Oil exploration company, Red Soil Energy and Mineral Exploration, has accused the mines ministry of illegally declining its application to favour “politically connected people”. For this, the company dragged mines and energy minister, Tom Alweendo, to court along with the National Petroleum Corporation of Namibia (Namcor) and Indigenous Energy over Alweendo’s decision to decline their application for a petroleum exploration licence over Block 2512A and a portion of Block 2612A. The applications were submitted during January and March 2021.
In court documents, Red Soil Energy and Mineral Exploration’s managing director, Kaura Kaura, alleges he was informed by the petroleum commissioner, Maggy Shino, in a recorded conversation, that he must apply for other blocks as the ones he applied for have been reserved for “politically connected people”.
He claims to have refused the suggestion as he deemed it to be improper. However, a formal letter from the ministry indicates the company did not meet specific application requirements and failed to demonstrate its technical and financial capability to carry out exploration operations.
“There is no rule of policy or guideline of the first respondent (ministry) that demands that an otherwise compliant application must be withdrawn because politically connected people deserve the blocks for which the applicant has applied,” said Kaura.
He further charged that the ministry’s conduct constitutes to gratification of politically connected individuals with an element of corruption.
Kaura further asked for the minister’s decision to decline to be reviewed.
During oral arguments yesterday in the Windhoek High Court before Judge Essi Schimming-Chase, the company’s lawyer Patrick Kauta, said there is suspicion of bias as there is no evidence on how the minister, who had no technical guidance, evaluated the application.
Kaura remained adamant that the conversation between himself and Shino, where he was advised to withdraw his application, is clear evidence of ongoing bias. According to Kauta, the reasons furnished by the minister for declining the application do not make sense.
“The applicant’s set of technical capabilities were near identical to those of the previous licence holder – and it cannot be justified why the same technical capabilities were sufficient in one application, which was successful, but do not pass in our application,” said Kauta. He further noted the exploration company provided a budget to support its financial capabilities.
Kauta asked the court to have the matter referred back to the deputy minister for consideration and for Kaura’s company to be afforded the opportunity to present financial and technical documents.
However, minister Alweendo’s lawyer, Freddy Kadhila, said the company has been treated fairly by the minister as it was given another opportunity to provide sufficient documents through the ministerial committee.
This, he said, is despite the fact the ministry publishes guidelines for members of the public to help them understand what is deemed important when applications for exploration licences are weighted against the requirements under the relevant legislation.
“The minister’s decision was lawfully valid as the applicant’s application did not indicate that it has technical staff or that it has a partner or consultant who will execute the proposed work programme,” Kadhila argued.
He said this failure on the company’s part demonstrated it did not have the technical capabilities to carry out exploration activities.
According to Kadhila, the application must be dismissed as the grounds for review were not substantiated and there is also no evidence of bias.
Alweendo in his replying affidavit said he performed his duties within the confines of the law. He said the company’s failure to provide the required documentation entitled him to refuse the application on the basis that it failed to satisfy the requirements.
The minister also rebuffed allegations that exploration blocks are reserved for politically connected individuals. He said the petroleum commissioner does not have the power to reserve the blocks for anyone. Alweendo added that the conversation between Kaura and Shino, which was recorded, does not prove bias as it only shows how the commissioner was encouraging him to try again after the application was declined.