Swapo parliamentarian John Likando, who is also the Kabbe South constituency councillor, says there is a need to reform the Namibia Stock Exchange to allow black Namibians to enter the mainstream economy.
Likando said for 30 years, black Namibians have been shut out of the securities industry, while lawmakers do not understand the operations of the local stock exchange.
“Even those formerly disadvantaged Namibians who find opportunity to penetrate hardly look back to invite fellow black Namibians to join the lucrative cake of the Namibian economy,” he said while contributing to the debate of the Financial Institutions and Market Bill 13 of 2018 in the National Council this week.
The Bill seeks to regulate insurance, financial markets, collective investments schemes, retirement funds, friendly societies and medical aid funds.
The Bill was brought before the National Council to find solutions to existing imbalances in the financial institutions’ industry and financial markets.
The purpose of the Bill is to consolidate and harmonise the laws regulating financial institutions, financial intermediaries and financial markets in Namibia, as well as to provide incidental matters for the proper exercise of the law at a policy implementation level.
The reviewing of laws is made to ensure lawmakers safeguard the social and economic welfare of all citizens by enacting legislations that protect the rights and privileges of ordinary Namibians.
Likando said both foreign and local investors have abused the piece of legislation.
“Over the last three decades, the country has witnessed the arrival and emerging flight-by-night investors, briefcase millionaires, commercial mercenaries, schemers, daylight mafias and crooks,” Likando noted. He added “scrupulous individuals” lived and conducted business in Namibia because it is one of the investment havens in Africa and the entire world.
“But as Namibian parliament continues to close existing loopholes by strengthening institutions and systems that have seen unscrupulous investors and businesspersons languishing in prisons and courts for crimes, they committed through false schemes, financial pyramids and unregulated insurance and investment schemes, which left many ordinary Namibians without a source of income, as they were lured to be overnight rich people,” he said.
Likando argued these schemes are still visible in the country through existing investment companies, insurance companies, cash loans, as well as forex traders conducting their businesses illegally. He said this pyramid has even extended the opening of unregistered and non-accredited institutions milking youth and their poor parents with a hope of gaining an accredited qualification.
Therefore, he maintained, the existing legislations and institutions need continuous reforms to curb the ongoing illegal flows, which continue to enjoy profits due to lesser penalties and non-punitive measures.
The Bill will require all insurance companies operating in Namibia to have firms of auditors as compulsory and have business valuators to ensure that business and invested funds are safely guarded.
The chapter 3 of Bill will further ensure that financial markets, particularly securities, which include shares, stock exchanges, bonds, notes, bitcoins and other defined in clause 78 of the Bill are well regulated.
– anakale@nepc.com.na