TIRI MASAWI
The Independent Patriots for Change (IPC) says Namibia’s Oil and Gas Local Content Policy must be tightened to ensure ordinary Namibians benefit from the emerging industry and to prevent politically connected individuals from benefiting at their expense.
IPC shadow minister of international relations and trade Rodney Cloete said the policy should make beneficial ownership disclosure mandatory for companies and their local partners to strengthen transparency and guard against potential corruption.
The policy, currently under review by the Office of the President, is expected to shape how companies employ Namibians, buy from local businesses, transfer skills and technology, and create ownership and business opportunities as billions of dollars in oil and gas investment take shape.
Cloete’s call comes after Secretary to Cabinet Emilia Mkusa last week confirmed that Cabinet’s recommendations had been forwarded to the Upstream Unit in the President’s Office for a final determination.
Mkusa said President Netumbo Nandi-Ndaitwah wants the policy to balance the interests of Namibians, the country and investors.
“The President wants to make sure that the policy is not lopsided. She wants the document to be aligned in a way that caters fairly for the aspirations of Namibians and the country as well as investors. It is important that we adopt a balanced document that does not favour one side,” Mkusa told Namibia Business Review.
MANDATORY
Cloete said the policy needs to make it mandatory for companies to declare their shareholding in local partners.
“The language, the ownership thresholds, the reporting requirements, the beneficial ownership disclosures, and the unbundling of contracts all look progressive on paper,” he said.
“I strongly believe this is a document written by those at the top of the pyramid and their networks. It is not a document for the base of the pyramid,” Cloete said.
He said the current document does not make it easy for ordinary Namibians to participate in the industry.
According to Cloete, the oil and gas industry could create opportunities for politically connected and affluent Namibians at the expense of the poor.
“In practice they are areas the elite can dribble and are navigable primarily by people who already have lawyers, accountants, political access, and capital. Ordinary Namibians who want to enter the supply chain as real operators, not as name lenders, will find the barrier high and the rules opaque,” he said.
Cloete said while Cabinet endorsement of the policy is crucial, it still needs to be gazetted into law.
“Until it is gazetted, given teeth in legislation, and backed by independent monitoring with real penalties, it remains a statement of intent. Cabinet endorsement signals political priority and gives operators a clearer signal of what the state claims to want,” he said.
He said government should move forward with transparent policies, capacity building from the bottom up and measures to prevent the fronting of foreign interests by Namibians.
“We are still far too focused on the language of participation and far too light on the substance of capability, capital access, and industrial readiness. Skills pipelines, practical training tied to actual work packages, local fabrication and service capacity, and financing mechanisms that reach beyond the usual networks are underdeveloped,” he said.Cloete said policy alone does not position a population.
“Capability and capital do.”
“The industry will not wait for Namibia to get its house in order. Without deliberate, measurable investment in real Namibian competence, not just equity percentages and local content plans, the financial benefits will flow upward and outward,” he said.
Meanwhile, speaking at the Local Content Policy workshop on Monday, Petroleum Inspector Louise Hangero said the policy should give special attention to the development and meaningful participation of Namibians across the petroleum supply chain.
Hangero said the framework also seeks to ensure that the rules of the game are clear and consistently understood by all players in the industry.
The Institute for Public Policy Research (IPPR) told the validation workshop that action is needed to mitigate corruption risks.
IPPR said anti-corruption clauses in contracts must spell out the behaviour expected from contracting partners and send a strong signal regarding the government’s or company’s commitment to fighting corruption.
It called for dedicated and independent oversight bodies for the local content policy, including oversight of the selection of pre-approved local suppliers that can be vetted to ensure they have clean track records and are not linked to the politically connected.
“Procurement regulations in local content requirements should guarantee fairness throughout the procurement process and include measures to avoid overpricing, bid rigging, and cartel activity,” IPPR said.
IPPR said the disclosure of beneficial ownership is instrumental in ensuring that local content contracts are not awarded to political groups and that “front” companies are not used to circumvent local content requirements.
“Transparent reporting on local content covering the number of local personnel employed, goods and services procured by foreign and local companies, and beneficiaries of local content policies are essential to assess whether local content rules are implemented in a way that supports the achievement of their objectives and whether corruption, mismanagement or other wrongdoing took place,” IPPR said.
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