Intellectual Property Rights and how it affects the consumer

(First appeared in Consumer News Namibia Magazine April 2013)

In many areas of business today, the term Intellectual Property (IP) is being used to justify the higher price of a product or service – and the prevention of competing businesses being able to provide the same product or service. This means a competing business may not sell the product or service at all – even if it would mean a cheaper cost to the consumer. However, it is important that intellectual property rights protection be encouraged in society to ensure that better inventions, products or services are being created.

Wikipedia defines IP as:

Intellectual property (IP) rights are the legally recognized exclusive rights to creations of the mind. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets.

As a consumer, we all want to be able to buy a product for a cheaper price, but we do not want to compromise on the quality of the product, or even worse use a cheaper product that might actual cause us physical harm. It is thus clear that there must be a point of equality where the IP holder gets a decent return for the investment of their idea or invention compared to the price the consumer has to pay for such a product or service.

To understand this concept better, let us examine each type of right that is referred to:

·         Copyright

Copyright gives the creator of an original work the chance to receive payment for their work and allow them to financially support themselves through this work. This is often granted to visual and audio works such as music, books, paintings, etc. Copyright is recognized without any formal registration in most countries – as long as the work is in a completed form.

·         Trademarks

A trademark is sign, design or expression that identifies products or services from a specific source. International examples include Coca Cola, Facebook and Toyota. In Namibia, an example is the trademark of MTC which is fully written out as Mobile Telecommunications Limited. Trademarks allow the consumer to be assured that a specific product or service does in fact originate from the company whose trademark is used.

·         Patents

A patent is a set of exclusive rights granted by a country to an inventor for a limited period of time in exchange for detailed public disclosure of an invention. The exclusive right granted to a patentee in most countries is the right to prevent others from making, using, selling, importing, or distributing a patented invention without permission.

·         Industrial Design

An industrial design right protects the visual design of objects that are not purely practical or functional. It can consist of the creation of a shape, configuration or composition of pattern or color, or combination of pattern and color in three-dimensional form containing artistic value. An industrial design can be a two- or three-dimensional pattern used to produce a product, industrial commodity or handicraft. In Namibia, local handicrafts can qualify for industrial design rights.

·         Trade Dress

This refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers. Examples are the Team Namibia products that carry the Team Namibia logo.

In Namibia, the government, business community, civil society and the consumer needs to define how to ensure that intellectual property rights are protected (and encouraged) while not allowing exploitation of the consumer.



Milton Louw is a consumer activist and writer. He is presently the IT Project Coordinator at the Electoral Commission of Namibia. The opinions expressed in this article are purely his own.

Imagine life without debt!

(First appeared in Consumer News Namibia Magazine April 2013)

“Debt is like a disease that can enable us from living a happy and normal life by taking control over our lives. Most of us don't even know how we end up in the situation we are in. Buying everything we own with credit has become our culture. But don't let debt control your life any more. You can take over your life again. Imagine life without debt!”

Is it true? Can a person do things in life without using getting into a debt trap? YES. The problem is not about using debt or cash, but rather about financial management and making sure you keep yourself out of trouble and ensure you don’t worry too much about the level of credit you have or are using.

Remember the following are tips only – you must find the ones that work best for your and apply them to your life.

1. Don’t get into debt
Use cash wherever you can and do not take out any debt except for a motor vehicle or a house.
2. Spend less money than what you earn (obvious but needs to be said)
3. Write down all your liabilities so that you can see what is the amount of money you owe the world. This should be very motivational if you keep a record of this amount as you start paying it off.
4. Cut up your credit cards – all your clothing accounts, etc. should rather be on a cash buy basis
5. Avoid eating out – if possible cook at home and you will save a lot – you can splurge on a cookbook that can help make your meals a little more interesting too.
6. If you go out, visit friends and find things to do that is not expensive – going to the dam, or the park, visiting a museum, etc.
7. Plan for future expenses now.
8. Make a budget – and stick to it
9. Speak to your spouse or partner about both your spending habits – it takes both of you working together to reach your goals
10. Be realistic – the debt will not go away overnight. The same time it took to accumulate the debt is about the time you will need to pay it off
11. Eliminate some things – look hard at the things you spend your monthly budget on – and cut some of them out. This might be your MNET subscription or the gym membership that you never use?
12. STOP borrowing money – every cent borrowed during the month feels like twice the amount when you have to repay it. This is especially true if you are using a cash loan facility.
13. Turn off your television – this way the adverts will not tempt you.

Number thirteen was thrown in to make you laugh – but the advice of not letting temptation ruin your budget is true. Don’t take those pamphlets that the jewelry or clothing store gives out. Don’t open the catalogues they send in the mail – all of it is aimed at making you spend more.

Fuel Card debate

(First appeared in Consumer News Namibia Magazine April 2013)

On 12 April 2010, the Bank of Namibia announced that “..As part the Namibian payment system reform initiative of which the implementation of the local card switch, NAMSWITCH, has been one of the milestones, the Namibian banking industry resolved to discontinue petrol cards in Namibia in the near future. The public will instead be allowed to purchase fuel with internationally accepted debit and credit cards. The Payment Association of Namibia (PAN) wishes to inform the public that they can use their debit and credit cards to purchase fuel at Filling Stations.

These developments are good steps in the right direction for consumers, for fuel retailers, and for the country as a whole. The use of broader range of payment instruments at Fuel Stations provide consumers with choices of which payment instrument to use and as such eliminate cash based transactions in favour of a more convenient, secure and cost-effective method of payment. “

At the time the announcement was made, it was understood by consumer groups to be a good thing as it would widen the choices of payment methods by consumers. For once it seemed that the banking industry was thinking of the consumer first.

Two years down the line and the Bank of Namibia informed the public that “..that fuel cards (Garage and Petro) will no longer be accepted  as a legal tender after 28 February 2014.  After this date clients will be able to purchase fuel with cash, debit or credit cards. Clients should note that fuel stations are not obliged to accept debit or credit cards for purchases.”  

It was that last sentence that had some of the consumer groups contact the Association of Service Station Owners (ASSO). After all, why would a fuel station refuse to get paid for fuel?

The ASSO then pointed out that when using a debit or a credit card, one and a half percent goes to the bank, which it takes from the 77 cents profit. Further, service stations may not charge a client any surcharge fee for a point-of-sale transaction for fuel with a credit or debit card. In fact, banks have asked its clients to contact them should a service station charge an additional fee for the transaction.

Since the 28^th of February 2014, many fuel stations are turning away all customers that want to use cards to purchase fuel. This has led to many consumer now having to carry the cash around in their pockets for this vital product needed in our daily lives.

So what must be done? The Bank of Namibia and the Payments Association of Namibia (PAN) assured the public in April 2010 that “…these developments are good steps in the right direction for consumers, for fuel retailers, and for the country as a whole.”

This is not the case! Consumers and fuel retailers are being inconvenienced, and these measures also increase the profits of the bankers. They – the bankers - have changed the terms and conditions of how we pay and increased their profit margin while pretending that this is to our benefit.

It is clear that the Namibia Competition Commission (NCC) must become involved in this debate. Consumer groups welcome the fact that the NCC is “highly concerned” that the decision has indeed led to constraining consumers in their method of choice to settle an applicable transaction.

Consumer groups mobilise to demand phone rights for 7 billion users

(First appeared in Consumer News Namibia Magazine April 2013)

Consumers International (CI), the global federation of 250 consumer groups, published its Consumer Agenda for Fair Mobile Services ahead of World Consumer Rights Day (WCRD) on Saturday 15 March 2014.

In the run up to 15 March, consumer groups from around the world made a call on mobile phone service providers to demand better services for the 7 billion mobile users across the globe. Mobile rip offs are commonplace – from holidaymakers being stung by four figure roaming bills abroad, to customers tricked into paying to receive text messages.

With smartphones set to function as a remote control for more and more aspects of our lives, consumer groups believe now is the time to ensure big mobile companies are held to account for unfair, substandard services.

In consultation with consumer groups around the world, CI drew up a Consumer Agenda for Fair Mobile Services, which outlines what the consumer rights movement wants to see changed. This includes demands that telecom companies:

• provide consumers with access to an affordable, reliable service

• provide consumers with fair contracts explained in clear, complete and accessible language

• provide consumers with fair and transparent billing

• provide consumers with security and power over their own information, and

• listen and respond to consumer complaints.

CI is planning to deliver this message to the International Telecommunications Union (ITU) - the UN body responsible for setting standards in the industry - ahead of the ITU World Telecommunications Development Conference in early April.

Amanda Long, Consumers International Director General says:

“Mobile phones are an everyday part of the lives of billions of people. From social interaction, and digital identity; to banking and e-commerce: they have become essential to the way we live, spend, connect and express ourselves.

“But consumers the world over complain about the service they receive from telecom providers. From West Africa, to Asia Pacific; Europe, to South America - our member groups are telling us that connection reliability, unfair contracts, unclear billing, poor customer services and concerns over data privacy are regular issues for consumers. It’s time the international telecom providers answer the call for action.”

Namibia is no exception. The telecommunications industry does not have a service of culture and now that it all telephonic services fall under one company (Namibia Post and Telecom Holdings), competitiveness is not a driving force for change.

The Communications Regulatory Authority of Namibia (CRAN) is responsible for regulating the telecommunication services and networks, broadcasting services, postal services and the use and allocation of radio spectrum. Consumer Protection and Advocacy forms an integral part of CRAN's mandate. CRAN is supposed to ensure that consumers receive the full benefits of competitive electronic communication services and are protected from any exploitation or abuse. A streamlined complaints handling system in accordance with the Act has been put in place, but no consumer group has yet evaluated the process or had access to reports on the internal handling of the complaints received by the authority.

Note: Leo was purchased by Telecom and is now renamed TN Mobile. Telecom and the Post Office are 100% owned by Namibia Post and Telecom Holdings (NPTH). MTC is 66% owned by NPTH.

My Do and Get Book

(First appeared in Consumer News Namibia Magazine March 2013)

The Bank Windhoek group of companies has been supporting entrepreneurial development among children of school going age through the Bank Windhoek BizzKids competition. Last year, the winners were Keanu da Silva (13) and Keyat da Silva (11) trading as “Team D” from Eldorado Secondary School and M H Greeff Primary School. The business product they created was the “My Do and Get Book”. In basic terms, the two brothers sold work plans for children to do household chores to teach them to be responsible and at the same time earn pocket money for household chores done.

Wikipedia explains “pocket money” as follows: An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. In the context of children, parents may provide an allowance (British English: pocket money) to their child for their miscellaneous personal spending.

The person providing the allowance is usually trying to control how or when money is spent by the recipient so that it meets the aims of the person providing the money. For example an allowance by a parent might be motivated to teach the child money management and may be unconditional or be tied to completion of chores or achievement of specific grades

As a consumer activist the business idea of the brothers really caught my attention. First, it explains the importance of children being given the responsibility of doing things around the house as part of their contribution. Secondly, it adds the element of understanding the value of these chores in terms of earnings. These earnings (points based system) are converted into an agreed amount in Namibian dollars that the child can receive at the end of every month as their allowance. Thirdly, it leaves a long lasting experience for the child to prepare them for the “real” world where nothing in life is free.

The book is a daily reminder (when used correctly) about what is responsibility while reminding the child of the rewards due for the work done. This moral lesson is reinforced by the weekly checking of both chores and points awarded. At the end of the book, it also allows for a balancing to be done of both parties contribution to the work programme outlined in advance.

The business idea has now been formalized and the duo, together with their parents is shopping around to find a corporate sponsor. I hope that corporate sponsors are open to this idea, and link it to other products to also include saving and banking of these allowances.

Milton Louw is a Namibian consumer activist and is not affiliated to the business “My Do and Get Book” in any way or form.

Consumer Rights Day 15 March 2014

(First appeared in Consumer News Namibia Magazine March 2013)

World Consumer Rights Day (WCRD) was established on 15 March 1983 to promote consumer rights around the world. For WCRD in 2014, consumer organisations around the world are highlighting the consumer issues that are undermining and frustrating the success of mobile phone services.

The international consumer body, Consumers International (CI) will be launching a new Consumer Agenda for Fair Mobile Services. The agenda sets out the issues that most effect consumers including the need for access to a reliable service, the security of their data and fair contracts and billing.

CI will submit the Agenda to the World Telecommunications Development Conference, held by the International Telecommunications Union, where they will be calling on phone regulators and companies to take action to stop these issues undermining the success of this new technology.

Consumer Agenda for Fair Mobile Services addresses the issues that affect mobile consumers across the world and Namibia is no exception. Some of the issues that we need to address globally are:

1.       Provide consumers with access to an affordable, reliable service

Consumers want to be able to have access to affordable mobile services in order to communicate and to access information. It is only reasonable that they then expect those services to be consistent and of a high quality without drop outs in service.

2.       Provide consumers with fair contracts explained in clear, complete and accessible language

Consumers often feel cheated by their mobile provider, either because of unfair contract terms and conditions or because they didn’t understand what they had signed. Telecom providers should always provide consumers with fair contracts with all relevant information explained clearly so that consumers can exercise their right to make informed choices.

3.       Provide consumers with fair and transparent billing

Consumers shouldn’t be billed for services they didn’t request. We demand fairness and transparency in our bills, and protection from billing fraud.

4.       Provide consumers with security and power over their own information

Telecoms providers and regulators alike must protect the personal data that consumers give up in order to use mobile services. Whilst giving consent to use personal data can enhance the experience of using a mobile phone, it can also compromise the consumer’s right to safety. Consumers must be able to set the terms of how this data is used.

5.       Listen and respond to consumer complaints

Telecom providers should have effective complaints systems and if consumers are not satisfied there should be redress mechanisms to ensure a fair outcome. We must be able to penalise providers for abusive and unjust business practices.

Conclusion – Namibia’s Consumer Programme

For 2014 the Namibia Consumer Protection Group (NCPG) will be meeting with the Communications Regulatory Authority of Namibia (CRAN), Telecom Namibia and MTC to discuss the Consumer Rights Charter and how the present laws and regulations might not be meeting the needs of the Namibian consumer. Issues to be addressed include

a.       the lack of progress on number portability (keeping your own number no matter who the service supplier is);

b.      data services not up to advertised standards; and

c.       complaint procedure (redress for service gaps).

Any consumer which wants to have more information about these and other consumer issues can contact email address: miltonlouw@gmail.com

Service culture in Namibia

(First appeared in Consumer News Namibia Magazine March 2013)

I have been plagued in the past few weeks with the bad level of service I received from companies around Namibia. It has gone from a restaurant which brought the starters (oysters) twenty minutes after the main course had arrived, (the main course was a medium-done steak and should have taken much longer than shelling oysters), to a telephone call to a bank to request their latest home loan rates and I was informed that the person dealing with that type of enquiry is not answering their phone.

This led me to look again at what service is, and more importantly how do we go about creating a “service culture” in the country.

Allow me to first define the words Service and Culture.

For me the word SERVICE is “performing work for someone else”. Culture is defined as the “total inherited ideas, beliefs, values, and knowledge, which constitute the shared bases of social action.”

Looking at these meanings we look at the key messages to found within these two words, namely

• Inherited
•  Shared
• Values
• Knowledge
• Perform work for someone else

This is the message we need to make part of our normal everyday lives. As Namibians we must strive to implant a Service Culture as a “lasting inheritance of shared wisdom.” This working together will make the end result far greater than the sum of individual contributions.

So how do you become part of creating this Service Culture? Or more importantly, why do you as a customer also have to play a part in encouraging the Service Culture.

During Apartheid, one of the important weapons used by activists was the “consumer boycott”.  A Consumer boycott means a boycott adopted by consumers of both product and services to express their displeasure with the seller, manufacturer, or provider. Sometimes, customers may refuse to purchase a particular product in order to show their dissatisfaction to the excessive price or offensive action of a particular manufacturer or producer.

At this point is also important to balance what part the Service Culture plays from the employees to us as customers, and how much of the Service Culture is influenced by the relationship between the employer and their employees.

So, if a company or service supplier provides me with employees who treat me badly or with slow service, I must differentiate between the service being done to me (is it personal) or is it a business culture within that business.

I have looked again at the service provided to me by the restaurant in my opening paragraph. This same restaurant was in the news less than two days later as the owner had fired a staff member for eating leftover food. For those of you who work in the hospitality industry, you know how unappetizing the food at your own workplace becomes, what still to say of the leftovers you see being thrown every day? Looking more closely at the restaurant and the way the owners are reported to treat their workers, I will boycott such a business until they improve their treatment of their employees – which will surely bring about an improved customer service.

Sometimes bad service must lead to a moral purchasing decision by a consumer. Yes, that means I will rather go without your product or service until such time as the relationship between employer, employee and myself becomes something worthy and part of our shared Namibian Service Culture.

Read Before You Buy

(First appeared in Consumer News Namibia Magazine January 2013)

When was the last time you read the product description or spent time understanding the labeling of a product you have purchased? How many times have you accepted that the product meets your needs without actually understanding what the product is composed of? Unless you have a specific allergy or irritation that is caused by a product, most of us would purchase without taking time to look at the specific ingredients of the product.

Recently, I was advised to take an energy supplement as I am working up till 10 hours a day, seven days a week. A friend gave me an energy supplement of Bioplus and swore that this would “energise” me and provide that needed boost. (It should be noted that the Bioplus sachets can be bought at most supermarkets, small shop or even a service station shop and are displayed quite prominently.) After about two weeks of taking these energisers on an almost daily basis, I went on Christmas leave and felt I would not need the drinks any more. After a day of two of not using the sachets I developed a craving to at least buy a sachet or two.

Normally, I am able to handle any craving by just ignoring it until it goes away. However, the feeling of wanting to have a sachet stayed with me for about a week.  After the week had passed I happened to be passing a store where the sachets were displayed – and having time on my hands – and took a chance to look more closely at what are the ingredients of the Bioplus sachets. Great was my surprise to read that each sachet has its main ingredient Alcohol at 10% of the volume.

That means the sachet of Bioplus has 10% of volume consisting of alcohol which puts it at more than twice the strength of a beer. The sachets I had been drinking without thought of a consequence was in fact putting me in danger of been drunk at work, or even more dangerous could cause me to have been over the legal limit of alcohol in my body if I had been caught driving.

I am sure that no police officer in the country (or my Boss for that matter) would believe that I had become drunk from drinking an energy drink.

As a consumer activist I always pride myself on being a “active consumer” in that I pay attention to what a product contains, but realized how quickly I had bought into the product myth that the Bioplus sachet would give me more energy. Looking back, I wonder if I really had more energy, or did the alcohol mislead me into believing that I had more energy while all it had done was give me a drunken buzz?

For myself, I will be checking the products I purchase a lot more closely, until the next time I buy into “the feel good factor”.

Not just food security – but also food safety

(First appeared in Consumer News Namibia Magazine January 2013)

Namibia is facing one of the worst droughts in the past three decades.  The Office of the Prime Minister, in March 2013, budgeted to assist about 331 000 people in communal areas that are classified as food insecure. In the meantime that amount has ballooned to almost 560 000 by December of the same year. The areas affected by the drought were mainly communal (rural) areas and resettled farms. Through the Office of the Prime Minister’s relief programme the government has distributed maize, beans, tinned fish as well as game meat.

During this period, most of the development partners have focused on poverty or food security, but very few have emphasized the need for food safety. Consumer organisations (in Namibia and abroad), also emphasize food safety when discussing food security, as this is the assurance that eating something will not damage your health.  This is an absolutely fundamental requirement, and as important as having enough food to eat.

According to Wikipedia:
“Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness. This includes a number of routines that should be followed to avoid potentially severe health hazards. The tracks within this line of thought are safety between industry and the market and then between the market and the consumer. In considering industry to market practices, food safety considerations include the origins of food including the practices relating to food labeling, food hygiene, food additives and pesticide residues, as well as policies on biotechnology and food and guidelines for the management of governmental import and export inspection and certification systems for foods. In considering market to consumer practices, the usual thought is that food ought to be safe in the market and the concern is safe delivery and preparation of the food for the consumer.”

The food safety challenges facing Namibia are still many. They include a lack of standards and policies, uncoordinated or perhaps even disjointed governance between organisations, inadequate testing facilities (though the Government is addressing this), lack of trained staff, porous borders with our neighbours and an absence of enforcement of the rules regarding food safety.

Perhaps it is time to asses our ability to not only react to a drought and the provision of food, but also include an element of food safety to ensure that all the people in the country are able to eat something that will not damage their health. After all the first two components of the consumer rights charter worldwide are the right to satisfaction of basic needs and the right to safety.

Milton Louw is a consumer activist and author. The opinions in this article are solely his own and in his personal capacity.

E-Justice - Changes proposed to laws on High Courts in Namibia

(First appeared in Consumer News Namibia Magazine October 2013)

Proposed amendments to the High Court Act that have been tabled in the National Assembly should pave the way for the introduction of a new electronic documents filing system in the High Court. The High Court Amendment Bill, which was motivated by the Minister of Justice, Utoni Nujoma, contains several proposed changes to the High Court Act of 1990 that would also give the Judge President of the High Court wider powers to make rules that would determine the way the court functions.

The main change highlighted in Parliament was that the provisions tabled would enable the Judge President to make rules that require legal documents to be filed with the court. The object of introducing the electronic court filing system, commonly referred to as e-justice, is to eliminate as far as possible the filing of court documents in hard copy. With the introduction of e-justice the aim is to achieve the quick and fair disposal of cases, which would in turn result in a reduction in litigation costs to the consumers / citizens in the country.

Immovable Property rules for unpaid debts

The judge president will (under the new law) be given the power to make court rules that would regulate the selling of immovable property of people being sued over unpaid debts where the property is the primary home of the debtor. Thus under the new rules, it would give the High Court the power to transfer the responsibility of collecting unpaid debts to a Magistrate’s Court.

By transferring the responsibility of collecting debts in execution of a judgement given against a debtor to a Magistrate’s Court, judges’ increasing workload would be eased and judgement debtors would no longer have to travel long distances to attend financial enquiry sessions in the High Court, as these would instead be held closer to debtors in district courts.

The High Court Amendment Bill also states that the judge president may make a rule to regulate the selling of immovable property where the property is the primary home of the person against whom a judgement has been granted. It is proposed that the judge president may prescribe that a reserve price should be set for the sale of such a property, and that the property may not be sold to the highest bidder at a price lower than the prescribed reserve price.

Alternative Dispute Resolution

Another of the change in rules would allow new compulsory alternative dispute resolution mechanisms that would have to be followed in certain cases before the court.

The aim with the compulsory alternative dispute resolution mechanism (ADRM) that is to be introduced in some cases is to enable the parties involved in a dispute to avoid having to go through expensive trial proceedings in court. In countries where alternative dispute resolution mechanisms have been adopted it has been shown that disputes can be resolved quicker and less costly than through litigation and court proceedings.

In the bill it is proposed that judges should be given the power to order parties to a dispute to refer their dispute for alternative dispute resolution, and that a case may thereafter be taken to court for a hearing only if an alternative dispute resolution process has not succeeded.

Milton Louw is a writer and social activist. He is presently the IT Project Coordinator at the Electoral Commission of Namibia. All opinions expressed in this article are his own.

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Davey Galant and our housing problem

(First appeared in Consumer News Namibia Magazine October 2013)

I once played a Cape Coloured man, Davey Galant, in the Adam Small play Joanie Galant-hulle. The play deals with the eviction of people of colour from their houses due to the South African government’s policy of Apartheid. The play deals with the difficulties in a family after the forced removal and the steady degeneration of Davey into drinking and other “typical” coloured behavior.

The version of the play I acted in was called “Eviction” and reworked by Namibian playwright Frederick B. Philander to find an echo with the forced removal of the “Ou Lokasie” residents in Windhoek on 10 December 1959.

This character seems to have become my alter ego, in terms of being “my second self, or a trusted friend. The recent evictions of poor members of society by the municipalities or town councils in Namibia have brought out this “trusted friend” who uses the line “huis, paleis, pondok… malhuis’ or in English, “house, palace, shack… madhouse”.

The issue of housing in Namibia cannot be separated with the right of each and every citizen to their dignity. Without a place of safety in which we can be assured our earthly belongings will be safe, none of us will be able to continue our contribution to the society as we would be fearful of leaving our belongings in a place that is not secure.

The Government of the Republic of Namibia (GRN) has announced an ambitious N$45 billion mass housing development programme through which it intends to build 185 000 houses by 2030 to mitigate the current nationwide 100 000 units housing deficit.

The initiative announced by the Minister of Regional and Local Government, Housing and Rural Development, (Rtd) Major-General Charles Namholoh on 9 September 2013, will be implemented by the National Housing Enterprise (NHE) which is mandated to build low-cost houses for low-income earners and even for middle-income earners. This is the biggest housing plan ever to be launched in the country.

This comes about after President Pohamba appointed the Minister of Regional and Local Government, Housing and Rural Development, the Director General of the National Planning Commission (NPC), the Minister of Finance and the Minister of Presidential Affairs as national committee members on the envisaged mass housing development programme. The group has been tasked to come up with ideas to accelerate the delivery of houses around the country to comprehensively address the issue of housing. It is intended that the programme will remedy the problem of inflated house prices and rental fees, which non-home owners are increasingly unable to afford.

While as consumers, we welcome the governments initiative we must ask some critical questions regarding the housing programme:

·         Does the NHE have the capacity to build 9 000 houses in the first 18 months of the programme? After all, NHE has only built 13 295 houses over the past 22 years and will now be the administrator of the mass housing programme.

·         How will financing of this programme be done? Conumer News Magazine has been informed that most of the financial will be done through government grants to be channelled through his ministry, local authorities and NHE but very few further details are available. The Minister also indicated that other sources of finance could be public-private partnerships, debt financing and household saving groups such as the Shack Dwellers Federation of Namibia.

·         Who will be the beneficiaries, and who will make that decision?

The Minister and the NHE need to address these pressing issues to assure the potential beneficiaries that there is finally light at the end of the tunneling for our housing woes.

Privacy and CCTV

(First appeared in Consumer News Namibia Magazine October 2013)

The Windhoek Municipality, has recently installed over 70 closed-circuit television (CCTV) cameras in and around the town.  These are to be found in the city centre as well as at the four roadblocks at Brakwater, Heroes Acre and Daan Viljoen and one at the road block on the way to Hosea Kutako International Airport.

According to City Police Senior Superintendent Gerry Shikesho the issue of privacy was discussed and it was found not to be a serious hindrance. “Who would want to do private matters in public places,” he asked during an interview with New Era, adding that the cameras are there to safeguard everybody’s safety. The cameras have varying purposes, which include informing municipal staff of faulty streetlights, crime and fire prevention and detection, traffic management, ensuring quick responses to medical emergencies and detecting infringement of by-laws.

As consumers we have to ask if this is really the case. Has our privacy been respected or is it another attempt at taking away the rights of the individuals privacy?

The Namibian Constitution states in Article 13 states on the right to Privacy:

“(1) No persons shall be subject to interference with the privacy of their homes, correspondence or communications save as in accordance with law and as is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the protection of health or morals, for the prevention of disorder or crime or for the protection of the rights or freedoms of others.”

The Constitution thus guarantees only “Physical Privacy”. The storage of personal and business information (“Informational Privacy”) as well as the storage of our actions in a public place through the use of CCTV must have legislation that will prevent misuse of this information. In addition, the individual in Namibia must be able to access any, and all, information that is stored by the state or public institutions such as the Municipality of Windhoek. In this regard, City Police Senior Superintendent Gerry Shikesho states, Footage is recorded and stored and police can access it if it is needed for an investigation.” He said footage from the cameras is state evidence and members of the public who wish to view the footage can do so by placing formal requests through the police.

As a consumer magazine, we must once again reiterate that there are two fundamental pieces of legislation that is lacking in Namibia, namely a Data Protection Act; and Privacy and Electronic Communications Regulations to ensure our “informational rights” are enforced.

Data Protection Act

The Data Protection Act will give you the right to know (access) the information being held on you. It also sets certain key principles that anyone who handles personal information must comply with. The Act should also establish an Information Commissioner. The data covered is any information which can be used to identify a living person. This includes names, birthdays, addresses and other contact details. It only refers to information stored on computers.

The key principles of a Data Protection Act must include:

•             Data may only be used for the specific purpose that it was collected;

•             Data may not be shared with others without permission of the individual whom such information is about – unless there is a legitimate reason;

•             It is illegal for other parties to obtain this information without permission;

•             Individuals have the right to the information about them subject to certain conditions;

•             Personal information should not be kept longer than necessary;

•             All businesses that collect personal information must register with the Commissioner; and

•             Incorrect information must be corrected when it is brought to the attention of the data storage business.

No longer the land of milk (or honey)

((First appeared in Consumer News Namibia Magazine October 2013)

Recently the Economist newspaper also weighed in on the issue of fluctuating milk prices. “Milk prices on Namibian supermarket shelves are baffling local consumers. It used to be that there was a minor price difference between imported South African dairy products and the local brands, but this was usually in the order of one dollar or less.”

This issue has also been covered by the Namibia Consumer Protection Group (NCPG) when they proposed the 2013 Consumer Day be named “Namibia Milk Price Day”. The idea was for any Namibian consumer to buy a litre of milk and then inform the NCPG of the type of milk, the price they paid and where they bought their litre of milk.

The Consumer Action explained

This year 2013, the Namibia Consumer Protection Group (a lobby group and supporter of consumer activism) is asking people around the country to buy on 15 March 2013 a litre milk everywhere in Namibia, and then please post on the  website the price they paid and the store where they bought it. Perhaps we can we create awareness why we need a Consumer Protection Law and we can all see to what in-fluxed prices and irregularities exist in our own land of the brave. The idea is that every time you buy a litre of milk, you visit the webpage http://www.namibiamilk.com/ and upload your details.

The page will continue to operate for the next year to allow us to correlate data on what consumer throughout the country are being charged for this basic necessity.

Remember it iss easy, "You can report the price of milk online. Simply go to www.namibiamilk.com and click on the 'submit a report' button. Alternatively find us on Facebook by searching for Namibia Milk Price Day".

It is important that consumer in Namibia should start demanding their rights. The way it is going at present, we are simply made promises and none of them are being kept.

Update

Since the start of the action, numerous consumers have reported the price they paid for milk and it was confusing to see how prices can fluctuate for the same product in different stores in one location such as Windhoek.

What was even more surprising (and confusing) was how prices could differ IN THE SAME STORE on different days. The prices in a period of two weeks went up and down from a low of N$ 12.99 to a high of N$ 15.70. That’s right, the price went up, then down, then up again without any understandable reason.

The consumer is being ripped off as most of us buy our milk on a daily basis and do not regularly check the price. How often have you not rushed into a shop to buy a milk and bread and paid without checking the price?

Infant Industry Protection

Now add to this the protection given to the dairy industry to protect them from milk imports from other countries, especially South Africa. This allows the local industry to increase their prices to “ensure their profitability” and prevents the consumer form choosing a product that suits their pocket.

As Namibians we can support the infant protection because it ensures there are more jobs for Namibians, but are we going to allow ourselves to be ripped off because our hearts are in the right place?

The way forward

The Government of the Republic of Namibia is urged to look into the matter and explain to the consumers how this sector is being regulated to ensure that the “infant protection” status is not allowing for excessive profits, and why the price of milk is like a roller coaster within most retail outlets.

My opinion is that most of us are being abused with the pricing because this is a necessity we cannot do without.

Sectoral Regulation and Competition

((First appeared in Consumer News Namibia Magazine October 2013)

The Namibia Competition Commission (NaCC) held a workshop in Windhoek on 24 September 2013 to discuss the regulation of various economic sectors in Namibia. The issue of regulation is important from and political, economic, social and technical point of view. Through the efforts of various ministries and institutions, laws and regulations have been passed and has unintentionally created overlap in some areas while leaving blank areas where regulation might be needed. There is a growing realisation that there is need for a strategy towards better regulatory design and oversight within a framework of coordination. This will lead to better regulatory governance in terms of transparency, consultation and access to information by the public.

The workshop organised by NaCC aimed at deliberating existing issues in regulation with reference to other existing regulatory bodies in the country. These regulatory bodies include:

• Bank of Namibia
• Namfisa
• Communications Regulatory Authority of Namibia
• Electricity Control Board

Each of the invited regulatory bodies gave an in-depth presentation of their own mandate, their aims and objectives and the challenges they face in regulating the sector(s) they operate in. Each entity also gave an overview of how their body interacts with the other regulators. Below are three are of those overview.

Bank of Namibia

The BoN has the power “to authorise persons to conduct business as a banking institution, to control, supervise and regulate banking institutions as to protect the interest of persons making deposits with banking institutions”. During the BoN presentation it was further highlighted that the Bank distinguishes between a banking institution and an authorised payment provider. The second is authorised to be part of the National Payment System, but not authorised to accept deposits.

Communications Regulatory Authority of Namibia (CRAN)

Cran is the body responsible for regulating the communication sector which includes telecommunication services and networks, broadcasting, postal services and the use and allocation of radio spectrum.

In Section 2 of the Communications Act the objectives are spelled out and specifically state in paragraph (k) to ensure competition and consumer protection in the telecommunications sector. CRAN has been very active in encouraging consumers to make use of the complaints procedure as laid out in the regulations to ensure the compliance by service providers on the quality and availability of their services.

Namibian Financial Institutions Supervisory Authority (Namfisa)

Namfisa is responsible for the regulation and supervision of non-banking financial institutions. These include pension funds, medical aid funds, friendly societies, long and short term insurance, investment managers, unit trusts, stock brokers and sponsors, the Stock Exchange and micro-lenders.

This function is commercialised with Namfisa (rather than a government division) to show the governments’ commitment to improve the financial soundness of the non-banking financial industry and to secure protection for all stakeholders in the industry, including consumers.

What was encouraging was the level of trust and interactivity expressed by the various regulators as to their working with other bodies. This was especially noticeable through the various Memorandum of Understandings (MoUs) signed that highlighted their desire to protect the rights of consumers across the various sectors.

Is “Good Namibian Customer Service” an oxymoron?

((First appeared in Consumer News Namibia Magazine September 2013)

The dictionary defines the word oxymoron as “a figure of speech that combines contradictory terms” for example “ground pilot”, “living dead” and “dark light”. This month I wish to add “Good Namibian Customer Service” as a term which is contradictory.

Normally I am an optimistic person to see the positive outcomes of any situation. But this past month has given me a very trying situation to deal with. Let me explain:

A friend of mine has applied for a work permit from the Ministry of Home Affairs since 2010. He applied via our Embassy in London and was told it could take three to six months. In the meanwhile, he received a standard tourism visa to visit the country to explore the options for doing his study research for his Doctorates thesis. The work he would be involved in is assisting on the farms where the research is being done. The work itself is voluntary in nature and he would receive a volunteers’ allowance. So no danger of taking employment from a Namibian and the research work would in fact create employment during the five year study period. After returning to England and waiting for the required period he contacted the Embassy who still had not got a reply from Namibia. He was advised to apply for a work visa (three months) and it would be soon forthcoming.

That was three years ago. Since then he has had to apply for multiple extensions for a work visa and all were granted till early this year. The extension was not granted and he had to return to London while a new application for a work permit was made. Apparently the original work permit application (from 2010 has been mislaid.

Once again an application was made for a work permit as well as for the work visa which would allow him to return. The work visa for three months was granted in May 2013 and he returned to finalise an agreement with the Polytechnic of Namibia and his home University to do complementary research work with students from both organisations.

In late July he again requested for clarity on his work permit as well as the extension for his work visa if the permit application was not yet complete. Imagine his surprise and dismay when he was informed that his application was lost. The supervisor admitted that he had seen the application personally – we had requested an employee to check with him upon submitting the application that the paperwork was fine. Unfortunately neither the Supervisor nor their Archives could find a copy of either application even though a file number was allocated.

So once again my friend had to complete the entire application. This is not as easy as it sounds as he had submitted the original police clearance certificates, radiological reports, etc. with the application again after the first file was lost. Luckily most of the documents had been scanned so we were able to print a reasonable facsimile and this was accepted by Home Affairs.

My question must then be to our Namibians whether they are working at government or private institutions, “Do you know that the Customer is King?” It surely does not seem that way.

Houses built in Namibia not always up to scratch

((First appeared in Consumer News Namibia Magazine September 2013)

Recently a reader contacted the Consumer News Namibia magazine to complain about the housing. Various consumers have complained about the high cost of housing, the skyrocketing of rents and generally the lack or shortage of housing. This consumer had a very different complaint and led to some in-depth investigation to understand the issues involved.

The reader states “I have recently moved into a complex that was built within the last four to five years. The previous tenants were students and therefore I accepted there were some shortcomings on the property and the landlord and I agreed to deduct the costs of renovations or replacements to the building that I may incur. Once I moved in I started realizing there were problems that were not made by tenants, but rather structural problems in the way the property was built. To name just a few:

·         The geyser outlet pipe on the first floor is directly above the back door on the ground floor. This means when the water overflows it drops directly over the backdoor leaving a pool of water. As the geyser is on the first floor, it is very difficult to get to the outlet pipe and will need a professional to fix this problem.

·         The backyard of the property has no drain at all. There are two taps for the washing machine and the washing machine outlet is there, but the additional tap in the backyard has no drain into which it flows. Further, as there is no drain, all the water has to drain out through the neighbours backyard through a very small opening. I am sure this will cause a major problem when the rainy season starts.

·         The stairway is to narrow and not high enough to pass a double bed upstairs. We had to hoist the bed over the balcony to get it into the bedroom.

I contacted the consumer and got the details of where the flat is situated and was able to get more information regarding the developers.

Neither the developers nor the builders have responded to any questions in this regard so I decided to take this up with the relevant authorities. This was not an easy task. The law that is applicable is apparently not the Namibian Standards Act of 2005 as this Act clearly states in Section 35 (3) that "Any standard building regulation which was framed and published in terms of 14bis of the Standards Act, 1962 .. and which was in force immediately before the commencement of the Act, remains in force..."

Thus the Namibian Standards Institute is not the relevant authority.

Not having access to the Standards Act of 1962, I then contacted the City of Windhoek (where the property is situated) and was informed the Occupational Health and Safety Section of the Health Services Division is involved in the registration of businesses and the approval of building plans.  The most I could confirm with the Municipality that the building complies with the regulations at the time of sale and a building compliance certificate should have been obtained if the property ownership was transferred after 19 August 2011. These new regulations were introduced by the City in an effort to bring in a control system to enforce correct and approved building plans.

As the property in question was built before this date, it might be that certain elements in the building do not comply with the regulations. If this is the case, the City of Windhoek assured me that when the owner wants to sell such a property, they will have to rectify these issues.

Unfortunately, the investigation is not able to address the reader’s complaint and find a solution. However, we would like to caution our readers who might have properties to sell, that they as the present owner would be responsible for the cost of rectifying these mistakes when the wish to sell the property.

Credit Bureau to be regulated soon

The Bank of Namibia (BoN) announced on 29 August 2013 that the proposed draft regulations to regulate credit bureaus in Namibia are now open for public consultation. The BoN states “There has been recent speculation in the media around whether or not credit bureaus are illegal in Namibia. The Bank of Namibia’s view is that the existing credit bureaus in Namibia are legal entities registered in accordance with the relevant laws by the Ministry of Trade and Industry.

That means they are not illegal. What is missing in our legal system at the moment is a specific law regulating how these entities should manage the information under their care, and there is no centralized credit information system that allows banks and other lenders to know the total exposure per client and their credit history so as to avoid overextending of consumers.”

What is a credit bureau?

A credit bureau (sometimes called consumer reporting agency or credit reference agency) is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. Credit information such as a person’s previous payment of loans or accounts is a powerful tool to predict their future behavior. Through the collection of such information lenders such as banks and micro-lenders can assess credit worthiness, the client’s ability to pay back a loan. This information can also affect the interest rate and other conditions of a loan.

Present situation in Namibia

Currently Namibian credit providers are under no obligations to supply information to credit bureaus. It is against that background that the proposed regulations will seeks to establish rights and obligations of credit bureaus to be registered and licensed by the Bank of Namibia. It is also proposed by the BoN that all credit bureaus are to have a centralized system. Such a system should have the capability of calculating total credit exposure per client, and requires that all credit providers are to supply information to all credit bureaus. The Regulations also provide clear guidelines pertaining to the kind of data to be collected, the period of time information can be kept (retention period) etc.

Who are credit providers?

The Bank of Namibia has also defined who the sources of credit and non-credit information that are obliged to provide information to all credit bureaus that meet the qualifying criteria as set out in the proposed Regulations.

Credit providers

•          Commercial banks
•          Micro lenders
•          Retailers providing credit

Utilities

•          Regional Electricity Distributors (REDs)
•          Bulk water suppliers
•          Telecommunication companies

An organ of State, court or judicial officer

Information on Debt Judgments, non-payment of Maintenance or debt owed to a government department[1]

The regulations further states For the purpose of building data bases for SMEs, a credit bureau may collect and receive non-credit information from suppliers whose participation in the credit information system may be voluntary and the following categories are listed.

Local Authorities

•          Municipalities
•          Town Councils
•          Village Councils

Public Consultation Process

The Bank of Namibia is therefore inviting all stakeholders and most importantly the general public to present their input to the Bank of Namibia for consideration. The public members/stakeholders are advised to make written submissions on the entire Regulations by or before 26 September 2013.

Written submissions on the Regulations can be done on the Bank of Namibia website at www.bon.com.na, or if confidentiality is requested, comments can be emailed to ndangi.katoma@bon.com.na. Further queries pertaining to this can be directed Mr. Ndangi Katoma, Director: Strategic Communications & Financial Sector Development, telephone number 061-283 5114.

Milton Louw is a consumer activist that has been advocating the creation of a national credit bureau (with the necessary consumer protections) since 2006 in a submission to the Parliament of Namibia. He is the voluntary Director of the Namibia Consumer Protection Group and all opinions expressed in this article are his own.

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[1] Description provided by the writer and not BoN

How Government spies on you

((First appeared in Consumer News Namibia Magazine September 2013)

Many consumer around the world were not surprised to find out that governments all around the world have been spying on the people who use the Internet services provided by international companies such as Facebook, Google, Twitter to mention but a few.  Many of us believe that these requests were from governments in developed countries such as the United States of America or Britain. Consumer News Namibia Magazine decided to investigate these requests and see if there are any requests to the popular Facebook social site from within the SADC region.

International Awareness
Privacy is a fundamental human right, and is central to the maintenance of democratic societies. It is essential to human dignity and it reinforces other rights, such as freedom of expression and information, and freedom of association, and is recognised under international human rights law. Activities that restrict the right to privacy, including communications surveillance, can only be justified when they are prescribed by law, they are necessary to achieve a legitimate aim, and are proportionate to the aim pursued.

Surprisingly, two of our SADC neighbours, Botswana and South Africa have made requests to Facebook about users and their accounts. Botswana had made a total of 3 requests about 7 users, however no data was provided by the Facebook site. South Africa had made a total of 14 requests about 9 users but they too were denied any information by Facebook.

According to Facebook (https://www.facebook.com/about/government_requests ), Namibia had made no requests between the six months period of 1 January to 30 June 2013.

Looking at the newspapers over the past few weeks there has been more and more information being leaked about the interference by Governments in the private lives of their citizens.

International Consumer organisations such as Consumers International (CI) have realised for some time now there has been a need to update understandings of existing human rights law to reflect modern surveillance technologies and techniques. Nothing could demonstrate the urgency of this situation more than the revelations confirming the mass surveillance of innocent individuals around the world.

These organisations are signatories to the “International Principles on the Application of Human Rights to Communications Surveillance”

The Preamble to the principles reads:

In abbreviated form these principles are:

•          Legality: Any limitation on the right to privacy must be prescribed by law.
• 
  
•          Legitimate Aim: Laws should only permit communications surveillance by specified State authorities to achieve a legitimate aim that corresponds to a predominantly important legal interest that is necessary in a democratic society.
• 
  
•          Necessity: Laws permitting communications surveillance by the State must limit surveillance to that which is strictly and demonstrably necessary to achieve a legitimate aim.
• 
  
•          Adequacy: Any instance of communications surveillance authorised by law must be appropriate to fulfill the specific legitimate aim identified.
• 
  
•          Proportionality: Decisions about communications surveillance must be made by weighing the benefit sought to be achieved against the harm that would be caused to users' rights and to other competing interests.
• 
  
•          Competent judicial authority: Determinations related to communications surveillance must be made by a competent judicial authority that is impartial and independent.
• 
  
•          Due process: States must respect and guarantee individuals' human rights by ensuring that lawful procedures that govern any interference with human rights are properly enumerated in law, consistently practiced, and available to the general public.
• 
  
•          User notification: Individuals should be notified of a decision authorising communications surveillance with enough time and information to enable them to appeal the decision, and should have access to the materials presented in support of the application for authorisation.
• 
  
•          Transparency: States should be transparent about the use and scope of communications surveillance techniques and powers.
• 
  
•  ·         Public oversight: States should establish independent oversight mechanisms to ensure transparency and accountability of communications surveillance.
• 
  
•          Integrity of communications and systems: States should not compel service providers, or hardware or software vendors to build surveillance or monitoring capabilities into their systems, or to collect or retain information.

Namibia does not yet have a Consumer Protection Act, Electronic Transactions Act or Data Protection Act which many developing countries have already put in place. Thus one has to hope that these principles will be incorporated into the long-overdue legislation – and hopefully soon.