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President Nandi-Ndaitwah takes petroleum sector under her office amid transparency concerns

Netumbo Nandi-Ndaitwah

The proposal to amend the law and place the management of the petroleum sector under president Netumbo Nandi-Ndaitwah’s office has been described by some analysts and political leaders as an autocratic move that signals her lack of trust in her team.

Nandi-Ndaitwah announced in March that the oil and gas portfolio would fall under the Presidency “to ensure closer supervision of an industry still in its infancy”.

“Knowing how the oil industry operates, its history and all the dynamics involved – and given that it’s a new industry – I found it appropriate that it needs close monitoring. Hence my decision to place it in the Office of the President,” she said at the time.

Nandi-Ndaitwah’s decision went a step further this week when acting minister of mines and energy Frans Kapofi yesterday motivated the transfer of petroleum powers from the mines ministry to the Presidency.

The suggested legal changes would be made to the petroleum (exploration and production) amendment bill of 2025.

Although the move has been lauded by some as an attempt to rein in a sector long shrouded in allegations of corruption, kickbacks and cronyism, others worry this could blur the lines of accountability and affect transparency.

Political analyst Henning Melber yesterday said the transfer of powers of the petroleum sector would signal “autocratic rule”.

“The accumulation of authority and decision-making in the president’s office is a reason for concern,” he said.

He said it removes sensible and significant matters further from public scrutiny and transparency and strengthens the already excessive executive powers of the president.

Melber described it as an unhealthy form of centralisation.

He said the president should provide the public with convincing reasons for such a transfer.

Political analyst Rui Tyitende yesterday said: “We need to question this obsession of centralising the oil and gas industry under the Office of the President.”

He said the move concerns a resource that is not off the ground yet, questioning why there is no sense of urgency to put housing under the same office.

“Why not healthcare as well? That’s where the real crisis is,” he said.

NEW OIL REGIME

Motivating the change of portfolio in the National Assembly yesterday, Kapofi said the amendment would establish the Upstream Petroleum Unit (UPU), a new regulatory authority, under the Office of the President.

“This unit will be headed by a director general and a deputy director general, who will be responsible for directing, managing, and supervising all upstream petroleum operations in Namibia,” he said.

Under this new framework, Kapofi revealed that the director-general would become the principal regulator responsible for licensing, compliance, and oversight of petroleum activities, while the deputy would oversee the daily activities.

The acting minister added that “this reform ensures that our technical, regulatory, and compliance functions are brought under a single, professional institution, one that is capable of responding to the demands of a fast-growing petroleum industry with efficiency and expertise”.

He said the proposed bill introduces new measures to strengthen fiscal transparency and accountability.

“It requires that all remissions, deferrals, or refunds of petroleum royalties be reported annually to the National Assembly by 30 June, through a designated minister or the prime minister,” Kapofi said.

According to him, that provision ensures that “the parliament remains fully informed about the management of petroleum revenues and that the executive branch remains accountable for every concession granted under the law”.

TRANSPARENCY

Kapofi said the the bill also reinforces ethical governance by expanding conflict-of-interest provisions to cover inspectors and staff of the Upstream Petroleum Unit, with strict penalties for breaches.

“Furthermore, senior officials, including the director general and deputy director general, are required to disclose their assets and interests to the president to safeguard the integrity of public office. These measures strengthen public confidence and uphold the principles of integrity and transparency in our petroleum administration,” he said.

‘POSITIVE STEP’

Institute for Public Policy Research director Graham Hopwood yesterday said the amendment bill is a logical move after the president established the UPU under her office in March.

“To do its work, the UPU requires a legal basis which is what this bill is about. The bill takes away significant powers and responsibilities from the Ministry of Industries, Mines and Energy and shifts them to the Presidency.

“These include the granting and renewal of petroleum exploration licences. I believe the amendment bill is a positive step forward – provided that the UPU can act with efficiency and speed in managing the upstream petroleum sector, allocating licences, and ultimately concluding production agreements,” he said.

Hopwood said it is, however, unclear what would happen to the role of petroleum commissioner.

“The minister’s repeated mentions of transparency and accountability are encouraging, but I would I need to see the bill before fully assessing if the bill goes far enough in this area.”

‘CREATING CRIMINALS’

Affirmative Repositioning chief whip Tuhafeni Hangula yesterday objected to the tabling of the petroleum exploration and production amendment bill in the National Assembly, saying it has the potential of creating criminals.

“This is a resource that has the potential to create criminals and superheroes in terms of how it is applied,” he said.

Hangula said the bill needs to be studied properly because it involves the transfer of powers from one person to another.

“Oil has been in the ground for millions of years and it is not going anywhere. There is no need for us to be bulldozed into making amendments even though there is already an existing act,” he said.

He said the bill must be treated as urgent.

National Assembly speaker Saara Kuugongelwa-Amadhila yesterday made a ruling that the bill would not be tabled due to the concerns raised by the various members, but it would be revisited when the house resumes on 3 February 2026.

LOSS OF TRUST

Political analyst Sakaria Johannes says the proposed move implies that the president has lost trust in the ministry.

“The president needs to come out to publicly address the nation and tell us why she decided to put the two sectors under her,” he said.

Earlier this year, The Namibian quoted oil expert Ibrahima Aminu as saying the move could discourage investors, as it creates an unpredictable environment.

“Investors seek transparent regulatory frameworks and clear legal protections. Moving the sector under direct political control could introduce uncertainties, discouraging long-term investments,” he says.

He says the best global examples of successful energy sectors have independent regulatory oversight without political interference.

‘NO ISSUE’

Political commentator Sam Kauapirurua yesterday said the plan is not unheard of.

“When you consider the assignment of the Transfer of Powers Act of 1990, it provides for the delegation of certain powers. The executive can assign powers from one ministry to another. This act is a tool to arrange and rearrange the executive powers and functions,” he said.

Kauapirurua said if it is done according to law it appears to be constitutionally sound.

Namibia’s first gentleman, Denga Ndaitwah, earlier this year offered context on the transfer of the petroleum department to the president’s office during a public talk at a university in Windhoek.

He said the president placed the country’s oil and gas portfolio under her office to shield it from corruption, describing it as one of the sectors most prone to abuse.

According to Ndaitwah, some individuals had hoped the portfolio would be assigned to specific ministries for corrupt gain.

“In that field, it’s easy for people to be corrupted because it’s so lucrative. They wanted the oil and gas sector placed within certain ministries or departments so that, once it’s there, corruption becomes easier,” he said.

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