PDM joins chorus against investment bill

THE Popular Democratic Movement (PDM) has rejected the proposed investment promotion and facilitation bill (IPFB), they said in a statement yesterday.

This is despite the bill having been withdrawn from the National Assembly last month.

Party leader McHenry Venaani said in a statement that the PDM “vehemently and indisputably” rejected the proposed IPFB.

He said it comes as no surprise that the trade minister, Lucia Iipumbu, attempted to “sneak the bill into parliament and use the tyranny of numbers that the ruling party possesses to, at the eleventh hour, pass a controversial and highly disputed bill.”

Venaani said the bill manifestly defies the principles of an open and free market economy and directly opposes the proposition of an egalitarian society, which the PDM champions.

“In its very nature, the bill is repressive, absolutist and centralises power in the hands of the minister of trade. It effectively gives the minister inexhaustible powers to decide not only who may invest, who is authorised to partner with investors, but also on which conditions said investments may advance and whether or not these investments may be repatriated,” Venaani added.

He said the bill clearly violates the constitutional protection outlined in Article 21 (1) (j) of the Namibian Constitution which states: “All persons shall have the right to practise any profession or carry on any occupation, trade or business.”

“As a young constitutional democracy, this republic ought to strive to always uphold the ideals of the Constitution. Instead, this proposed lacklustre and flimsy bill directly opposes that,” Venaani noted.

Additionally, PDM said the bill severely waters down the powers and functions of the Namibia Investment and Promotion Development Board (NIPDB) and reduces it to a toothless ‘yes-man’, compelled to agree with the autocratic resolutions taken by the trade minister.

PDM said that these concerns have similarly been shared by the CEO of the NIPDB, Nangula Uaandja, who flagged the fact that the NIPDB was offered no independence under this bill.

This is despite a comparative analysis of investment laws, for example in Asean countries, clearly illustrating that investment promotion agencies require independence in order to foster a conducive and attractive investment environment.

“Particularly of concern is the fact that the IPFB gives the minister the right to, in consultation with the chief of the Namibian Intelligence Service, direct and regulate investments ‘in a manner necessary to maintain security and international peace’,” said Venaani.

Not only does this bill regulate the fundamental parameters of the country’s ‘ramshackle investment’ and business environment, it also polices and militarises the business environment in which potential investors seek to operate, with heavy offences and penalties outlined for offenders within the bill.

“The PDM rejects the consideration of a bill which would effectively deter the much-needed investment in an already competitive international investment arena and entreats the trade ministry, in consultation with the necessary stakeholders, to not only review the bill holistically, but to also consider and implement the recommendations posed by the NIPDB where necessary,” Venaani added.

The bill was tabled by Iipumbu in the National Assembly a fortnight ago.