Final report for NEEEF in pipelineDraft bill to be submitted to PM soon A constitutional law expert hopes the “worrying” elements raised during the consultation process on the New Equitable Economic Empowerment Framework Bill have been dealt with. The permanent secretary in the prime minister''s office, Nangula Mbako, says the final report on the contentious New Equitable Economic Empowerment Framework (NEEEF) Bill is expected to be submitted to the prime minister soon.According to her a preliminary report was submitted to the prime minister shortly after the conclusion of public consultations across the country.
“We are now in the process of submitting the final report to the PM,” said Mbako.
Constitutional law expert Professor Nico Horn said he hopes the “worrying” elements raised during the consultation process have been dealt with.
The consultation process was handled by the Law Reform and Development Commission, led by its chairperson, Yvonne Dausab.
“I have a suspicion the final draft bill that the prime minister will table will be much improved from what we saw in the beginning. During the last consultation with the LRDC, Dausab was much more accommodating than before,” said Horn. The bill proposes a mandatory minimum requirement that white-owned private companies sell “at least” 25%, or a percentage determined by a minister, to previously disadvantaged persons (PDPs). Another mandatory requirement is that that 50% of such companies'' management must consist of PDPs and that the equivalent of 0.5% of a company''s gross wages must be spent on training employees.
Optional requirements are that businesses introduce entrepreneurship development, comply with corporate social responsibility requirements and add value through technology and innovation. Of the 120 written submissions made to the government, most were related to questions on the constitutionality of the bill.
Though Article 23(2) “allows for legislation to be passed, rectifying wrongs of the past”, it was put forward that articles 16 and 21 guarantee the right to property ownership and the right to freedom of association.
These specific requirements have caused quite a stir in the economic sector and white business owners proposed that it might not be the right instrument to address the inequities resulting from past discriminatory laws and practices.
During one of the consultative meetings Eben de Klerk of ISG Risk Services said the government has a duty to see to it that no law is in conflict with the Namibian constitution.
Horn also argued that some problematic elements in the bill need to be addressed before a final draft is tabled.
“I do not think anyone is against affirmative action or black economic empowerment but the question is, how it can be done without wrecking the economy?” Horn said.
JEMIMA BEUKES