Political commentators have called on lawmakers to close potential loopholes within the legal framework that allows for state-owned enterprises (SOEs) to make donations to political parties.
This comes at a time when local lawyer Sisa Namandje, in his leaked affidavit to the Anti-Corruption Commission (ACC), indicated between 2015 and 2017, his law firm Sisa Namandje & Co received and processed payments amounting to N$23 million from funds currently at the heart of investigations into the Fishrot scandal.
Of that money, N$17 million was reportedly transferred from the National Fishing Corporation (Fishcor). A private fishing company Mermaria Seafood Namibia (Pty) Ltd also made a payment of N$5 million.
In August 2017, Fishcor made a payment of N$2.5 million to Swapo, the ACC has been told in an affidavit disposed of last year.
Swapo’s Oshikoto coordinator Armas Amukwiyu and businessman Vaino Nghipondoka allegedly received N$15 million from Fishcor in 2015. Namandje revealed at least N$7.5 million of the processed funds that went through his firm’s trust account was meant to fund Swapo’s 2017 congress activities.
“I would not have had reason to doubt that internal procedures were followed. Over the years, I have witnessed some public companies (parastatals) publicly making donation pledges at Swapo events,” said Namandje in his defence.
“Under section 10 of the Fishcor Act, its affairs are reported to the minister and National Assembly. Such a payment would thus be something that Fishcor would have transparently and publicly reported on in terms of its Constitutive Act.”
Swapo last year denied ever receiving funds from Fishcor.
Approached for comment, political commentator Ndumba Kamwanyah is of the view public funds are not meant for political parties and their activities.
“State-owned enterprises are funded by government and that money is not meant to fund political parties because within our constitution, we do have an existing formula on how to fund political parties with public money – and that is based on the number of parliament seats that a party has obtained by participating in an election,” explained Kamwanyah.
He urged lawmakers to work on closing legal loopholes that allow for such exploitation.
Executive Director of the Institute for Public Policy Research (IPPR) Graham Hopwood said it is unethical for SOEs to offer donations to political parties.
He implored the Ministry of Public Enterprises to seek ways to ban such donations.
“This situation with Fishcor donating to Swapo has arisen because there has been so much political interference in SOEs over the years. The boards and management of SOEs should face sanction if they give away the company’s money like this,” said Hopwood.
Approached for comment on the issue, public enterprises minister Leon Jooste briefly said SOEs are required to submit annual business plans and budgets that must be approved by the shareholder.
“Donations (if any) should be budgeted for and may be queried by the shareholder if the need arises. Public enterprises are legally bound to adhere to the approved business plans and budgets,” explained Jooste.
Fishcor’s transactions form part of the ongoing investigations in which former ministers Bernhard Esau and Sacky Shanghala, Tamson ‘Fitty’ Hatuikulipi, James Hatuikulipi, Ricardo Gustavo, Mike Nghipunya, Pius Mwatelulo, Phillipus Mwapopi and Otniel Shuundifonya have been arrested and face charges of fraud, bribery, corruptly using office for gratification, money laundering and conspiring to commit corruption in connection with N$75.6 million that was siphoned out of the company.
In this case, the accused are expected to appear for pre-trial in the High Court on 22 April.
Some of the accused, including Ricardo Gustavo, are also facing additional charges ranging from fraud to bribery, corruptly using office for gratification, money laundering and conspiring to commit corruption.
These charges emanate from allegations that an Icelandic fishing company Samherji reportedly secured access to horse mackerel quotas in Namibia by paying bribes of around N$130 million to politicians and businessmen between 2012 and 2018.
In this matter, ACC is yet to complete investigations and the accused are expected to return to Windhoek Magistrate’s Court on 5 February for the prosecutor general’s decision.
- mamakali@nepc.com.na