The Bank of Namibia (BoN) board cleared their governor, Johannes !Gawaxab, during a special meeting to deliberate on the out-of-court settlement between the governor and the Namibia Competition Commission (NaCC).
The board concluded, after seeking legal opinion, that !Gawaxab did not transgress the Bank of Namibia Act, and there are no obvious legal implications for the Bank concerning the governor’s business conduct.
The BoN board of directors convened the special meeting to fully assess the recent matter that made headlines throughout the country, with some calling for the governor to resign due to an alleged conflict of interest and unlawful conduct.
The board (excluding the executive members) last week stated there is at present no obvious legal implication from the governor’s conduct.
“The Bank remains focused on its mission, with governor !Gawaxab’s leadership playing a crucial role in navigating challenges and steering the bank to continue to deliver on all aspects of its entrusted constitutional mandate,” read a BoN statement issued on Friday.
Last month, the NaCC imposed a N$1 million fine on !Gawaxab, as well as business associate Ismael Gei-Khoibeb and Gamma Investments for implementing a merger without the Commission’s approval.
The NaCC’s intervention followed allegations that !Gawaxab sold businesses and shareholdings in a major insurance company without approval.
Following an investigation, NaCC spokesperson Dina //Gowases explained !Gawaxab and others entered into a settlement agreement for implementing a merger without the approval of the Commission.
This action contravened the Competition Act of 2003.
“To that end, the parties admitted to the
Commission that on 10 June 2020, !Gawaxab sold his member’s interest in Gamma to Gei-Khoibeb in contravention of the Act. The parties have also admitted the transaction amounted to a merger in contravention of the Act, and without the prior approval of the Commission,” //Gowases stated.
A statement from Eljota Investments stressed that !Gawaxab took proactive steps to divest his interests, including in EOS Capital, to prevent any potential conflicts of interest upon his appointment as BoN governor.
Eljota Investments said the urgency of
!Gawaxab’s appointment did not allow for the completion of standard valuation processes,
including notifying the NaCC about the share sale, “due to the complex and time-consuming nature of the procedure”.