Import penalties irk Namibian firms

By: BRIGITTE WEIDLICH

IMPORT penalties slapped on Namibian companies for grain, fruit and vegetables from South Africa by a private SA company are being investigated by Government.

Agri Inspec, an SA company, is contracted by the Namibia Agronomic Board (NAB), Namibia Dairies and Namib Mills to do border control and monitoring services for import and export of agricultural goods falling under the three entities, and to implement professional forensic measures to detect corrupt practices. 

It entered into a deal with the three Namibian operators in August 2008.

Monetary penalties issued by the company have now come under scrutiny with some asking why the money should go to a private company, instead of Government or a government agency. The controversy around the legality of the penalties has now jolted the Government in seeking legal advice on the matter, and to ascertain where the penalty payments are going.

Truck drivers receive a special document titled ‘Notification of Transgression of Permit Regulations’ by Agri Inspec, a company based in Pretoria. This document  states the under-declaration of  the value and the weight of goods transported. 

Some of these documents were shown to The Namibian. Some penalties range between 50 and 100 South African rand per ton of under-declared cargo, plus 40 rand per hour of inspection, and 3,75 rand per kilometre travelled by an Agri Inspec official.

One penalty, charged on July 5 this year, was for 84 tons of yellow maize under-declared at Ariamsvlei border post  and imported by a local company. The import permit was for only 34 tons, but the truck carried 34,084 tonnes, and the company was fined N$50 per ton under-declared. 

This came to N$1 704,20, plus N$40 for one hour of inspection, and N$15 for four kilometres travelled -  N$1 759,20 in total.

Another penalty document seen by The Namibian was for N$3 300 for 33 tons of potatoes brought through Ariamsvlei and destined for Ondjiva in southern Angola on July 9 2009. This time N$100 per ton was charged as a penalty because the truck arrived at the Namibian border without a permit. Approached for comment, Christof Brock, the CEO of the NAB, yesterday said “we are taking legal advice and, until the outcome of that, there will be no discussion or a [media] statement.” Dissatisfied persons in the agricultural industry, who approached The Namibian, claim that the penalties imposed by Agri Inspec allegedly did not go to State coffers, that the Ministry of Agriculture was unaware of the penalty regime, and that border controls should rather be done by Namibian companies. Hennie Kleynhans, Managing Director of Agri Inspec yesterday denied the allegations. 

We have opened an office in Namibia in the NAB buildings and we registered Agri Inspec Namibia, and we opened a bank account in Namibia, from September 1 (yesterday),” Kleynhans told The Namibian telephonically from South Africa. 

“We employ 25 people permanently and another 30 people via [contracted] security companies in Namibia. It took us seven months to get the bank account set up.”

Asked about the penalties, as they were not mentioned in the 2008, agreement, Kleynhans said “there are few penalties, maybe two or three a month and they will now be paid into the Namibian bank account, but people don’t even pay these penalties.” 

He added that the original 2008 contract had been modified several times, and there is a final one in place. Asked if he was mandated to slap penalties on import and export operators, Kleynhans would not respond directly. 

“Mr Brock of the NAB must comment on the penalties. However, our inspections at the borders of Namibia bring in millions of dollars to the Customs department of the Namibian Government,” he added. “We have stopped trucks loaded with long-life milk for import to Namibia, not declared properly. This milk requires a 60 per cent import duty and we alerted the Namibian customs officials to this, and they saw to it that the 60 per cent levy was paid.”

Mesag Mulunga, Deputy Director of Marketing and Planning in the Agriculture  Ministry, said yesterday the Ministry was unaware of the penalties. 

“Our own official, who sits on the NAB board of directors, did not know about this. We requested Mr Brock to confirm, and he said that the Minister [John Mutorwa] was not informed about the penalties.”

He said if penalties are imposed, “they should go to our Government, we must check the law”.

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