated that since June this year, eSwatini workers have been demanding to have their democratic rights recognised by their government. “Currently, political parties are prohibited and trade unions are oppressed in Eswatini. The protests that started on 26 June 2021 were caused by the Eswatini government’s decision to ban the delivery of petitions by protesters. The petitioners were demanding a constitutionally established democracy in which the people elect their government representatives in full freedom,” he said.

According to Kavihuha, Eswatini security forces continue to use brutal force against citizens who are conducting their lawful business or engaging in peaceful protests.

In a report commissioned by the Trades Union Congress (TUC) in conjunction with TUCOSWA (the union movement of Eswatini) titled; ‘’Holding eSwatini to Account’, the Commonwealth Ministerial Action Group, unions from Australia, Barbados, Belize, Ghana, Kenya, Malaysia, Namibia, Samoa and the United Kingdom are demanding that Eswatini be suspended from the Commonwealth for its serial breaches of the Commonwealth Charter.

The unions also demand that Eswatini undertake a constitutional review in an all-inclusive and consultative process that involves civil society actors and political parties to establish a Law Reform Commission to embark on a law reform exercise.

They also demand the removal of all legislative and practical restrictions on political parties to contest democratic multiparty elections and enact legislation to allow for the recognition, registration and operation of political parties.

Furthermore, the unions advised that the country enact enabling legislation for the establishment of an independent and impartial Commission of Human Rights to undertake activities in the Global Alliance of National Human Rights Institutions, in accordance with the Paris Principles, while also adopting measures to ensure the independence of the judiciary.

Source: The Namibian Press Agency

A second quarterly report of the Ministry of Labour, Industrial Relations and Employment Creation (MLIREC) has shown an increase in the number of employers who issued notices of intent to dismiss their employees.

MLIREC’s acting executive director Lydia Indombo in the report released on Monday said the ministry received notices of intent to dismiss 881 employees from 117 employers from 01 July 2021 to 30 September 2021 which is an increase of 58 per cent, compared to the previous quarter of 55 per cent.

She said: ‘Although the number does not reflect the actual figure of retrenchments as employers are only required to inform the Labour Commissioner on their intention to dismiss, but not the actual number of retrenchments. It leaves much to be desired, especially in the state of the economy that the country finds itself in.’

During the period under review, the ministry dealt with 1 092 labour cases of which 568 (52 per cent) were resolved while 524 (48 per cent) were pending and will be dealt with during the next quarter, she said.

Indombo also said in order to ensure compliance with the provision of the Labour Act No. 11 of 2007, 387 inspections related to basic conditions of employment were conducted in the construction, domestic and informal sectors.

She added that the construction and informal sectors had more compliance levels rated at 75 per cent, while domestic was rated at 53 per cent in terms of compliance. With regards to compliance of occupational health and safety, 207 inspections were conducted in the construction, hospitality, retail and training institution sectors, and the overall compliance level is rated at 16 per cent, which also raises compliance concerns.

‘Namibia, for the first time in history, appeared before the committee on the application of standards on the application of International Labour Organisation Convention on discrimination at the International Labour Conference Session of 2021,’ she noted.

In order to arrest the situation, the ministry has been working hand in hand with the Office of the Ombudsman in order to among others, conduct thorough research in the public sector in order to establish the existence of discrimination pertaining to racism, ethnicity and inequality in employment, said Indombo.

Source: The Namibian Press Agency