Justicia Shipena
Independent Patriots for Change (IPC) Michael Mulunga warned that the Petroleum (Exploration and Production) Amendment Bill could drive Namibia into a “resource curse” if adopted in its current form.
A resource curse is when a country has valuable natural resources like oil but ends up worse off economically.
He was speaking in parliament when the House resumed debate on the proposed law this week.
The bill proposes shifting authority over the oil and gas sector from the minister of industries, mines and energy to the Presidency.
It would give the President powers to grant, renew or revoke oil and gas licences and formalise the Upstream Petroleum Unit within the Office of the President.
Mulunga said the bill concentrates too much power in one office and removes checks and balances that protect public resources.
He said the proposed system combines policy, regulation and commercial functions under the Presidency, which could weaken accountability.
Mulunga questioned whether the bill is a necessary reform or a system that risks turning Namibia into a “resource curse” case, arguing that it relies too heavily on individuals instead of strong institutions.
He also raised concern about the appointment of a director-general directly by the President without independent oversight.
He said this could undermine institutional independence and reduce transparency.
Mulunga warned that the bill could create legal uncertainty and affect investor confidence.
He stated that investors favour stable systems, where a single authority does not control the rules, as policy changes could vary with leadership.
He said placing full control of policy, regulation and commercial decisions under one office could allow poor decisions to go unchecked, including risks related to safety and environmental standards.
He added that other countries separate these roles to strengthen governance, while Namibia’s approach moves in the opposite direction.
IPC’s shadow minister of finance and member of parliament Michael Mwashindange said the law could create fiscal risks and weaken oversight.
He said the executive would have broad discretion over fiscal terms, cost recovery and state participation, which could create uncertainty in how revenues are generated and managed.
“We cannot responsibly budget for education, health, employment creation for our youth and infrastructure on the basis of revenues that are legally unsolidified and politically negotiable,” he said.
Mwashindange said the bill increases the state’s exposure to financial risks such as price fluctuations and operational challenges without clear safeguards.
He also criticised the lack of transparency measures, noting the absence of clear requirements for parliamentary scrutiny, independent audits and public disclosure of contracts.
“In a sector globally associated with rent-seeking and elite capture, silence on transparency is not neutrality; it is vulnerability,” he said.
He questioned the urgency of the bill and said it does not clearly provide for job creation or direct benefits for young people.
Meanwhile, Swapo member of parliament Filipe Elder said oil and gas resources are strategic national assets that fall under the President’s executive authority.
He said placing oversight at the highest level would strengthen decision-making and align the sector with national development goals.
Another Swapo member of parliament, Clemencia Coetzee, said the legislation prepares Namibia for its emerging oil and gas sector.
Under the bill, senior officials in the Upstream Petroleum Unit would be barred from holding financial interests in licence-holding companies. Violations could result in a fine of up to N$20 000 or imprisonment of up to five years.
The director general and deputy director general would be required to declare their assets, liabilities and business interests to the President after appointment and when required.
Swapo’s Martha Itope also backed the bill, saying it reflects the growing importance of the petroleum sector and strengthens governance.
She said the framework improves coordination, supports transparency and promotes sustainable development.
Itope called for inclusive implementation and urged that women be given greater opportunities in leadership and technical roles within the sector.
