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Prisons chief against scrapping of sodomy law

June 1, 2021, 3:00 pm
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Prisons chief against scrapping of sodomy law Prisons chief against scrapping of sodomy law Says sex between men bears reputational damage to NCS The commissioner general of prisons cited morals, religion and social stigma against inmates if sex between men is to become legal. KENYA KAMBOWE







RUNDU

Namibian Correctional Service (NCS) commissioner-general Raphael Hamunyela says legalising sex between men will tarnish the reputation of the country’s correctional services. This is why he is opposed to the distribution of condoms in prisons, he said.

The chief this week said sodomy is an “un-Christian and morally wrong act”.

Hamunyela’s remarks come at a time when justice minister Yvonne Dausab is preparing to submit two pivotal reports compiled by the Law Reform and Development Committee (LRDC) to Cabinet, proposing the abolishment of 34 obsolete laws - including the law criminalising sex between consenting adult men.

One of the obstacles caused by the sodomy law is the prohibition of distributing condoms within prisons.

Some high-profile public officials, such as former health minister Dr Bernhard Haufiku, have criticised the law and blamed it for hampering the fight against HIV among men in prisons.

Asked on Monday what his take on this debate is and what any changes would have on correctional services, Hamunyela said repealing the sodomy law would automatically mean legalising sex among male inmates, something he said he stands opposed to.

“I do not support the scrapping of the sodomy law,” Hamunyela said.

“The correctional facility is not a haven for sodomy. Namibia is a secular state but most people in our country are Christians. In terms of Christianity, we also abide and we don’t allow condoms in prisons because it is also against Christianity. We don’t want to create a situation that is not allowed,” he said.

“It will give the correctional facility a bad connotation because when people are released from custody, society will assume they were either sodomised or they sodomised others because they were given condoms.”

Scrap it already

In 2017, Haufiku was quoted in the media stating his support for distributing condoms in prisons.

He maintained his position this week, saying the sodomy law should have been scrapped years ago to help the fight against HIV.

“It should have been scrapped a long time ago. In our response to HIV nationally, we came across obstacles for incarcerated people in accessing healthcare services to HIV prevention and treatment and mostly prevention, blockage of distributing condoms in prison, and there are many reasons why it should be scrapped,” Haufiku argued.

“It is very unfortunate people equating the scrapping of old apartheid laws including the sodomy law with the legalisation of homosexuality. Those two things are different; it’s just a pity that the public see it the other way around.

“I think everybody knows since time immemorial that people do sleep with each other in prison - whether men to women or men to men or whatever the case may be. Even some staff who are working there sleep with inmates. That is a well-known phenomenon, not only in Namibia but all over the world,” Haufiku said.

“It’s just a matter of us not seeing far or burying our heads in the sand, but the truth is that those things are happening in prisons everywhere; that’s why it is important that preventative measures are accessed by inmates or otherwise we try to attend to one problem of crime and create the other one of health,” he further argued.

Shangula not aware

When contacted for comment, health minister Dr Kalumbi Shangula said he has no information that men are having sex with one another in prison.

He said he is currently pre-occupied with the fight against Covid-19.

“I have no information whether sex between men is taking place in correctional facilities. You can ask the portfolio minister. My preoccupation is Covid-19 that is affecting and killing Namibians,” he briefly said.

kenya@namibiansun.com
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Fishrot: Samherji executive castigates PG

June 1, 2021, 3:00 pm
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Fishrot: Samherji executive castigates PGFishrot: Samherji executive castigates PG JEMIMA BEUKES



WINDHOEK

Samherji executive Ingvar Júlíusson has hit out at Prosecutor-General (PG) Martha Imalwa for her alleged failure to inform the High Court that Icelandic prosecution authorities have rejected her request to have that company’s officials extradited to Namibia over the Fishrot scandal.

Júlíusson, in papers filed in the High Court, said Imalwa’s request was declined on 19 February, but she has not divulged this information to the court.

He works as the Icelandic fishing giant Samherji’s chief accounting officer and also served as the financial director for Saga Seafood, Esja Investment and Heinaste Investments.

These entities are at the heart of the Fishrot bribery scandal through which millions of dollars were embezzled, according to Namibian prosecutors.

The Icelandic accused are yet to be officially charged for their alleged part in this scheme and must first be extradited to Namibia.

This is contrary to a submission made in April by the state attorney Ed Marondedze that extradition proceedings were underway to bring the Icelanders to Namibia.

“What he should have stated to the court was that the PG’s efforts to extradite the directors of the foreign defendants failed. I cannot understand how the prosecutor could not have informed the court about this crucial fact. This omission by the PG is misleading and in serious need of explanation by the PG,” Júlíusson said.

Haphazard investigation

In his founding affidavit filed this week, he accused the PG of pushing a haphazard investigation with regards to payment made to a Dubai bank account while failing to report who these payments were made to.

Júlíusson also accused her of ignoring that there is no evidence that incriminates foreigners implicated in the Fishrot bribery scandal.

“She does not give a single example of a politician - other than perhaps indirectly Sacky Shanghala and Bernhardt Esau - who may have received payments from some of the other defendants and of which the foreign defendants - barring Johannes Stefansson - who received bribes. In short, her whole case is based on the theory that hundreds of millions were paid to dummies for onward payment to high political offices. But she points to no high political office towards which the multi-million Namibian dollars went,” he said.

According to him, Imalwa has failed to provide evidence that the Icelanders indeed promised to pay these payments which now amounted to a bribery scheme.

She also failed to inform the courts that her extradition order in February was recused by Icelandic authorities and that there is no guarantee that the ‘star witness’ Stefansson would make it to Namibia to testify, he said.



‘Self-confessed criminal’

Júlíusson urged government to stop relying on Stefansson’s statement, who, in his view, is a ‘self-confessed’ criminal.

“I say that based on these facts. The PG does not say that he [Stefansson] will come to Namibia and he himself does not say so either. The PG doesn’t say that she has offered him any indemnification against being arrested or of being charged when he comes to Namibia. Stefansson himself does not say that some sort of indemnification was offered to him. So, he knows that if he comes to Namibia, he will be arrested and bail will be opposed,” he said.

According to him, Stefansson knows that once he is arrested in Namibia, as a foreigner, the chances of securing bail will be slim and he will be convicted and sent to jail for a very long time.

Egill Helgi Arnason, another Icelander who stands accused of having played a role in the Fishrot bribery case, said there is no way he could have been involved because he only joined the Namibian fishing sector in January 2017 to replace Stefansson.

“I could thus simply not have been involved in any alleged corrupt scheme or any other wrongdoing that occurred before then. I could thus also not have formed any common purpose with any of the other defendants in respect of any of the alleged wrongdoing that occurred prior to 1 January 2017.”

jemima@namibiansun.com
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Ex-bank CEO says genocide deal equates lives to Neckartal dam

June 1, 2021, 3:00 pm
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Ex-bank CEO says genocide deal equates lives to Neckartal damEx-bank CEO says genocide deal equates lives to Neckartal dam JEMIMA BEUKES

WINDHOEK

Former Standard Bank Namibia CEO Vetumbuavi Mungunda says the present value of the settlement deal reached with Germany over genocide averages N$7 billion, comparing this to the cost of Neckartal dam.

“I just can’t believe how anyone could have arrived at such a meagre amount, which when presently valued is actually about N$6 billion to N$8 billion, the costs of one Neckartal dam for the over 85 000 lives lost and over 15 million hectares of land taken away,” he lashed out.

“Either the colleagues who are putting this agreement for consideration cannot think in trillions, which is the actual cost of the damage, given that our gross domestic product and annual budgets are still in billion, or there is serious lack of commitment to a just and fair reparation settlement.”

The two governments reached consensus on N$18 billion, to be paid in portions over 30 years. This has infuriated many from the Ovaherero and Nama communities, who are demanding at least N$8 trillion in reparations.

Mungunda called on Germany to follow past precedence in dealing with the issue.

He pointed out that 70 years ago, Germany paid US$822 million to the Holocaust survivors in 1952, at that time the equivalent of N$12.3 trillion.

According to him, in today’s value, that settlement would be in the range of N$506 trillion, assuming a discount rate of 10% over the last 70 years.

“We can learn from the mechanics of how their calculations were derived. Some of the questions arising is whether the payment should be based on the number of lives lost or the lives lost projected as of today.”

Population growth

“Although 85 000 lives were lost in 1904, assuming population growth over the last 120 years for example using an annual population growth of 3%, the projected lives lost in today’s terms is actually 2 950 434. I suggest that the premise and stance of our negotiations should be clear that the quantum would increase every year until Germany settles this reparation demand once and for all,” he said.

Mungunda added that the loss of land alone would be more than N$1.5 trillion, assuming 15 million hectares was grabbed following the genocide, and at a low value of N$1 000 per hectare.

“In terms of livelihoods, there are estimates of the livestock owned by the Ovaherero and Namas before the genocide - we can use that as basis at today’s value per head. We know the trauma suffered, and we need to quantify the costs of remedial actions and programmes necessary to ‘reparate’ and ‘restore’ the dignity of the communities suffered.”

Racism

Social scientist Sima Luipert echoed these sentiments, adding: “The German-Jewish reconciliation is a story of hope, progress, and mutual faith, because the Germans and Jews negotiated as equals.

“The logic of the German government, claiming that they can only speak to the state, creates questions about why they were ready to speak to 23 different Jewish communities, yet not to African communities. That’s racism in every sense of the word and any form of diplomatic jargon is superficial,” she said.

Sima, who is also a grandchild of a genocide victim, said true reconciliation can only be reached once Namibians are seen as human beings and not objectified.

“Denying the victim communities their rightful place at the negotiating table is a continuation of the objectification which eventually culminated in a horrific genocide.”

jemima@namibiansun.com
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Africa, Asia find ways to plug health gaps

June 1, 2021, 3:00 pm
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Africa, Asia find ways to plug health gapsAfrica, Asia find ways to plug health gapsDrones to digital From India to Liberia, the pandemic has underlined the crucial role that social enterprises can play in bridging health gaps, investors say. We're providing an aspirational career and helping them cross socio-economic barriers. - Kunaal Dudeja, Co-founder: Virohan Institute Emma Batha - As Covid-19 strains Pakistan's health system, tens of thousands of women doctors are sitting at home, their talents squandered in a country where millions have no access to medical care.

Many families encourage their daughters to study medicine not for a career, but to bolster their marriage prospects. The phenomenon even has a name - "doctor-brides".

Appalled by the waste of expertise, entrepreneur Sara Saeed Khurram has set up a telemedicine platform enabling female medics to provide e-consultations from their homes to patients in rural communities.

"Half the population in Pakistan – 100 million people – never get to see a doctor in their lifetime," Khurram, CEO of Sehat Kahani, told the Thomson Reuters Foundation.

"At the same time we have another big challenge which is very close to my heart - more than 60% of our doctors are women, but most don't work."

MYRIAD OF SOCIAL ENTERPRISES

Sehat Kahani is among a myriad of social enterprises - businesses seeking to build a better world - that are innovating to plug healthcare gaps in developing countries, a task given added urgency by the Covid-19 crisis.

G20 countries, health organisations and other experts recently met for an online summit to share lessons from the pandemic and brainstorm on how to bolster health systems.

Khurram, who has seen patient numbers increase ten-fold during the pandemic, believes her model could be replicated in other developing countries with doctor shortages.

Since launching in 2017, Sehat Kahani has established 35 rural telemedicine clinics across Pakistan where, for a small fee, a patient can see a nurse who will link them via the platform to a doctor.

The nurse is trained to carry out examinations guided by the doctor who may be sitting at home hundreds of miles away.

Patients with a smartphone can also contact a doctor directly via an app.

Khurram, herself a doctor, said the doctor-bride phenomenon, compounded by a brain-drain, meant only 90 000 of Pakistan's 200 000 trained doctors were practising in the country.

"A female doctor gets the best hand in marriage so everyone wants their daughter to become a doctor, but not everyone wants their daughter-in-law to work," she said.

"Our platform opens up opportunities. Now they can suddenly create a whole virtual clinic in their home."

DOUBLE MISSION

In neighbouring India, where an escalating Covid crisis has left the health system on its knees, entrepreneur Kunaal Dudeja said the country needs about 30 million more healthcare professionals to support doctors and nurses.

In 2018, he co-founded Virohan Institute to train young people, many from lower income backgrounds, in dozens of paramedical roles from laboratory technicians to operating theatre assistants.

"Our social mission is two-fold - to significantly improve the quality of healthcare in India, and to improve the lives of youth," Dudeja said, adding that student numbers had more than doubled during the pandemic.

"We're providing an aspirational career and helping them cross socio-economic barriers."

After qualifying, a trainee can quadruple what they would earn in the sorts of jobs typically open to them, Dudeja said.

Most of Virohan's 5 500 graduates are now working on the frontlines of the Covid crisis.

The start-up, which operates across five states, is looking to expand across the country and potentially to Sri Lanka.

RAPID RESPONSE

Across Asia, Africa and Latin America, many social enterprises are working at a grassroots level, using everything from rickshaws to drones to deliver medical supplies to poorer communities.

Yunus Social Business, which invests in Virohan and other social businesses tackling poverty, said the pandemic has underlined the crucial role such ventures can play in bridging health gaps.

CEO Saskia Bruysten said social enterprises were often better placed than the government to respond fast in a crisis because they already worked with the most vulnerable.

"They are just closer to where the need is biggest. They're usually the ones that can come in first because they see the need directly," she said.

"Often government is very far removed, a little bit in an ivory tower, and doesn't necessarily have the infrastructure to reach that last person somewhere in a rural area."

‘BEAUTIFUL SHINING STAR’

Bruysten described social enterprises as the "beautiful shining star" of a new type of capitalism, motivated by engendering social change rather than enriching shareholders.

Many have quickly adapted their operations during the Covid-19 crisis.

With the pandemic making travel harder, Uganda's Kaaro Health, which runs solar-powered container clinics, is sending nurses to treat patients at home, and putting its technicians on motorbikes to collect medical samples and deliver prescriptions.

Kenyan business Solar Freeze, which has pioneered the use of solar-powered chest freezers to help farmers cut post-harvest waste, is repurposing its units to store Covid-19 vaccines and other medicines requiring cold temperatures.

It has supplied scores of freezers to rural clinics lacking electricity and to Kakuma Refugee Camp in northwest Kenya - home to 160 000 refugees from more than half a dozen countries.

COLLABORATION

Social enterprises are also collaborating with governments and businesses.

In Liberia, Last Mile Health has partnered with the government to vaccinate health workers including a network of rural community health workers created after the 2016 Ebola crisis who have been trained to spot Covid-19 symptoms.

VillageReach is using drones to speed up diagnosis of Covid-19 test samples and deliver protective medical equipment in Malawi and Democratic Republic of Congo, and will use them to fly vaccines to remote areas when immunisations get under way.

In Pakistan, Sehat Kahani's Khurram said they had liaised with the federal government to provide free consultations to all patients during the first wave of Covid-19.

They also installed apps in hospital intensive care units treating Covid patients, allowing junior doctors to get immediate advice from critical care experts based elsewhere.

"In a pandemic, solutions like these can be crucial." Khurram said. "This has already saved many lives."– Nampa/Reuters
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Covid spurs global push to tackle wealth gap

June 1, 2021, 3:00 pm
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Covid spurs global push to tackle wealth gapCovid spurs global push to tackle wealth gapIf not now, when? Developed countries' dominance of access to the vaccines needed kick-start economies has led to urgent warnings that disparities between rich and poor nations will grow. The silver lining from the pandemic is that maybe there's an opportunity here for us to review and renegotiate the social contract. - Francisco Ferreira, Director: International Inequalities Institute Dhara Ranasinghe - Governments worldwide, facing strong evidence that fallout from Covid-19 has widened wealth gaps as well as wrecking economies, have expanded social safety nets and in some cases begun exploring bolder ways of tackling the imbalances.

The massive injections of fiscal and monetary stimulus and ideas such as one-off taxes on the rich and basic income support for the poor potentially set the scene for the biggest egalitarian shift since generous welfare states emerged in western Europe after World War Two.

"The silver lining from the pandemic is that maybe there's an opportunity here for us to review and renegotiate the social contract," said Francisco Ferreira, director at the International Inequalities Institute at the London School of Economics (LSE).

Recovery programmes have set many major economies on the path of quick rebounds after a torrid 2020, and the International Monetary Fund (IMF) estimates global gross domestic product (GDP) will grow 6% this year, a rate unseen since the 1970s.

WIDENING DIVISIONS

But behind that encouraging headline, divisions are widening.

United States, one of the few countries to provide extensive ethnic breakdowns of economic data, April figures showed unemployment among whites falling from 14.1% a year ago to 5.3%; black unemployment only dropped from 16.7% to 9.7%.

A March report on the gender gap by the World Economic Forum (WEF) concluded that it would now take an average of 135.6 years for women to reach parity with men on a range of factors including economic opportunity and political power.

That is up from the 99.5 years outlined in its 2020 report, which marked a 36-year gain.

Meanwhile, developed countries' dominance of access to the vaccines needed to ease restrictions and kick-start economies has led to urgent warnings that disparities between rich and poor nations will grow.

A NEW ECONOMICS?

With the pandemic having highlighted existing inequalities – for example lower-paid workers concentrated in the service sector jobs hit hardest by lockdowns – some signs of a more incisive policy response are however emerging.

"An important place where that's really happening is the US, where the [Joe] Biden administration represents a serious break from the past," the LSE's Ferreira said.

The president's US$1.8 trillion American Families Plan is expected to lift over five million children out of poverty and includes proposals for paid family and medical leave.

His administration's push for a 15%-plus global minimum corporate tax is also gaining widespread traction.

Economists believe such policies could mark a departure from the Reagan-Thatcher era of "small government" that has dominated financial markets' thinking for much of the past four decades.

The IMF plans to better account for risks related to climate change, inequality and demographics in its economic assessments.

RADICAL REDISTRIBUTION

It has urged advanced economies to use progressive taxation to alleviate inequalities exposed by Covid-19 including, as figures quoted by Oxfam show the world's billionaires got US$3.9 trillion richer between March and December 2020, possible taxes on accumulated wealth.

A more radical redistribution of wealth, the universal basic income (UBI), is also seeing renewed interest with Wales looking to pilot such a programme. It was trialled in Finland in 2017.

"There is a direction of travel, which is moving towards the UBI model," said Mike Savage, author of The Return of Inequality. "I think Covid will increase interest in UBI as a perspective."

Central banks – which have sought to deflect criticism that their handouts, through bond purchase programmes, have worsened inequalities by inflating house and other asset prices out of reach of many – are showing a more explicit interest in societal issues.

The Federal Reserve has committed to "inclusive" full employment, citing the drag on economic potential from marginalised groups and income inequality. Addressing inequality is also on the European Central Bank's radar.

THE POPULIST THREAT

Whether any of this will amount to real change is debatable. A rise in sovereign bond yields this year suggests markets have priced in a certain shift away from austerity but nothing more.

Yet some argue the status quo could prove politically unsustainable.

"The idea is that a crisis can be a turning point and it's too soon to judge whether thoughtful policies will be transformative," said Tina Fordham, partner and head of global political strategy at advisory firm Avonhurst.

"But if we don't use the opportunity presented by the pandemic crisis to build back better, then we should be very concerned about a resurgence of populism not limited to the next 12 months but over the next one to two election cycles."

Rising inequality is commonly cited as a factor behind rising populism since the global financial crisis and added fuel to the Black Lives Matter protests that erupted last year.

It could feature in Europe's most important vote this year, September's German federal election. Promises to raise the minimum wage and consider wealth taxes are part of the debate, so are surging house prices.

SCOPE FOR DISAPPOINTMENT

But while a crisis can be a catalyst for change, the scope for disappointment is high with past talk of more inclusive forms of capitalism often producing few tangible results.

The LSE's Ferreira says government should reduce reliance on "blunt" policy tools like hefty monetary stimulus as they emerge from crisis-fighting.

The Resolution Foundation think tank says Britain, criticised over plans to "level up" the economy with 830 million pounds (US$1.2 billion) of urban renewal projects outside London, lacks a plan to address long-term challenges.

Equally, doubts persist over the European Union's 750-billion-euro plan to create a more resilient economy and ensure the bloc's rich and poor nations do not diverge further.

Ella Hoxha, senior investment manager, global bonds at Pictet Asset Management, said that while measures put forward by Italian prime minister Mario Draghi to address inequality are encouraging, "a heavy dose of caution" is warranted because Italy has struggled to reform its economy in the past.

Fordham at Avonhurst said authorities needed to take into consideration both the opportunity to reform and the imperative to do so.

Otherwise, "we're simply planting seeds that will come back to haunt us in five to 10 years' time," she said. – Nampa/Reuters
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VAT refund audits conducted at NAMRA

June 1, 2021, 3:00 pm
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VAT refund audits conducted at NAMRAVAT refund audits conducted at NAMRA Carmen Fransman - More and more taxpayers find themselves in a value-added tax (VAT) refund position.

This could be the result of increased imported stock, earning zero-rated revenue or significant local acquisition of fixed assets during a tax period, leading to a higher input tax amount deducted from the output tax payable. Refunds are not automatically paid out as most refunds are subject to an audit. Herewith an overview of what to expect and what may be requested when subject to a desk-VAT refund audit.

PRE-AUDIT

Periods flagged for audit are indicated on the Integrated Tax Administration System (ITAS) of the Namibia Revenue Agency (NAMRA) as “to be audited”. Taxpayers are required to secure an audit date with the official responsible for their casefile. Following the confirmation of a date, the taxpayer is required to provide a copy of the VAT return(s), bank statements and a summary of all the input and output for each of the selected periods.

DURING THE AUDIT

Taxpayers should be prepared to answer questions pertaining to the below, as an introduction to the audit: nature of the business, source of revenue and accounting basis. The following documentation is required to be readily available, as published in the “Guide for Pre-Audit” (October 2017) by the VAT Desk Audit department:

Income declared (Output):

Sales VAT summary for the period(s), bank statements for the period(s), loan agreement(s), and zero-rated sales (i.e. for exports, present related tax invoice(s) and exportation documents). Construction companies must present tax invoices/contract for work done in the period and information on the accounting system used.

Expenditure claimed (Input):

Purchases VAT summary for the period(s) and historical VAT summaries for period(s) to which the input adjustments originally belonged. In the event that capital goods were claimed, both tax invoices and vehicle registration certificates from NaTIS must be presented. In cases whereby only imports are being claimed and are the main cause of the refund, the related ASYCUDA report and/or SAD 500 must be presented.

POST-AUDIT

The official prepares an audit report for superior review and approval, followed by the refund being indicated as “cleared” for payment.

The amount of the refund is first applied to any outstanding tax, interest or penalty payable in terms of relevant provisions per the VAT Act. Any credit balance remaining, shall be refunded to a taxpayer no later than the end of the second calendar month following the date the credit balance arose.

Any balance of delayed refunds attracts interest at the rate of 11% per annum, calculated from the due date prescribed above to the date of payment. Taxpayers are encouraged to maintain a “good standing” record of all their tax accounts as any non-compliance may impact or delay the payment of refunds.

* Carmen Fransman is the manager: indirect tax at PwC Namibia. Contact her at carmen.fransman@pwc.com
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New developmental take on tradition

June 1, 2021, 3:00 pm
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New developmental take on traditionNew developmental take on tradition‘Recalling makalani’ An art exhibition chronicles how contemporary society redefines the use of the ancient makalani tree in a continuous strive for social and economic development. There is a need to embrace innovation. – Fillipus Sheehama, Artist Ndalimpinga Iita – Versatile makalani nuts can help economically disadvantaged rural women in their plight to transform their lives and break generational poverty, Namibian artist Fillipus Sheehama says.

Evolution, heritage, innovation and encounters of multiple benefits of the makalani (palm) tree, widely used in many rural settings in Namibia, inspired Sheehama's "Recalling Makalani: Material Exploration" exhibition in Windhoek.

The exhibition, which explores makalani nuts, bones of domestic animals and wildlife, as well as wires and ropes, features diverse installations and artwork made out of organic and other discarded materials.

The focus on various elements of the makalani and recycled material aims to highlight tradition, modernity, dominance, tension, unity and proposal of robust innovation in the different artworks.

"The aim is to challenge old traditions, perceptions and draw new insights on indigenous cultures, practices to drive innovation that would transform and uplift people at the grassroots level. Art can shift notions," Sheehama says.

REDEFINE

The exhibition chronicles how contemporary society redefines the use of the ancient makalani tree in a continuous strive for social and economic development.

According to Sheehama, the makalani tree, livestock, and wildlife have served a crucial role in many societies in many social settings across the country. The multi-purpose plant is a source of food, energy source, mats made out of leaves and liquor from dried makalani fruits, hence the need to transform domestic practices around the plant.

It also provides an overview of the historical importance and current evolutionary state of the makalani.

"With many people in rural areas depending on the makalani tree for livelihood, exhibition viewers were able to get a glimpse of the deconstruction and evolution of the makalani in art," he added.

GRASSROOTS

The grassroots cannot be disconnected, according to art experts. Samuel Amunkete, an official from the ministry of education, arts and culture, said that the exhibition further explored the historical events of the palm tree.

"More uses and methods such as making liquor from dried fruits of the makalani tree were also derived from counterparts in Angola way before the country's independence in 1990. This exhibition is thus critical in the preservation of culture," Amunkete said.

Moreover, the exhibition stood up for economically disadvantaged rural women's plight and helped them transform their lives and break generational poverty.

"It was central to women empowerment who sold products such as handmade mats and the traditional liquor brewed from makalani fruits to generate an income. I focus on found objects because these carry the memories of the people at the grassroots who used them. While the exhibition highlights these, the proposal is that there is a need to embrace innovation," Sheehama adds. - Nampa/Xinhua
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Banks bite earnings bullet

June 1, 2021, 3:00 pm
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Banks bite earnings bulletBanks bite earnings bulletNPLs trigger-happy Sky-high non-performing and overdue loans, as well as huge increases in impairment charges remain the smoking gun of the pandemic pain inflicted on commercial banks. Due to the sharp economic downturn, banks’ earnings and asset quality could further deteriorate as borrowers’ capacity to service loans weakens and the loan payment moratorium is lifted. - IMF Jo-Maré Duddy – Non-performing loans in the Namibian banking sector spiked by more than N$1.3 billion or nearly 25% from the end of March 2020 - when Covid-19 first locked down the economy - to the end of last year.

Financial soundness data published on the website of the Bank of Namibia (BoN) shows the industry’s non-performing loans (NPLs) totalled nearly N$5.4 billion at the end of the first quarter of 2020. Three months later it rose by 9% to nearly N$5.9 billion. In the third quarter, NPLs climbed by a further 12% to about N$6.6 billion. Banks ended last year with an NPL total exceeding N$6.7 billion.

A loan is regarded as an NPL when a borrower hasn’t made regular payments for at least 90 days. A significant indicator of a bank’s asset quality is its NPL ratio - the ratio of the amount of NPLs in a bank's loan portfolio to the total amount of outstanding loans the bank holds.

The banking industry’s NPL ratio at the end of December 2020 was 6.4%, slightly better than the 6.5% of the previous quarter. In both cases, however, the NPL ratio exceeded the BoN’s new supervisory intervention trigger ratio of 6.0% for times of crisis.

‘PERSISTENT INCREASE’

According to the central bank’s Financial Stability Report (FSR) of April 2021, “the persistent increase in NPLs is ascribed to unfavourable economic conditions, cash flow constraints experienced by both households and businesses and the downside risk emanating from the Covid-19 pandemic, which caused business to either scale down operations or close”.

The BoN’s financial soundness data shows the banking sector’s NPL ratio at the end of 2015 was 1.6%. The current recessionary cycle Namibia is stuck in started in 2016, when the NPL ratio was 1.5%.

The ratio has been on an upward trajectory since then: 2.5% in December 2017; 3.6% a year later; and 4.6% at the end of 2019. The situation deteriorated rapidly in 2020: in the first quarter, the NPL ratio was 5.2%, followed by 5.8% in the second, 6.5% in the third and 6.4% in the last quarter of the year.

BoN data indicates the impact of the recession and pandemic on the asset quality of the banking sector has been considerably worse than in the 2007/8 global financial crisis. At the end of 2007, the industry’s NPL ratio was 2.8%, followed by 3.1% in 2008 and 2.7% at the end of 2009.

HOME TRUTHS

Mortgages last year dominated the industry’s NPLs by far, according to the BoN’s Annual Report 2020. At the end of last year, mortgage NPLs exceeded N$4.1 billion and represented about 61% of total NPLs. In 2016, mortgage NPLs amounted to nearly N$775.3 million or 59% of all NPLs.

Mortgage NPLs increased by 24.2% year-on-year (y/y) in 2020.

According to the BoN, mortgage loans contributed significantly to the growth in the NPL ratio during the period under review. “However, this is expected given that mortgage loans make up 52.3% of the total loan book of banks,” it added.

“Current economic conditions played a rather large role in the ability of clients to service their debt, more so with lay-offs and retrenchments experienced,” the BoN said.

Overdraft NPLs totalled more than N$1 billion, jumping 59.7% y/y and representing about 15% of total NPLs. In 2016, overdraft NPLs were about N$160.2 million or around 12% of all NPLs.

NPLs in the category for personal loans, as well as other loans and advances skyrocketed by 76% and 60.8% y/y respectively and amounted to nearly N$320.6 million and N$891.7 million respectively at the end of 2020.

Instalment sales NPLs rose by nearly 17% y/y to some N$313.8 million, while NPLs on credit cards jumped by 29% y/y to nearly N$40.7 million.

OVERDUE

Overdue loans at banks totalled about N$10.5 billion at the end of 2020, about N$1.4 billion or 15% more than the previous year. In 2016, the industry’s total overdue loans were nearly N$2.5 billion.

The majority of overdue loans in 2020 – nearly N$3.97 billion or 38% of all overdue loans – were outstanding for 12 months or more. In 2019, the ratio was about 36% and in 2016 around 31%.

About N$2.1 billion was overdue for less than two months, down nearly 29% y/y. Nearly N$1.7 billion was overdue for two, but less than three months – up around 46% y/y. Loans overdue for three, but less than six months also totalled nearly N$1.7 billion, an increase of 62.5% y/y. The amount overdue for six months, but less than 12 was nearly N$1.06 billion, up some 67% y/y.

DOWN THE DRAIN

In line with the deterioration in asset quality, the write-offs in relation to profits increased last year, the BoN said in its FSR.

In 2019, commercial banks had to write off 2.47% of their profits. Last year, the figure was 11.09%. Using the BoN’s net income after tax data for the banking industry in its Annual Report 2020, that means the sector wrote off nearly N$202.2 million last year. In 2019, the figure was around N$67.6 million.

“The increase in the write-off to profits ratio reflects the recessionary economic conditions triggered by Covid-19 and is expected to improve once the economy recovers during the course of 2021 and 2022,” the BoN said.

The banking sector’s after-tax profits fell by 33.4% or some N$900 million y/y to N$1.8 billion in 2020. From 2016 to 2019, the industry’s average annual profit was nearly N$2.6 billion.

The industry was also hit by historically low interest rates. The BoN in 2020 dropped its repo rate by 275 basis points from 6.5% at the beginning of 2020 to 3.75% at present to provide relief to the domestic economy. That caused the prime lending rate to fall from 10.25% to 7.5% with a year.

The sector earned nearly N$10.7 billion in interest income in 2020, a drop of more than N$2 billion or nearly 16% compared to 2019. This is the industry’s lowest interest income since 2016.

FIRING POWER

Experts agree that, for the foreseeable future, there is no vaccine to boost the asset quality of the sector.

“Due to the sharp economic downturn, banks’ earnings and asset quality could further deteriorate as borrowers’ capacity to service loans weakens and the loan payment moratorium is lifted,” the International Monetary Fund (IMF) said in its latest Staff Report on Namibia, released in April this year.

In April 2020, the BoN implemented debt relief measures which allowed commercial banks to provide clients a repayment holiday on the principal amount for a period ranging from 6 months to 24 months based on thorough assessment of economic and financial condition of individual borrowers.

Commercials banks last year granted clients severely impacted by the Covid-19 pandemic debt relief to the tune of N$10.3 billion in total, according to the BoN’s FSR.

About N$4.5 billion or 44% of this was relief to individuals. Most of the relief – N$4.7 billion or 46% - was granted for a period of one to three months. Nearly 19% of holidays were granted for four to six months, while 4% was applicable for seven to 12 months.

“Preserving financial stability while supporting the private sector is key,” the Fund advised.

IMPAIRMENTS

In their latest review on the Namibian banking sector, released last month, Cirrus Securities said impairment levels reached record levels in the 2020 calendar year. “We believe heightened impairments are here to stay due to the ailing economy,” Cirrus added.

An impairment is commonly used to describe a drastic reduction in the recoverable amount of a fixed asset, according to Investopedia.

The latest financial results of financial institutions listed on the Local Index of the Namibian Stock Exchange (NSX) show huge increases in impairments charges y/y.

Both Capricorn Group, holding company of, among others, Bank Windhoek, as well as FirstRand Namibia with FNB Namibia as its flagship brand, released their results for the six months ended 31 December 2020.

Capricorn’s impairment charges were N$155.6 million, an increase of 186.6% y/y. FirstRand Namibia reported impairments charges of N$150.6 million, up 27.6% y/y.

SBN Holdings, owner of Standard Bank Namibia, and Letshego Holdings Namibia released their results for the 12 months ended 31 December 2020. SBN reported impairment charges of N$253.9 million, an increase of 6.2% y/y. Letshego allowed for impairment charges of N$31.3 million, up 238.7% y/y.

‘RISK HERE TO STAY’

According to Cirrus: “We therefore expect the industry loss given default to increase, leading us to believe that industry-wide higher impairments and increased credit risk are here to stay.”

The analysts added: “While the Covid-19 overlays will disappear from financials, we do not foresee credit risk returning to CY ’19 [calendar year] levels before CY ’23. This is due to our expectation that the Namibian economy will only return to 2019 real output levels in 2023.

“The result will be a prolonged economic contraction with no real expectation for imminent material GDP [gross domestic product] growth, especially on a per capita basis, resulting in a higher probability of default.”

MONITORING

According to the BoN’s FSR, the banking sector in 2020 “remained liquid, profitable and well capitalised amidst the adverse impact of the Covid-19 pandemic induced recessionary conditions”.

The central bank added: “The potential impact on financial stability originating from both liquidity constraints and asset quality deterioration in the banking sector was assessed to be medium.”

To mitigate the impact of the deterioration in asset quality, the BoN implemented additional regulatory reporting and will continue to monitor heightened credit risk going forward, it said.

The IMF, in its latest Staff Report, said the BoN strengthened reporting requirements by banks and was planning to conduct an assessment of asset classification, suspension of interest and provisioning for two systemic banks.
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Capricorn sends off women’s cricket team

June 2, 2021, 3:00 pm
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Capricorn sends off women’s cricket team Capricorn sends off women’s cricket team Jesse Jackson Kauraisa



WINDHOEK

Capricorn Group has urged the Namibia national women’s cricket team to perform to the best of their abilities during their recent assignments.

The group said this at the official sending off of the team that jetted to Rwanda yesterday.

Capricorn and Cricket Namibia also announced a partnership which will focus on the national women’s team.

The team will be playing in a tournament which serves as a build-up and preparation for the ICC Women’s T20 World Cup Africa qualifiers.

“Today, we are sending off Namibia’s national women’s cricket team to the Women’s Kwibuka Tournament scheduled to take place in Kigali, Rwanda.

“We are proud to announce that we have entered into an agreement with Cricket Namibia to become a main sponsor of women’s cricket with a specific focus on the national women’s team – the Eagles – as well as the girls’ festivals/tournaments and school league to further develop girls’ programmes,” Marlize Horn, the group’s executive of brand and corporate affairs, said.

Making an impact

The official announcement of the partnership between Capricorn Group and Cricket Namibia as well as details on the sponsorship agreement will be shared at an official event when the team returns from Rwanda.

“To Francois van der Merwe, the head coach, and the rest of the team, we wish you safe travels and a successful tournament. We look forward to seeing you carrying the Namibian flag with pride on and off field and making an impact on the world stage.

“Ladies, you have much to look forward to, and Capricorn is very proud to support you in international cricket. Good luck!” Horn said.

The competition in Rwanda commences on Monday as Namibia battles against Nigeria and Kenya in a group, while the other group sees Uganda, Botswana and Rwanda clashing in T20 matches for the top final places.

Namibia will first play Nigeria on 7 June before they battle Kenya on 8 June and Nigeria on 10 June.

The team will then play Kenya again on 11 June.
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No one will protect you – Nakathila

June 2, 2021, 3:00 pm
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No one will protect you – NakathilaNo one will protect you – NakathilaNamibian set for business Jeremiah Nakathila said no one will protect Shakur ‘Fearless’ Stevenson in the ring on 12 June. Limba Mupetami







WINDHOEK

At a farewell press conference held yesterday at the MTC headquarters in Windhoek, Namibian super-featherweight ace Jeremiah ‘Lowkey’ Nakathila promised to whip American boxer, Shakur ‘Fearless’ Stevenson, next Saturday at the Virgin Hotel in Las Vegas.

Nakathila will face Stevenson for the interim World Boxing Organisation (WBO) title in a 12-round super featherweight bout which could go either way, depending on the tactics from each boxer.

Asked whether Stevenson’s sparring partners such as the likes of welterweight king Terence Crawford and advisors such as legendary boxer Mike Tyson scare him, the Namibian said no.

On his podcast show, ‘Hotboxin’ with Mike Tyson’, Tyson said: “If this guy lays a glove on you, you should retire. That guy couldn’t hit you even if you were blindfolded”, referring to Stevenson.

The boxing legend clearly feels Nakathila is no match for the American, Tyson credited Lowkey when he said “he’s tough too, though”.

No fear

Nakathila responded to this by saying he has no fear.

“None of them [Crawford and Tyson] will protect him [Stevenson] when we get into the ring,” Nakathila said.

He further added that his training has been great and that they have tied up all lose ends.

The Namibian has been sparring with the likes of South Africa’s Jeff Magagane. Magagane will also accompany him to the US with trainers Nicky Natangue and SBK Kaperu.

Meanwhile, promoter Nestor Tobias from MTC Nestor Sunshine Tobias Academy said Tyson “is a great guy but he doesn’t care about Stevenson, only his podcast show”.

“So, we are not worried. It can’t get better than this. Las Vegas is the capital of world boxing. The whole world will be following this fight. It is a great opportunity for Namibia.

“It won’t be a walk in the park and we are not undermining him. We also hope that he is not undermining us,” Tobias said.

Nakathila has 22 fights in total - 21 wins and one loss, while Stevenson remains undefeated as a professional in 15 fights and enters the bout as the heavy favourite.

Confident sponsor

At the send-off, MTC’s Tim Ekandjo said this fight is a massive and great opportunity for Nakathila.

“When you leave, remember that you are representing the whole country so that the whole world will see a glimpse of Namibian boxing.

“We have seen the likes of Harry Simon Sr, Paulus Moses, Paulus Ambunda as well as Julius Indongo through this road, now it’s you, Nakathila.

“Maintain your focus. You are not going on holiday, don’t lose focus,” Ekandjo added.

He added that they are in talks with Top Rank to broadcast the fight in Namibia.
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The $15 billion jet dilemma facing Boeing’s CEO

June 2, 2021, 3:00 pm
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The $15 billion jet dilemma facing Boeing’s CEOThe $15 billion jet dilemma facing Boeing’s CEO NAMPA/REUTERS



Boeing Co CEO Dave Calhoun faces a multibillion-dollar dilemma over how to rebuild sales in its core airliner business that has sparked an internal debate and put the future of the largest US exporter on the line, industry insiders say.

Boeing is reeling from a safety scandal following crashes of its 737 MAX airliner and an air travel collapse caused by the Covid-19 pandemic. Those crises have overshadowed a deeper, longer term risk to the company's commercial passenger jet business.

Boeing's share of the single-aisle jetliner market - where it competes in a global duopoly with Airbus - has faded from some 50% a decade ago to roughly 35% after the 737 MAX's lengthy grounding, according to Agency Partners and other analysts.

Airbus' single-aisle A321neo has snapped up billions of dollars of orders in a recently booming segment of the market, as the largest MAX variants struggled to block it.

Without a perfectly timed new addition to its portfolio, analysts warn America risks ceding to Europe a huge portion of that market - valued by plane-makers at some $3.5 trillion over 20 years.

But Boeing is not yet ready to settle on a plan to develop a new plane to counter the A321neo, and two leading options - press ahead now or wait until later - come with financial and strategic risks, several people briefed on the discussions said.

"I'm confident that over a longer period of time, we'll get back to where we need to get to and I'm confident in the product line," Calhoun said in April as Boeing won new MAX orders.

Asked about the company's discussions and options over a potential new airplane, a Boeing spokesman said it had no immediate comment beyond Calhoun's remarks to investors.

Options

A weakened Boeing has little margin for error, especially as it tackles industrial problems hobbling other airliners.

Boeing's first option is to strike relatively quickly, bringing to market by around 2029 a 5 000-mile single-aisle jet with some 10% more fuel efficiency. That could potentially be launched for orders in 2023.

"There is no better way to fix their image than invest in the future now, pure and simple," Teal Group analyst Richard Aboulafia said.

A new single-aisle jet would replace the out-of-production 757 and fill a void between the MAX and larger 787, confirming a twist to earlier mid-market plans as reported by Reuters in April last year. The idea took a backseat early in the pandemic, before regaining attention.

It would also be an anchor for an eventual clean-sheet replacement of the 737 family.

An alternative option is to wait for the next leap in engine technology, not expected until the early 2030s. That could involve open-rotor engines with visible blades using a mixture of traditional turbines and electric propulsion.

Wary of letting short-term product decisions drive strategy, Boeing is also prioritising a deeper dive into investments or business changes needed to regain the number one spot, analysts say.

Timing dilemma

Both approaches carry risks. If it moves too quickly, Boeing may face a relatively straightforward counter-move.

Airbus' preference is do nothing and preserve a favourable status quo, European sources say. But it has for years harboured studies codenamed ‘A321neo-plus-plus’ or ‘A321 Ultimate’ with more seats and composite wings to repel any commercial attack.

Such an upgrade might cost Airbus some $2 to 3 billion, but far less than the $15 billion Boeing would spend on a new plane.

For Boeing, a premature tit-for-tat move runs the risk of merely replicating the strategic spot it finds itself in now.

If it moves too slowly, however, investors may have to bear a decade of perilously low market share in the single-aisle category, the industry's profit powerhouse.

Those urging restraint, including soon-departing finance chief Greg Smith, have a simple argument, insiders say.

Boeing has amassed a mountain of debt and burned $20 billion in cash lurching from crisis to crisis.

"It's a different world," one insider said. "How could you possibly be thinking about a new airplane?"

However, some engineers at Boeing's Seattle commercial home are crying out for a bold move to reassert its engineering dominance following the worst period in its 105-year history.

"That should be a priority for Boeing right now," Tom McCarty, a veteran former Boeing avionics engineer, said. "To get back in clear leadership of advancing technology."
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Climate change to blame for increase in plant pests

June 2, 2021, 3:00 pm
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Climate change to blame for increase in plant pestsClimate change to blame for increase in plant pestsThreat to food security increases The FAO estimates that annually up to 40% of global crop production is lost to pests. ELLANIE SMIT







WINDHOEK

Due to the impact of climate change, plant pests that ravage economically important crops are becoming more destructive and pose an increasing threat to food security and the environment, a scientific review found.

‘The Scientific Review on the Impact of Climate Change on Plant Pests: A global challenge to prevent and mitigate plant pest risks in agriculture, forestry and ecosystems’ was prepared under the auspices of the secretariat of the International Plant Protection Convention, hosted by the United Nations’ Food and Agriculture Organisation (FAO).

"The key findings of this review should alert all of us on how climate change may affect how infectious, distributed and severe pests can become around the world," the FAO director-general Qu Dongyu said.

The FAO estimates that annually up to 40% of global crop production is lost to pests.

By the end of April, Namibia was struggling to contain the third wave of an African migratory red locust outbreak, which had already destroyed 719 000 hectares of grazing land and 1 207 hectares of crop fields in 10 of the country's 14 regions.

Some pests, like the fall armyworm which feeds on a growing number of crops - including maize, sorghum, millet - and fruit flies, which damage fruit and other crops, have already spread due to the warmer climate.

“Others, such as the desert locust, the world's most destructive migratory pest, are expected to change their migratory routes and geographical distribution because of climate change,” according to the scientific review.

Time-consuming and expensive

The review analysed 15 plant pests that have spread or may spread due to climate change.

It stressed that pests are often impossible to eradicate once they have established themselves in a new territory, and managing them is time-consuming and expensive.

It added that climate change-induced pest dispersal and intensity threaten food security as a whole. Small holders, people whose livelihoods rely on plant health and those who live in countries beset by food insecurity are especially vulnerable to these risks.

Invasive pests are also one of the main drivers of biodiversity loss.

The review put forward a number of recommendations to mitigate the impact of climate change on plant health.

Chief among them is increased international cooperation, which is deemed crucial as the effective management of plant pests by one farmer or one country affects the success of others.

The review also stressed the need for more research into the impact of climate change on pests and on plant health, and for more investments in strengthening national phytosanitary systems and structures.
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Fishermen demonstrate over ‘misunderstandings’

June 2, 2021, 3:00 pm
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Fishermen demonstrate over ‘misunderstandings’ Fishermen demonstrate over ‘misunderstandings’ LEANDREA LOUW



Walvis Bay

leandrea@republikein.com.na

Cavema Fishing refuted claims made against it as “misunderstandings” after almost 700 fishermen demonstrated and handed over a petition to the management of the company in Walvis Bay on Monday.

Under the auspices of the Affirmative Repositioning (AR) movement, the fishermen demanded answers to why they only received fixed-term contracts and a salary of N$3 970 with no benefits.

The AR leadership and Cavema management met on Tuesday to iron out these issues.

Cavema director Robert Shimooshili expressed disappointment in how AR handled the matter.

“They never extended an invitation to discuss it first. Cavema was one of the first ventures, if not the first one, to heed the call of government in securing employment for the affected workers of the 2015 strike. We have employed more than the allocated 645 employees and all of them have agreed and signed their employment contracts,” he said.

Quota allocation

Shimooshili said that a 5 600-metric tonne (MT) freezer horse mackerel quota was made to Camposatu Investments as recommended by Cavema, and 1 792 MT of freezer hake went to Rainbow Fishing Co. “However, Vernier Investments was allocated 6 330 MT of freezer horse mackerel – not hake. Additionally, Rainbow Fishing was allocated only 500 MT of wet hake, not freezer hake.”

He added that the employment of the 645 fishermen is explicitly connected and conditional to the allocation of quota.

“Such quota allocation is done on an annual basis for the duration of the season. The fixed-term contracts clearly state that employment is automatically extended for another year if the quota is allocated according to the designation agreement. “The contract and the pay slips clearly state that the employee receives a basic salary of N$3 300, a housing allowance N$500 and transport allowance N$200. The above conditions were confirmed in our correspondence with the various government institutions,” he said.

According to Shimooshili, an immediate meeting was set up in the spirit of cooperation.

“The [AR] statement is incorrect with regards to the workers’ remuneration as it includes various benefits. We do not prohibit anyone who wishes to go to sea or find alternative employment.”

He added that openings will be filled when available with skilled and trained workers. “We have assimilated a number of workers in such sea-going positions. We have also renewed the safety training certification of about 50% of the fishermen, with another 50% to follow such training as an ongoing initiative to make them ready for the related job.

‘Back to the drawing board’

Meanwhile, AR Walvis Bay spokesperson Knowledge Ipinge said their mandate is to fight for the fishermen to be permanently employed.

“The demonstration is just one pillar of action from the AR as mandated by the fishermen. We have established that the fixed-term contracts are only valid as per the quota allocation of 12 months. On that basis, we will seek justice and permanent employment for the affected. The committee will be going back to the drawing board and the masses on the ground, and then determine the way forward. We will consult with the company.”
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COMPANY NEWS IN BRIEF

June 2, 2021, 3:00 pm
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COMPANY NEWS IN BRIEFCOMPANY NEWS IN BRIEF Discovery to be called Warner Bros

Discovery Inc said on Tuesday that the recently announced global entertainment and media business created with Discovery and WarnerMedia assets will be named Warner Bros.

Discovery Chief Executive David Zaslav made the announcement during a meeting with WarnerMedia employees at the Warner Bros studio lot in Burbank, Calif.

WarnerMedia Chief Executive Jason Kilar asked Zaslav questions, according to a source familiar with the meeting, in which Zaslav introduced himself and Discovery to WarnerMedia employees.

AT&T Inc and Discovery said in May that they would combine content from WarnerMedia including the Harry Potter and Batman franchises, news network CNN and sports programming - and Discovery's unscripted shows from lifestyle TV networks such as HGTV and TLC.

Discovery's Zaslav will lead Warner Bros. Discovery, which is expected to see US$3 billion in cost synergies with no plans to sell any assets. The deal is anticipated to close in mid-2022, pending approval by Discovery shareholders and regulatory approvals. - Nampa/Reuters

Vodafone gets 5G deal with Huawei

Vodafone's Italian unit has secured conditional approval from Rome to use equipment made by China's Huawei in its 5G radio access network, two sources close to the matter said.

Italy can block or impose tough conditions on deals involving non-EU vendors under "golden powers", which have been used three times since 2012 to block foreign interest in industries deemed to be of strategic importance.

The government of national unity led by Prime Minister Mario Draghi authorised the deal between Vodafone and Huawei on May 20, one of the two sources told Reuters, asking not to be named because of the sensitivity of the matter.

As in similar deals, the government imposed a set of prescriptions including restrictions on remote intervention by Huawei to fix technical glitches and an extremely high security threshold, the source added.

The United States has lobbied Italy and other European allies to avoid using Huawei equipment in their next generation telecoms networks and to closely scrutinize rival ZTE, saying the companies could pose a security risk. Huawei and ZTE strongly deny the allegations. - Nampa/Reuters

BHP says operations normal despite strike

BHP said operations at the world's largest copper mine Escondida and at the smaller Spence mine in Chile were normal on Tuesday despite a strike by a union representing remote workers.

The 200-member union, which runs BHP's Integrated Operations Centre in Santiago, walked off the job after failing to reach agreement with management on a labour contract following weeks of negotiations.

Global miner BHP subsequently called in substitute workers to keep the mine running, a move the union has contested with Chilean labour authorities.

"Spence and Escondida mines have informed that their operations are continuing normally," the company said in a brief statement.

The strike coincides with a spike in copper prices fuelled by soaring demand globally following more than a year of coronavirus pandemic-induced stagnation. The rising prices have given additional leverage to organized labour at Chile's sprawling copper mines. - Nampa/Reuters

BP invests US$220 million in US

BP on Tuesday boosted its investment in US renewables with a US$220 million purchase of solar projects from developer 7X Energy.

The deal, for assets with production capacity of 9 gigawatts, marks BP's first independent investment in solar since buying a stake in Europe's largest solar developer, Lightsource, in 2017.

BP CEO Bernard Looney last year launched a strategy to sharply reduce carbon emissions by 2050 by reducing oil output and growing its renewables business 20-fold between 2019 and 2030 to a capacity of 50 gigawatts (GW).

The deal will grow BP's renewables pipeline from 14GW to 23GW. The company expects to start developing around 2.2 GW of the acquisition's pipeline by 2025.

BP will integrate the new solar output into its large US power trading business, which includes onshore wind and natural gas electricity. In future, it will also have offshore wind from a project it is developing off the East Coast with Norway's Equinor, Dev Sanyal, BP head of gas and low carbon energy, told Reuters. - Nampa/Reuters

Nestle under fire over unhealthy products

Nestle said on Monday it was working on updating its nutrition and health strategy after the Financial Times reported an internal document at the food giant described a large portion of its food and drinks as unhealthy.

The newspaper said it had seen an internal presentation circulated among top executives early this year stating that more than 60% of Nestle's mainstream food and drinks portfolio could not be considered healthy under a "recognised definition of health".

The paper said this assessment applied to about half of Nestle's overall portfolio because categories like medical nutrition, pet food, coffee and infant formula were excluded from the analysis.

Kepler Cheuvreux analyst Jon Cox said that including these categories would significantly reduce the proportion of products potentially considered unhealthy.

"Given the group’s confectionery, ice cream, and pizza businesses, the real figure for the group based on 2021 estimates would be 28%, which is hardly a surprise," he said in a note. He said the report could point to changes in the product portfolio, notably an exit from mainstream confectionary. - Nampa/Reuters
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NDF ill-discipline must be dealt with swiftly

June 2, 2021, 3:00 pm
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NDF ill-discipline must be dealt with swiftly NDF ill-discipline must be dealt with swiftly Armed forces undergoing series of shifts Geingob said while funding may not be ideal, the NDF is “required to do more with less and become innovative in [its] endeavours to fulfil [its] roles”. ELLANIE SMIT







WINDHOEK

President Hage Geingob, commander in chief of the Namibian Defence Force (NDF), said ill-discipline, mistreatment of civilians and unpatriotic behaviour by members of the NDF should be dealt with swiftly by the Defence Force High Command.

Geingob’s speech was read on his behalf at the defence force’s 31st anniversary celebrated at Grootfontein under the theme ‘conquering challenges, harnessing readiness’. He said this type of behaviour should not feature among NDF members.

He said the NDF must overcome its internal and external challenges while maintaining vigilance and operational preparedness and fulfilling the role of safeguarding Namibia’s independence.

“We are all aware that the era which witnessed the formation of the NDF is a far cry from the era in which we find ourselves in today. The end of the bipolar world, coupled with the simultaneous rise of developing nations and edging towards unilateralism by some state actors, is negatively impacting the international consensus of world peace.”

Geingob said in this regard, there is an increase in regional conflicts, whose nature, character and tone are different from conventional warfare, thereby posing new challenges to conventional armies.

Profound shifts

For this reason, armed forces around the world are undergoing a series of profound shifts in their core roles, Geingob said.

“I am aware that new roles and responsibilities create opportunities for the NDF to extend its role and enhance the competencies of its personnel. I am also aware that these new roles create new demands which require funding, training and retooling.”

He said his discussions with the NDF command have brought to his attention the fact that the evolving security environment and the emergence of new roles in line with a changing world require the acquisition of appropriate defence capabilities for the modernisation of the NDF.

“Government will continue to support the NDF in carrying out its important and crucial mandate of protecting the nation and securing its territorial integrity.”

He said given the challenging circumstances resulting from the Covid-19 pandemic, the NDF received an allocation of N$5.4 billion or 9.1% of the total budget for the 2021/2022 financial year.

“Although this may not be ideal, we are all aware that in these times nothing is ideal. However, we are required to do more with less and become innovative in our endeavours to fulfil our roles.”

Transformation

Geingob added that they should be smart and goal-oriented in the use of limited funds to further transform the NDF into a truly representative institution of the national ethos of inclusivity, unity, freedom and patriotism.

“It is very important that the NDF must be seen as an all-embracing national institution which reflects the values of the Namibian state, and to whom all Namibians - regardless of region, tribe or political affiliation - are beholden as a national sanctuary of safety and security.”

He said the changing role of the army in times of peace does not mean that there are less or no challenges posing risks to the safety and security of the Namibian state and its citizens.

“It only means that such challenges and risks have become more sophisticated and camouflaged in appearance, location and modus operandi.”

The president further commended the NDF for the assistance they have rendered civil authorities in crime prevention activities.
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Namibians would rather pray than be vaccinated

June 2, 2021, 3:00 pm
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Namibians would rather pray than be vaccinated Namibians would rather pray than be vaccinated JEMIMA BEUKES



WINDHOEK

Almost all Namibians are worried about the impact of the Covid-19 pandemic on their households and the future of their children, the latest Afrobarometer report shows.

However, at the same time, two-thirds of Namibians are worried about the safety of Covid-19 vaccinations and would rather rely on prayer than taking the jab for protection.

“Half of Namibians say they are unlikely to try to get vaccinated even if the government says the vaccine is safe. More than three out of four citizens report that they are worried that companies that make Covid-19 vaccines will try to test them on ordinary Namibians, even if they have not been proven to be safe. Close to two-thirds (63%) of Namibians believe that prayer is more effective than vaccine would be in preventing Covid-19 infection,” the report said.

Health minister Dr Kalumbi Shangula this week told spiritual and church leaders that it is their duty to dispel doubts about the safety and effectiveness of the vaccines, particularly on social media.

Shangula addressed leaders at a consultative meeting on the vaccines.

“I urge all community leaders - spiritual leaders as well as elected and traditional leaders - to spread the correct messages about the vaccination campaign as have been established through proper medical and scientific procedures which the health ministry strictly follows. As we continue to state, our national Covid-19 preparedness and response is informed by science and we will never do anything to cause harm to the Namibian people,” he said.

Sing from same book

World Health Organisation (WHO) representative Dr Charles Sagoe-Moses said the opinions and examples of religious leaders carry a lot weight.

He added that the pandemic affects everyone so the religious community and government must sing from the same song book in order to address disinformation and misinformation with relevant scientific information.

“We need the support of the religious community to partner with government to help promote the uptake of the Covid-19 vaccine as a life-saving measure for oneself and loved ones.

“In addition, I would like to call upon the church and other religious groups to help implement the basic preventive public health measures that can make a difference to our health system and society as a whole.”

jemima@namibiansun.com
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Extortion suspect shot while trying to pull out toy gun

June 2, 2021, 3:00 pm
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Extortion suspect shot while trying to pull out toy gunExtortion suspect shot while trying to pull out toy gun ELLANIE SMIT



WINDHOEK

Two suspects were caught by the Erongo police during a covert police operation after one impersonated a police officer to extort money from a 78-year-old doctor on several occasions.

The incident happened on Monday evening at Woerman Brock Hyper in Swakopmund when one of the suspects was shot by the police after pulling trying out to pull out a toy gun.

The money extorted from the doctor was under the pretence to get his son out of police custody after being arrested in March for the possession of stolen goods in Mondesa.

According to Erongo community affairs commander, Inspector Ileni Shapumba, the police received a complaint from the doctor regarding text messages he had been receiving from a man who identified himself as a certain Constable Swartbooi.

It is alleged that the suspect made the doctor believe that he had spoken to a public prosecutor in Erongo who wanted N$5 000 to have his son released on bail.

According to Shapumba, the suspect arranged for a meeting between himself and the doctor at Puma Service Station in Kuisebmund where the doctor paid N$550 to start the process.

Shapumba said on a different day, the suspect arranged for another meeting at an FNB in Mondesa for the doctor to pay N$5 500.

“At this point, the doctor withdrew N$8 000 and gave N$5 500 to the suspect, who then grabbed the remaining amount from the doctor.”

New phone

Again on a different occasion, the suspect apparently extorted the doctor by requesting for a new cellphone, Shapumba said.

He added that the suspect promised to get rid of the docket in which the doctor's son was charged. In this regard, the alleged public prosecutor apparently requested to be paid another N$5 000.

“It was at this point that the doctor reported the matter to the police.”

Shapumba said the police responded swiftly through an organised and undercover operation. Two suspects were caught in action receiving money from the doctor.

“Upon noticing the police, one of the two suspects pulled out a knife to stab the officer who approached him. It is also alleged that in the same process of resisting arrest, the suspect continued to pull out his T-shirt to show that he was armed with a gun. Hence, the police officer shot the suspect in his right thigh.”

It was later discovered that the suspect pulled out toy gun.

Scams

The injured suspect was taken to Swakopmund State Hospital in a stable condition. He is under police guard.

A case of attempted murder was opened against the police officer for investigation.

“It appears that the criminals have seen a gap in detecting scams among our communities and people are buying into dishonest suggestions.

“In most cases, people are conned to buy employment, driving licences and even police dockets by scammers. These are not safe or honest practices and, therefore, not legal processes,” Shapumba said.

He also stressed that bail money in an amount authorised by the court is to be paid at court during working hours or at a police station where a person should be given a proof of payment to that effect.
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Covid grips State House as three die

June 2, 2021, 3:00 pm
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Covid grips State House as three dieCovid grips State House as three diePresident ‘fully recovered’ but isolating Among measures put in place to mitigate chances of infection at State House, which employs some 300 people, is a staff rotation system. STAFF REPORTER







WINDHOEK

Three State House employees died from Covid-19 in the past 30 days, after a total of eight tested positive for the virus.

Presidential spokesperson Dr Alfredo Hengari confirmed this yesterday, saying the office continues to observe Covid-19 protocols as laid out by health authorities.

On Tuesday, State House’s deputy director for the division of household services Hilde Petrus-Sakala died from the virus.

A fortnight ago, another employee from the maintenance division in the presidency died. It is not clear who the third employee was. State House has about 300 employees in total.

Namibian Sun understands that among the sick employees, one is admitted to an intensive care unit (UCI), while another required admission but this could not happen because “hospitals are full”.

Hengari said among measures put in place to mitigate chances of infection is a staff rotation system, which allows some to work from home as part of efforts to decongest the office and create distances between colleagues.

President ‘fully recovered’

Meanwhile, President Hage Geingob and First Lady Monica Geingob were confirmed to have been infected by the virus recently.

Hengari yesterday said Geingob has “fully recovered” from the virus but remains in isolation as per Covid-19 health protocols.

“The president has been cleared by his doctor and has fully recovered,” Hengari told Namibian Sun.
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Mother sues police for N$1.6m for son’s death

June 2, 2021, 3:00 pm
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Mother sues police for N$1.6m for son’s deathMother sues police for N$1.6m for son’s death MARC SPRINGER



WINDHOEK

A mother whose son was shot and killed by a police officer during the controversial Operation Kalahari Desert has instituted legal proceedings against government, claiming constitutional damages of N$1.6 million.

Her civil suit - directed against government, the home affairs minister as well as police officer Mulele Darrel Nyambe - was triggered by an incident which occurred on 5 September 2019.

According to the plaintiff Inge Shimoneni, joint security personnel of the Namibian Defence Force (NDF) and Namibian police conducted a raid on a property at Smarties location in Single Quarters, Katutura, on that day between 10h00 and 11h00.

In her particulars of claim, she stated that her son Benisius Kalola witnessed the raid, took out his cellphone and began to record the event, when an unknown member of the security forces noticed him doing so.

Shortly afterwards, several members involved in the operation approached Kalola and demanded that he hand over his phone.

According to Shimoneni, Kalola started running away and was chased by security personnel, amongst them an NDF member later identified as Nyambe, who fired a single shot with his AK-47 rifle, hitting her son in the left abdomen and fatally wounding him.

She said the officers then took possession of her son’s phone, thereby conducting an unlawful search and seizure of the deceased’s property.

Emotional shock and trauma

According to Shimoneni, her son’s shooting caused her and his two minor children significant pain, suffering, trauma and loss and resulted in the loss of support he used to provide.

She is claiming damages of N$1.6 million, made up of N$500 000 for emotional shock and trauma, loss of support to the tune of N$1 million as well as N$100 000 for loss of amenities and funeral expenses.

In their plea, the respondents admitted to the incident but emphasised that members of the NDF were at the time undertaking a legal crime prevention operation, which involved a lawful raid on a house suspected of being used in illegal drug operations.

They further submitted that the deceased started running away when he was noticed recording the raid by security officers who were thus deprived of the opportunity to question him.

The respondents denied confiscating Kalola’s phone, and said his shooting was a result of an “oversight of the individual member”.

The case - being heard by judge Orben Sibeya - was on Tuesday postponed to 29 June to grant the parties one more opportunity to approach the meditation office and obtain suitable dates for settlement negotiations. Shimoneni is represented by Sharen Zenda from the Legal Assistance Centre, while Mkhululi Khupe is acting for respondents.
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Angola yet to commit to 2007 extradition treaty

June 2, 2021, 3:00 pm
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Angola yet to commit to 2007 extradition treaty Angola yet to commit to 2007 extradition treaty Kenya Kambowe



RUNDU

While Namibia has ratified an extradition treaty agreement with Angola, its counterpart is yet to indicate that it has done so.

The agreement will bring an end to suspected criminals fleeing Namibia through the porous border to evade the wrath of the law, and will cut down on the long period victims have to wait for justice to prevail.

Namibian Sun this week established that the treaty between the two countries was signed around 2007 and ratified in Namibia in 2009. This was confirmed by the justice ministry.

“Namibia and Angola have signed a treaty on extradition. Namibia has ratified the said agreement. Angola is yet to indicate to Namibia whether they have ratified the said treaty,” the ministry said.

The justice ministry, however, indicated that in the absence of Angola’s ratification, the countries can make use of the SADC protocol on extradition.

Families in the dark

Amid Angola’s sluggishness, victims’ families remain in the dark after suspects flee to that country.

One such case took place on 16 August 2019 at Sikali village in the Kavango West Region where a man, who is an Angolan national, allegedly hacked his 23-year-old Namibian girlfriend, Naimi Ngambo Kalenga, to death with an axe.

The suspect fled the scene and managed to cross the border into Angola where he was arrested, the police confirmed at the time.

It is suspected that he crossed into Angola through the Okavango River, which borders the two countries.

Ever since, the victim’s poverty-stricken family has been hoping that justice will be served for their loved one, who was the breadwinner.

Kalenga’s mother now has to take care of the three children born out of the fateful relationship, and feeds them with meagre funds she gets from the state in the form of a social grant.

The family remains in the dark about the case. They told Namibian Sun all they were told in 2019 is that the suspect was arrested in Angola, and nothing has changed since then.

In a series of articles since 2019, Namibian Sun quoted Police Chief, Inspector General Sebastian Ndeitunga, as saying the suspect’s process of extradition has commenced; however, he was not certain at the time whether an extradition treaty existed between Namibia and Angola.

kenya@namibiansun.com
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