Namibia judicial delays damaging economic confidence and investment, says Schlettwein

Former Cabinet minister Calle Schlettwein says delays in the judicial system can damage the economy, even leading to investors leaving the country.

“The old saying that justice delayed is justice denied is very true,” Schlettwein says.

His comments come after chief justice Peter Shivute last week raised concerns about the wider social impact of judicial delays caused by an under-staffed and overworked judiciary.

“A judiciary weakened by lack of capacity affects every sector of society. On a large scale it affects economic confidence, investment and social stability,” Shivute said during the opening of the legal year in Windhoek.

Last year, the civil division of the High Court dealt with 4 295 cases, an average of 614 per judge. Many of these were business-related, affecting procurement, the awarding of tenders, labour disputes and commercial disputes.

Schlettwein, who previously served as minister of finance and minister of trade and industry, says the slowness of the justice system has a negative effect on investments.

According to him, it is not only delayed judgements that damage the economy. Underfunding the judiciary, the rate of appeals and the cost of legal access all undermine the common good and the economy.

Independent Patriots for Change shadow minister for finance Michael Mwashindange says foreign investors assess how quickly and fairly disputes can be resolved before committing their capital.

“In a competitive global market, Namibia cannot afford institutional inefficiencies that undermine our attractiveness,” he says.

One local businessman told The Namibian that judicial delays “definitely” affect businesses.

“Through my own experience, having been through the courts, I would say it has a huge effect. It affected me psychologically and economically,” says Robby Amadhila, who owns Roama Gates Manufacturing.

He describes putting his business on hold as he travelled back and forth to Windhoek for court appearances, only to have them postponed and the case stalled for years.

However, some analysts say there is no direct impact of judicial delays on the economy.

Economist Salomo Hei says it is true that investors like predictable environments, but Namibia’s rule of law has historically been strong and investors have confidence that their investments will be protected.

A reputation for delays could hypothetically affect investment appetite, but currently this is not a problem in Namibia, he adds.

Governance expert Steve Galloway says Namibia’s competitiveness assessments have generally been enhanced by the positive view of the judicial system as fair, efficient and independent of political influence.

However, he adds that delays in recent high-profile corruption cases may be eroding Namibia’s competitive edge in this regard.

Galloway says the executive and legislative branches of government have a far larger impact on the investment environment than the judiciary.

“The inordinate delay of the Namibian Investment Promotion Act, passed by parliament in August 2016, has been a major cause of uncertainty about the legal framework relevant to investments,” Galloway says.

He also cites delays in amending the Minerals Act of 1992 and the Petroleum Act of 1991 as off-putting to investors.

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