Justicia Shipena
A proposed fine of up to N$20 000 for officials who breach conflict of interest rules in the petroleum sector is too low for an industry worth billions, Independent Patriots for Change (IPC) member of parliament Nelson Kalangula has told the National Assembly.
Debating the Petroleum (Exploration and Production) Amendment Bill on Wednesday, Kalangula said the penalty does not match the scale of the oil industry.
The bill bars senior officials in the Upstream Petroleum Unit from holding financial interests in licence-holding companies, with penalties of up to N$20 000 or imprisonment of up to five years for violations.
The director general and deputy director general must submit statements of their assets, liabilities and business interests to the President shortly after appointment and whenever required.
The Upstream Petroleum Unit is housed in the office of the President and was established by President Netumbo Nandi-Ndaitwah after taking office last year.
Kalangula questioned whether that amount is adequate for a sector expected to generate billions in revenue.
Data from the Ministry of Industries, Mines and Energy shows that Namibia’s offshore oil and gas reserves could bring in up to N$7.7 billion a year for the government through royalties and taxes.
The bill also proposes a shift of authority over the oil and gas sector from the minister of industries, mines and energy to the Presidency.
The changes would give the President powers to grant, renew or revoke oil and gas licences.
Kalangula described this as a “shift of power” from a minister accountable to Parliament to officials who are not members of Parliament.
He said placing the unit under the Office of the President may bypass ministerial accountability under Article 41 of the Constitution.
He asked who Parliament would question if decisions are taken outside the traditional ministerial structure.
Kalangula contended that the bill introduces duplication by establishing new positions which lack direct accountability to Parliament.
He said while the bill attempts to address issues related to data management and fiscal transparency, it does not provide clear accountability to Parliament.
This week IPC president Panduleni Itula rejected the bill. Itula urged Parliament to consider a vote of no confidence against Nandi-Ndaitwah over the oil bill, saying the issue was serious enough to challenge her leadership.
Oil control for elected officials
Also in yesterday’s debate of the bill, Landless People’s Movement (LPM) member of parliament Eneas Emvula also rejected the bill. He warned that it could weaken accountability and create legal risks.
“We are, however, not in agreement on the matter of amending the law to allow a sitting president to take charge of natural resources,” he said.
Emvula also warned that validating past approvals under the new act could prevent courts or regulators from reviewing earlier non-compliance.
Emvula said the creation of the Upstream Petroleum Unit removes checks and balances from line ministries.
“This amendment bill does by far not safeguard, nor does it ensure accountability, and it is our informed opinion that should this August House endorse the bill in its current form, such a move will cause a constitutional crisis,” he said.
“Do you know that a minister in Namibia under the Constitution might be a member of the National Assembly? Point number one,” Popular Democratic Movement (PDM) leader McHenry Venaani said.
He criticised what he described as handing power to individuals who were not elected through party processes.
“Now we are empowering my dear friend Shilunga, who was a deputy minister, who failed to become a minister, and didn’t get elected in the electoral college. Now you are telling us that the power held by an elected person must be given to someone who is not elected, and that is the person we want to protect—the interests of this country,” Venaani said.
He argued that authority over strategic resources such as oil should remain with leaders who carry a direct electoral mandate and are accountable to Parliament.
Although, opposition parties have rejected the bill. Swapo members of parliament have come in to support the bill.
Swapo MP calls bill a step forward
Swapo member of parliament Modestus Atshipara defended the bill, saying it provides a framework to manage Namibia’s oil discoveries in a way that promotes growth and accountability.
He said the oil and gas sector presents a major opportunity for the country.
“This framework ensures transparency, accountability and efficiency in managing Namibia’s oil resources effectively, mitigating the risk of corrupt practices in the industry,” he said.
Atshipara argued that centralised oversight under the Office of the President would help Namibia respond quickly to global market changes.
“By passing this amendment, we ensure that Namibia maximises its resource wealth for inclusive and lasting economic transformation,” Atshipara said.
Namibia is estimated to have about 11 billion barrels of oil and 2.2 trillion cubic feet of gas.
