The National Planning Commission (NPC) Director General, Obeth Kandjoze, has criticised the International Monetary Fund (IMF), accusing the institution of double standards in its demands for increased transparency in Namibia’s oil and gas agreements.
Kandjoze emphasised that no foreign entity, including international organisations like the IMF, should have the authority to dictate transparency and disclosure policies to sovereign nations.
He highlighted the unfairness of imposing stringent disclosure requirements on third-world countries while allowing more powerful nations to evade similar scrutiny.
This comes as the IMF High-Level Summary Technical Assistance Report on Namibia’s Petroleum Fiscal Regime said fiscal transparency can be enhanced by publishing petroleum agreements while the costs and benefits of state participation should be considered.
“To ensure sustained benefits for its population, Namibia should preempt such challenges by adhering to the highest standards for transparency and governance. An immediate downpayment on this effort could be realised by making publicly available in an easily accessible manner all petroleum agreements concluded by the government,” the report noted.
Kandjoze argued that this selective transparency creates geopolitical imbalances, as seen in regions like the Middle East.
“In the policy space, as long as we adhere to a good government structure that addresses corrupt politicians, we can make progress. We have a framework against corruption. However, they still demand that third-world countries disclose their financial records while they fund their budgets, and not rely on external dollar funds for budgeted programmes,” he said at the Nedbank Corporate and Investment Banking Event on Tuesday.
Kandjoze underscored the importance of each nation maintaining control over its governance structures and anti-corruption measures, asserting that decisions about financial disclosures should be made independently by each country’s government.
“Why should any other sovereign entity dictate to us what to disclose or not disclose, especially when people initially formed governments internationally? This exercise remains solely in the hands of our government structure and should not be subject to the prescriptions of any foreign entity,” he said.
At the same event, following the IMF’s recent call for increased transparency in Namibia’s oil sector agreements, Ebson Uanguta, NAMCOR Interim Managing Director, emphasised the critical need for openness and accountability in the industry.
He highlighted the essential role of transparency in the oil and gas sector, stating: “In oil and gas, transparency is not just important but essential. All activities and potential risks must be disclosed promptly.”
Explaining the complexity of the agreements under scrutiny, he noted that there are two primary agreements at play.
“The petroleum agreement dictates the relationship between international operators and the Namibian government. Meanwhile, the joint operating agreement governs relationships among operators, including NAMCOR’s substantial interests in various discoveries,” he said.
He further emphasised the delicate balance required between transparency and confidentiality.
“We must find a middle ground. While certain confidential details need protection, critical information such as taxes, royalties, and economic benefits accruing to the government must be made public,” Uanguta said.
