Neither a borrower nor a lender be

(This first appeared in the New Era of 14 January 2015)

The headline for this week’s column is borrowed from a soliloquy by Polonius in William Shakespeare’s Hamlet where Polonius is giving advice to his son Laertes before Laertes heads back to school.

“Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry.”

The past month I took my annual leave and I was fortunate to have it coincide with the birth of my son. I would strongly urge fathers (and lawmakers take note) to be there for your child's first few weeks or even months. It makes you appreciate the mother more, and sharing the sleepless nights and stomach cramps does wonders for your relationship. The best part must be the smiles you get for no apparent reason while you child falls asleep in your arms. This is the best investment any father can give and I trust the “return on your investment” will be worthwhile in the long run.

While on leave I noticed a public notice in the newspaper placed by the Namibia Financial Institutions Supervisory Authority (NAMFISA). In the advert, NAMFISA notified all Hire Purchase Outlets and Credit Grantors that the maximum finance charges as per the Usury Act of 1968 is 15.60 percent per annum. NAMFISA has as one of its objectives the protection of consumers of financial services and in this regard administers the Usury Act.

Few consumers fully understand what usury is, how the Authority regulates maximum finance charges and how the consumer can make use of NAMFISA to ensure they are not being overcharged (abused).

First, what is usury? Usury is the practice of making unethical or immoral monetary loans intended to unfairly enrich the lender. In plain English it means the lender is being made to pay too high interest on a loan. Thus the Usury Act is a law to prevent abuse of lenders and puts a maximum rate at which interest can be charged.

Some of the main objectives of the Usury Act, (Act No. 73 of 1968), are to regulate the maximum finance charges (or interest in short) and to ensure that terms and conditions of credit agreements, including Hire Purchase Agreements, are explained to customers and that fairness prevails in all contracts relating to all credit agreements.

In the public notice, Hire Purchase Outlets and Credit Grantors are reminded that the maximum finance charges or interest is calculated at the average prime rate times 1.6 which is currently at 9.75%. Thus the maximum interest that can be charged is 9.75 times 1.6 which equal 15.60 percent per annum.

Thus you as a consumer are protected under the Usury Act from any credit grantor (such as a money lender) from charging more than N$ 15.60 per year on every amount of N$ 100. If you are taking a loan for a shorter period such as a month, the interest rate must be divided by the percentage of the year the loan is granted. In other words, if you are taking a loan for one month, the interest may not be more than 15.60 divided by 12 thus 1.30 percent. If you have taken a loan from a money lender (and we all know how our January finances are), and are repaying at the end of a month, make sure they are not charging you more N$ 1.30 for every N$ 100 you are loaning.  Please note that certain lenders also charge administrative fees which are separate from the interest charged on the loan.

If you as a consumer have any queries, kindly contact the Microlending and Credit Agreements Department of NAMFISA at telephone number (061) 290 5000 (main), Ms. Lucrecia Lombardt at 061 290 5130 or e-mail: llombardt@namfisa.com.na.

Each One, Teach One

As the year comes to an end, I look back at take stock of what our consumer activism has achieved in 2014. Looking across the media spectrum, I am pleased to note that it is not only the New Era newspaper that has a consumer column. In addition, I appreciate the work being done by new media (mostly from within the traditional media houses) in bringing issues to the attention of consumers, activists and lawmakers. Facebook groups such as the Namibia Consumer Protection Group (NCPG) page have seen a drastic increase in postings, as well as feedback from business.

Now that there is more attention on consumer issues, the question must be asked: Has there been an increase in consumer protection during 2014?

The answer is (unfortunately) NO.

Allow me a few examples:

Just this past week, I ran out of credit on my cell phone. I was sent a reminder by my provider that my credit would run out – the warning though came one day before it ran out, not at the same time it runs out as in the past. At first, I was not too perturbed as I would notice after my first call on the next day that I was off the super package. However, the next morning I sent through my SMS request to purchase the package and went about my business as usual. That evening, I received a message that N$ 2.00 was deducted from my account for data usage. I immediately checked my phone as I had never received such a message before. On checking I found that the service provider had sent me a SMS that I could not participate in this offer as I was already on that specific package. Yet, somehow, later in the same day, my package expired. Now I was deducted N$2.00 and did not have enough funds for the super package anymore.

The service provider had changed my agreement with them regarding informing me of when my package rant out, and had started deducting an “automatic” data charge because my phone used data.

Definitely now a New Year’s wish of mine to get the Communications Regulatory Authority of Namibia (CRAN) to clamp down on these “profit” making practices.

In another example, I received the following from a customer:

“Shelve prices at a certain hyper store (name known to Consumer Court)  is a joke once you get to the pay-point (till). I had to request the cashier 4 times for 4 different products to charge me the price displayed on the shelf. I have had this experience several times at the same store and at others of the same chain. People are just paying without checking the price. I wonder how many people are robbed in this way on a daily basis. Every N$1 counts and makes up thousands of N$ on a daily basis. Even when you speak to the cashiers they are also acknowledging and complaining, because they are the ones to hear all the complaints and insults from customers.”

This same wholesaler had a complaint through Consumer Court earlier this year and they rectified it within a week. Now however, this same business is back and not doing what is best for the consumer. 

The question is thus, as consumer activists we have made the problem known in the media, however Namibian businesses believe (or know) that consumers have no legal recourse and this continue with this type of unethical business practices.

We as consumers must become more active and in the language of the liberation, Each One must Teach One. That is the only way to measure our success and get consumers to know their own rights.

Silencing others is not the answer in religion or politics

I was an Afroplitan living in Paris, France in 1995 during the Metro bombings. Yesterday I was once again watching the news of another religious inspired violent attack (on the media) in Paris. This reminded me of Voltaire, "I do not agree with what you have to say, but I'll defend to the death your right to say it."

This brings me ta an issue that has bothered me a lot of the past two years. I joined the Electoral Commission of Namibia (ECN) as the IT Project Coordinator in May 2013 and since then have had to face personal insults and verbal attacks on various social media. However, the moment I took issue with any personal attack (like on my personal Facebook page by a Namibia "investigative" journalist), I get reminded that I am an official of the ECN and should act more professionally.

Having been a social commentator since my student days I found it very difficult to understand that other people could confuse my personal life with my professional one. At one point I had to take out my "street manners" learnt in Hillbrow, Johannesburg and give some serious foul language to these characters that got into my personal life. I did not feel good about using foul language (even though it worked) but had to make a point of separating my professional life with my personal opinions.

The attach on @IamCharlie had me once again evaluate the way we as humans react to the opinions of others when we feel that it is contrary to our own. This was further brought to the for by the following post from a friend:

‪#‎DemocracyRules‬!
Rule #1: If you do not wish to be silenced, do not prevent others from speaking. 
Rule #2: If you do not want to be restricted, do not limit the movements of others.

This sentiment is not restricted to religions in Africa, but also the political parties. Most political parties (especially the "liberation parties"), have become a religion to their followers. Thus making a political party "holier than thou" and pushing a strategy of faith - even if you cannot see it you must believe in it.

I foresee that as long as we try to silence those who disagree with us, these type of senseless attacks will continue - whether the excuse is difference in religion or political beliefs.

The Seven Steps - understanding the Cape identity

(Taken from: http://blkrootsworker.blogspot.com/2012/03/seven-steps.html)

The SEVEN STEPS of District Six as a symbolic tool for understanding Cape identity

To anyone who has had an association with old District Six, the very mention of the ‘Seven Steps’ immortalised in Taliep Petersen’s musical ‘District Six’, stirs up deep emotions. The Seven Steps of stone worn by the thousands who climbed these to work, to home, to school, to play, to bok, to church, to mosque, to shop, to celebrate and to mourn, were part of the great big soul of the district. Today, so many years after its destruction, the Seven Steps stands out as the premier symbol of District Six. The District Six museum has it as an integral part of its brand and logo. There is a reverence at its mention – seven after all is God’s number. Seven is the dobbelaars ‘Lucky Number’.

The Seven Steps of stone worn by the thousands who climbed these to work, to home, to school, to play, to ‘bok’, to church, to mosque, to shop, to celebrate and to mourn, were part of the great big soul of the district.

District Six became Cape Town’s own Harlem. This Cape African Creole district on the edge of the city had its roots as one of the first settlements of freed urban slaves after emancipation. It was also the first home of African dockworkers from the Eastern Cape, sailors who jumped ship and poor European immigrants. The district grew over the years and became the cultural heart and soul of Coloured people. Some 40 000 people were living there. In 1966 the Apartheid regime began a forced removals process after declaring the colourful district as a ‘whites only’ part of the city. The forced removals, accompanied by wholesale demolitions saw the dwellings of the entire district raised to the ground. First Africans and then Coloured people were moved to the Cape Flats. The forced removals finally ended in 1986 when the last of the people were moved out. To add fuel to the fire, the district was renamed Zonnebloem - sunflower.

In the heart of District Six stood the seven stone steps which became one of those symbols of District Six that lives in the hearts of all who lived, loved, played and worked in the ‘District’. The seven steps became a powerful representation of popular memory.

The physical District Six is lost somewhere on the patch of earth and grass that remains like a gash on the body of our city. The District Six Museum is custodian of some of the old blocks of stone, the steps, and some pictures and paintings exist, but the greatest legacy symbolised by the seven steps is etched in our hearts. The spirit of District Six lives on.

There were seven stone steps in the heart of old District Six which holds a special place in the hearts of many and it is a powerful symbol of the heritage of Cape Town. The Seven Steps also speaks of the Seven Roots of identity in the Cape. The Coloured community in particular shares all of these roots of identity. (While some are comfortable with the term ‘Coloured’ many do not accept the term and feel uncomfortable with it, but no universally accepted term for people of mixed origins has ever emerged to find acceptance. I personally do not like the term and express myself as having a Cape Creole African identity as a South African, but I also do not shy away from using the term Coloured as it is more generally understood and used. Creole simply means ‘new creation’ or ‘locally born’).

Most people of the Cape from all population groups share two or more of the Seven roots. There is at least one of these roots in everyone and even the most recent to join us in this city and province has a place in these Seven Steps. Everyone had a place in old District Six and the Seven Steps stands out as a powerful symbol of diversity and inclusivity in the Cape. In applying the symbolism of the Seven Steps to our heritage, each STEP represents a root tributary to Cape identity as follows:

STEP 1: Represents the tributary of the INDIGENES. The people of the Cape have strong African roots. The San, Khoe and amaXhosa in the Cape and the baSotho and baTswana in western and northern reaches of the old demarcated Cape Colony are the first tributary of Cape identity. The Coloured people of the Cape have deep African roots with a number of traditional African communities, sharing ancestors and many elements of cultural heritage. History also shows us that communities such as the amaXhosa of today, share San, Khoe, Asian and European ancestors with Coloured communities. There is a strong cousin-connection across ethno-social boundaries in the Cape.

STEP2: Represents the tributary of the SLAVES. We are the descendents of Slaves from other parts of Africa and Madagascar, from India and from the Indonesian Islands. Over the period 1653 – 1808 over 63 000 slaves were brought to the Cape from these areas. Around 32 500 of these slaves came from Africa and Madagascar, 19 000 from India, and 11 500 from the Indonesian islands. Between 1808 – 1856 a further 8000 mainly African slaves were brought to the Cape as ‘Prize Negro’ slaves captured from slaver vessels by the Royal Navy. The locally born children and successive grandchildren of these slaves were all to lead lives of slavery until emancipation in 1836. For many ‘Prize Slaves’ emancipation only came in dribs and drabs right through to 1870 and the last slaves arrived in 1890.

STEP 3: Represents the tributary of the FREE BLACKS. We are descendents of the Free Blacks of the Cape – a category of people that once were poised to be a socio-economic group to be reckoned with in early Cape development, but later for a number of reasons became powerless. Early Mardijkers soldiers from Ambonya in the employ of the VOC, Free Black travellers, soldiers and sailors, the manumitted slaves, and freed black convicts all became part of those referred to as Free Blacks.

STEP 4: Represents the tributary of the EUROPEANS. We are descendents of a range of Europeans who intermarried with, or who had children with Indigenes, Slaves and Free Blacks. In the early founding years of the Cape Settlement the mainly German, Dutch, Swiss, Portuguese, French and Scandanavians were mainly male and took black partners. Many Europeans were also transient and never settled in the colony but left children behind. There were always Europeans, across the centuries, who had children with black partners and this carried on when the English, Irish and Scots arrived in South Africa. The Europeans settled and made their homes in Africa as a local people, but their bloodlines can also be found amongst indigene groups and Coloured communities, as much as indigene and Coloured bloodlines can be found in the descendent European communities.

STEP 5: Represents the tributary of the MAROONS. We are descendents of runaway slaves, Free Black rebels, mixed ‘Baster’ descendents of indigenes and slaves, non-conformists Europeans, escaped convicts, and eccentric missionaries. They became the freedom-trekkers who moved as far away from the reaches of the colonial government, long before the Boer Great Trek, to the long wild territory along the Garieb river in the north west, and to the amaXhosa territory in the east. Here these Drosters or Maroons mixed with Khoe, San, Xhosa and other indigenes and formed new groups such as the Orlams Afrikaners, the Bergenaar Basters, the Springboks, and the Griquas. Others joined the Xhosa armies and resisted both the Boers and later the British.

STEP 6: Represents the tributary of the EXILES & REFUGEES: We are the descendents of outspoken fighters and political leaders who challenged the Dutch, Portuguese, and Spanish in various territories in Indonesia and Polynesia. Indonesian Muslim resistance leaders were tried and banished into exile at the Cape; Peranakan Chinese from the Chinese resistance after the massacres of Chinese by the Dutch in Batavia; and Philippine refugees from the Phillipine Revolution - the Manillas, landed up at different times in the Cape and integrated into what was later called the Coloured population. In later years, to this day, new exile and refugee groups would continue to trickle into the Cape, make this place their home and integrate with other communities.

STEP 7: Represents the tributary of the INDENTURES & MIGRANTS: We are descendents of a range of people who were brought to the Cape as indentured labourers or who were economic migrants. After slavery was formally ended at the Cape, first the ‘Prize Boys’ were forced to accept indentureship as labourers, then farmers began importing indentured labour from the Congo, Malawi, Botswana and Mozambique. Most of these ‘Indentures’ were settled in the Drakenstein and integrated with both the Coloured communities and the amaXhosa who were working in the district since the late 1700s.

Already many of the freed slaves in the Drakenstein were those from East Africa known locally as the Mosbiekers. The Mosbieker pool grew as indentureship was continually extended over the 19th century.

From the 1840s and increasing in the 1870s right through to 1910 and beyond, large groups of people were brought in as indentured servants from St Helena. The Saints as they were known were also descendents of slaves, Chinese and British settlers on the island of St Helena.

In 1890 the Ormoro North African slaves (Somalia) seized from a slaver ship were brought to the Cape and these also integrated into Coloured and amaXhosa communities.

Also amongst the migrants were West Africans of the Kru tribe who had been employed by the Royal Navy in Simonstown for almost a century (1830 – 1930). These Kroomen as they were locally known also integrated into the Coloured community. Their grave markers can still be seen in Simonstown today. In the late 1800s the Royal Navy began recruiting Siddis and Zanzibaris from displkaced African communities scattered along the African and Indian coasts. Siddis and Zanzibaris like the Kru also integrated into Cape society.

Migrants and other infusions into the Cape society carry on to this day. Through our sea ports relationships have produced children with Chinese and other seaman of many nations. Economic migrants and refugees from other African countries still arrive daily and take their place among us as they always have. District Six was a key centre that became a microcosm manifestation of the coming together of all of these tributaries and the creolisation of cultures that gave us the rich and diverse locally born Cape African heritage that we celebrate today.

Milk is soon becoming a cost at my house

(First Published in New Era Newspaper - 17 December 2014)

The past two weeks have been extremely hectic at the Shaanika-Louw household. First it was counting the elections results that kept me from home, now baby has decided we must get ready for our new addition. We arrived at the maternity ward quite prepared as we both have children from previous relationships. However, baby has had other ideas. Since morning Monday, till now just after lunch on Tuesday, baby has decided to take a break. It seems it will take longer to have our baby than counting the elections results.

As part of my baby preparedness, I took my wife to the new mall that recently opened in the south east of Windhoek. It was a pleasant surprise to see so many brand name stores and one look at the prices of these items made me appreciate the value of competition. In one of the toy stores I was able to buy a present for our elder son of 11 for less than N$ 200.00. The exact same toy is available from local toys stores and large retailers for more than twice the price.

Thus, I look forward to continuing dropping of prices as we see more competition in the market place.
This now leads me to a conundrum - a confusing and difficult problem or question. If competition is good for me as a consumer when prices drop, when can it be bad for me?

As a previous promoter of trade for Namibia based at the United Nations Industrial Organisations office in Paris, France, we often complained about competition against our local business that forced them to go out of business. Many times I heard the argument we need to defend our Namibian industries and business against “unfair” advantage and tactics used by especially South African businesses. The examples are numerous where the power of size was used by such companies, for example cooking oil, toilet paper, foam mattresses, etc.)
In recent months I have approached by both sides of the arguments on “protecting local industry”. (The two commodities referred to is the fresh milk and the chicken market.)

The suppliers argue that they need protection from the outside producers because they only have a small market, and the large produces can afford to flood the market and the non-protection would lead to job losses. Consumers on the other hand argue quite rightly that when there is competition, then prices will come down and prevent monopolies from increasing their profit margins without due regard to the “market price”.

Having been on both sides of the “game”, I must now take a stand. Do I believe in market forces keeping prices affordable or do I believe in protecting jobs? Wrong!

That is not the actual question. We need to look at the industries concerned on an individual basis and then come to some recommendation.

The dairy industry used to consist of many producers supplying to dairies that were locally based. For example, in Rehoboth the farmers supplied their milk to the locally owned dairy. At Independence there were two main large dairies and they kept the market in balance. However, these two consolidated and became almost a monopoly. This large size meant they could use business tricks to get rid of competitors or put them into a position of having to either sell or close down their business. Today, this is the largest dairy and if I am correct, only dairy in the country. They even have their own super-farm to provide products to themselves.

This large company now wants to continue the production of the dairy industry because otherwise there will be loss of jobs and it is important to grow the Namibian economy.

I disagree. This monopolistic attitude is causing harm to our consumers and should not be allowed to continue. The Ministry of Trade and Industry must bow down to demands from large companies crying “infant protection” when they are neither infants nor protectors of the small and medium business owners in this country.

Access to adequate clean water is a right

(First Published in New Era Newspaper - 19 November 2014)

The past two weeks I have been facing a personal crisis at home. The water connection was cut off on 6 November and still has not been reconnected. At first, I felt like a politician slumming it out and showing I can manage for a day without clean, running water but was very soon brought back to reality. Without water you cannot flush your toilets, drink from a tap, shower or wash your hands. Everything is returned to a basic water access through a bucket or a drum. This made me think of the quote by Marcus Samuelsson, “Clean water and access to food are some of the simplest things that we can take for granted each and every day. In places like Africa, these can be some of the hardest resources to attain if you live in a rural area.”

I was upset with my water being off and contacted the City of Windhoek to give them a piece of my mind. They in turn pointed out that I have a rental contract with the price of water included, but that my landlady had not paid them for a few months. I contacted my landlady who stated that it was a billing problem as she paid via online banking and thus the error was the municipality. Well, back to the debtors department at City of Windhoek (CoW). After checking again, they insisted the error was with the landlady and not their billing system.

In the meantime, I was willing to pay the outstanding amount of around N$ 2,000 to get my water connected and would then just subtract it from the rent.

The landlady once again assured me that it was not necessary for me to pay as there was a billing error. However, I realised that this was not the truth as someone had been sent to deposit money on this account, but the CoW did not deem it sufficient to reconnect my water.

As a consumer, I was now being severely impacted by the landlady who as my service supplier was (and still is) not keeping her side of the agreement. Not only was I being deprived of an inherent right of the contract, I was also getting a lot of flak from my pregnant wife!

Looking at this as a consumer, what is my rights in a case like this where my water is caused to be cut-off by my landlord? The first thing to consider is that the issue is a civil case and is not governed by criminal law – which means I have no recourse to a police person to assist, but rather through the courts. Secondly, as the wronged party what cause of action can I take now to get my water reconnected, and thirdly how do I get compensated for the loss of water, time and the indignity of getting water from neighbours and friends?

As this is a civil case, neither party has recourse to the police – meaning that a difference on this or keeping back part of the rent is cause for getting the police involved. As the wronged party, I can decide to go to the CoW and pay the outstanding amount and then deduct this amount from the rental and submit the invoice for the water paid. The third part is the hardest, what should I be compensated for this wrong? I have looked into the matter and believe that any tenant has the right to deduct pro rata the amount of rent for each day the material aim of the contract is not kept by the landlord. In plain English, if I rent a property of N$ 6,000 a month, I may deduct an amount of 200 per day for the water being cut off due to negligence from the side of the landlord. In my case, the rent will be less by an amount of one-third (or more) as the water is still cut-off and the landlord insists that she has paid the water.
I would have just have preferred to have running water!

A happy customer is the best advertising you can get

(First Published in New Era Newspaper - 12 November 2014)

In everyone’s life there comes a time when you need “someone in your corner”. Being married has reminded me of how important it is to have support structures in place through friends and family – especially when you and the better half have different views or opinions on an issue. For me, after only a few months of marriage, it has been difficult lately because my work is very demanding on my time, as well as being a job in which I get to travel very frequently. This means that I have to make that extra effort to convince my wife that she is still the most important person in my life.

Last week I was fortunate enough to be a panellist at the Namibia Customer Service Awards and Conference hosted at the Polytechnic of Namibia. The topic for which I was invited to do a short presentation was “Customer Advocacy”. This term is used to refer to companies that focus on what is best for a customer. This might sound like just another gimmick, but is in fact a marketing technique which is used to encourage the sales person to better understand the customers’ needs and according to this philosophy, give advice to the customer even if it means less profit for the company. It also means finding the time of the day that the customer is most comfortable being called about a company’s products and services. In extreme cases it might even mean suggesting a competitors products as they can best suit the customers’ needs. For me, this sounds like customer heaven.

While on the panel, I also had an opportunity to discuss how that companies can measure this advocacy and its integration into their strategic goals through customer satisfaction, retention and profitability. A popular tool to measure this is the NetPromoter Score. The Net Promoter Score (NPS) is a management tool that can be used to measure the loyalty of a customer to a business. It can be used as an alternative to the traditional customer satisfaction research and many businesses who use it claims that it can be correlated with revenue growth. In other words, companies who use NPS state they have improved their profits through this process.

NPS is based on a direct question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale. Customers that answer with a high score (with a 9 or a 10) are considered loyal promoters. Detractors are considered to be customers that answer with a score between 0 and 6. The NPS is now calculated by subtracting the percentage of Detractors from the percentage of customers that are Promoters. The primary purpose of this score is to evaluate the loyalty of a customer to a specific brand or company rather than their satisfaction with a specific product or transaction.

What is interesting for a customer advocate (such as myself) is that through this scoring, companies can identify customers who are willing promoters and sales persons of the company – without getting paid? This is becoming very important in the modern world where most of our decisions on products and brands are being made more and more often based on the recommendation of a friend rather than the advertising prepared by the sales and marketing departments of a company. The value of advice given by a friend (or trusted source such as this column), is becoming more and more important when buying decisions are made.

For companies this means that making a customer happy, and encouraging them to make their voice heard is good for the profit of a company. Never before has the bad experience of a customer been so quick to be shared with others as it is being done today through social media. Customers have now got the power to share their experiences, both good and bad, within a few seconds of that experience.

Carpe Diem to City of Windhoek

(First Published in New Era Newspaper - 29 October 2014)

There is a Latin saying, Carpe Diem, that means Seize the Day. It can also be translated that you should enjoy the moment. Having been a bachelor for more than a decade, I had never really taken this advice to literally in terms of material possessions. Now that I am married and planning for a family (again), I have had to re-evaluate my future plans and need to start seizing the day. This is important especially in light of me wanting to have a house with a big yard in anticipation of my soon to be born child.

Having been married before, and owning at least three properties during those ten years, I eagerly started the process of looking for a suitable house that I would also be able to afford. And then reality struck. I live in the City of Windhoek which as the second highest increase in house prices in the world. Yes, that’s the second highest INCREASE in property prices in the World.

At first it did not strike me that hard when I heard the prices of erven sold by the Municipality went over a million dollars. After all, the area in which these erven were auctioned in a very luxurious area and has access to most of the important services such as schools, university, gold course, access to the western bypass, etc. Thus I heard about the prices and just shrugged my shoulders.

Last week, I happened to go past a property I had owned near the Polytechnic of Namibia and I saw a person standing in the driveway. Out of curiosity, I approached the person and found he was the “new owner” having just bought the house some three months before. I politely enquired about the price and that’s when the reality of our house price increases hit me. The owner proudly informed me that he had purchased the house at a bargain compared to other houses in the area – a bargain meaning he paid only N$ 1,240,000. He considered over 1,2 million a bargain?

Having been a previous owner of the house, I sat down that night and contemplated what this price increase means for me compared to what it meant for me in 1997 when I had originally purchased the property. In 1997, I was a Managing Director of a multinational company and bought the house for a purchase price of N$ 260,000. At that time my salary was around N4 18,000 a month and I could comfortably afford the monthly payments. Comparing the price increase in the property I tried to calculate what my monthly salary would have to be for me to comfortably afford the house now.

Can you guess how much I would have to earn now in 2014 to afford the property? I figured I would need to earn a salary of just over N$ 83,000 to be able to live in a similar fashion to what I did in 1997. I am sure that you must realise by now my salary has in no way increased by the same amount that the house price did.

I will have to now look for a property more within my budget – and I am not sure I will even find such a property now. But of course, I must cease the day otherwise the house will just become more elusive in the future.

I now took another look at the erven that were auctioned by the City of Windhoek. The prices were originally listed as “upset” prices – meaning that was the minimum that the CoW wanted to get as a return of their investing in the sewerage, roads, and other services. In other words, the CoW wanted to make at least the same amount of money that they had spent on putting the services in with at least a little bit of profit.

Surprise, surprise. The CoW made more than triple the expected price (in other words for every N$ 400,00 they spent, they made a profit over and above the costs of around N$ 800,00). The CoW has responded to the citizens inquiries by saying it is not their fault as the auction caused the prices to reach these levels. No. The prices were driven up by a basic economic principle of supply versus demand. There are very few erven available compared to the number of people that want to purchase the erven, meaning that the supplier of erven can cause the the prices to be pushed up by NOT supplying enough erven to meet demand.

Thus, the CoW as the supplier of erven (or non-supplier if you ask me) has caused the prices to steeply increase because they control the supply side of the equation. In any country, this would be a case of anti-competitive behaviour and the authorities would react to prevent this situation and its negative impact on the consumer. I hope that this will be looked into by the relevant authorities and they do something about the situation before none of us can afford a house in this city.

My compliments to the CoW though, they have seen an opportunity to increase their revenue and they have certainly Seized the Day.

Saving money through recycling

(First Published in New Era Newspaper - 22 October 2014)

As a married man, I had my first difference with my wife last week. The argument was over a rather petty issue (taking out the rubbish – is it a man’s job?). This however started me thinking about rubbish and the ways in which we dispose of it. I look around Windhoek and I am always glad to state that I live in the cleanest city in Africa if not the world. However, there are small signs that as humans we are such a consumer throwaway society that we will find ourselves with so much waste we will not be able to dispose of it in the traditional way which is to bury it. I think the efforts being made by the City of Windhoek, together with various service providers, to get residents to separate the various types of rubbish so they can be recycled should be lauded.

As consumers, I believe we must throw our weight behind such efforts and encourage all our fellow housemates, neighbours and work colleagues to become involved in the “recycle culture”.

As I finished taking out the rubbish (Yes, it is the Man’s JOB), I noticed the high number of 2 litre plastic cold drink bottles that were in the garbage. When I was little, these were always a huge source of amusement as we made various objects from them. These included pot plant holders, candle stands and of course my favourite, holders for fireflies. This led me to thinking not only about recycling, but also “reusing”.

Homemade Mosquito Trap

Many of us in Namibia are plagued by mosquitos and flies around our houses. Often we as consumer will go and buy a product such as a zapper, a wall plug that kills them or even spend hours looking to kill that one mosquito in our ears. While search on the Internet, I came across this really easy way to make a Mosquito Trap. All you will need is an old 2 litre cold drink bottle, 1 cup of water, ¼ cup of brown sugar and a little yeast (around 1 gram).

To make you trap start by cutting the bottle in half. Boil the water and mix in the brown sugar while it is still hot. Let it cool for a while until it is about room temperature. Now that’s it cold, pour the sugar water mixture in the bottom half of the bottle. Add the yeast (less than a teaspoonful works). You do not need to mix the yeast in the sugar. Place the top half of the bottle (the funnel) upside down into the bottom half. You can use cellotape to tape them together if you want. Now wrap the bottle with something black and leave the top uncovered. You are ready to place your mosquito trap in an area away from your normal gathering place (for example outside in the garden, behind the kitchen door, etc.)

The yeast will create carbon dioxide that will attract the mosquitos. In addition, mosquitos are also drawn to the colour black – something to think about when going out at night.)

Remember to change the solution every two weeks for continuous control.

This same type of trap can be made for bees and wasps by putting in a more sugary mixture and no yeast. Something that can come in very handy when having childrens’ parties with lots of cold drinks around.

Sexism in advertising should be boycotted

(First Published in New Era Newspaper - 15 October 2014)

I have been married (for the second time) now for 2 and a half months and still really enjoy having a better half. It is quite pleasing to note that some of our leaders in the musical and political fields are also following this route and legalising their union.

Since being married I have had the pleasure of having four of my five daughters come over and visit with my wife and I. Obviously, the change in my marital status means the children now come over and we spend quality time. The discussions are now more gender friendly as I now have the better half participating too.

This led me to an interesting observation regarding advertising and the sexist attitude of many advertisers who portray woman as subordinate to men. That’s right: women are still being sexualised to sell products. At this point in the history of Namibia we have come a long way in woman’s rights issues – just look at the zebra style nomination lists – but somehow still ignore the sexist attitudes being portrayed to our consumers. I don’t wish to generalise, but I believe this is also playing a role in the way some men treat women. According to the 2013 Namibia Demographic Health Survey it was found that forty percent (40) of men and 35 percent of women in Namibia believe that it is okay for a wife to be slapped by her partner for reasons such as burning the food, going out ‘without permission’ or refusing to have sex.

Looking at international studies of women’s magazines, it was found that more than 50% of the advertisements portrayed woman as objects. In these adverts, women are portrayed as submissive and the men as strong, dominant and aggressive. Media (especially visual media) plays a very strong role in how we view each other and ourselves. This images that sell a product or service are indirectly influencing what we believe to be the “right way of doing things” without us taking a critical look at whether these images are the best we wish to portray of ourselves.

According to an article in New Era in February 2014, “over 1 200 men and 240 women have been murdered in the last five years in gender-based violence cases recorded with the police. On average 204 men and 48 women were murdered each year as victims of gender-based violence (GBV). Most alarmingly, the actual number of murders in the period under review comes to 1 565 when juveniles are included in GBV cases.”

I am not so naïve that I believe advertising can make a man slap a woman, but I do believe advertising messages can reinforce our incorrect actions towards others by selling us the idea that this is what a “man does”.

Advertising companies worldwide spend over N$ 60 billion a year attempting to tell you how to think or act. You should be critical and not allow yourself (or your children) to become consumed by these media stereotypes. You are not only the consumer of products and services, but also of the advertising messages carried by the various media outlets. If you find anything offensive on television, radio or printed media, contact the Namibian media ombudsman and make your complaint heard. In this way we can ensure that our stereotyping in race, culture or gender does not get carried over into future generations.

“Heavy exposure to media alters the viewers perception of social reality in a way that matches the media world." - Levin & Kilbourne

You must be in it, to win it

(First Published in New Era Newspaper - 8 October 2014)

This week I was a delegate at the Namibia National ICT Summit hosted by the Ministry of Information and Communication Technologies in the capital. On the first day of registration I looked through the programme and noticed a prize-giving that was to take place in the afternoon after the close of all the activities. It also stated that you participate by completing the consumer survey form and handing it at the Telecom stand. Two of my colleagues and I were at such events previously and have always seen someone else walk away with the prizes. Nevertheless, we filled in the survey form and handed it in at the stand. We had left it a bit late and were not expecting much. Imagine our surprise when then they called my first colleague, then the second colleague to come fetch their prizes. Even more astounding was when they read my own name out as a prize winner.

What is the probability of three colleagues handing in their forms and all three those forms are drawn as prize winners? It turned out not to be anything about probability but rather certainty. You probably guessed by now that out of all the professionals attending the event, only three people read the programme and handed in their evaluation forms. So thank you organisers for my new dual SIM telephone.

This reminds me of a saying from a friend that goes, “You must be in it, to win it.”

While at the ICT Summit, I also had the opportunity to question the Communications Regulatory Authority of Namibia (CRAN) about an issues that has been a pressing concern of mine since 2009. Back then, I approached the then Namibia Communications Commission (NCC) about the idea that number portability be implemented. Number portability would mean that your telephone number would belong to you and you would keep this number even if you switch from one telecoms service provider to another. In 2012, the CEO of CRAN, stated “The Communications Regulatory Authority of Namibia (CRAN)) is mandated to establishing a numbering plan and to require mobile number portability by 2013.”

My question this week was thus, “When is CRAN implementing number portability?” The officials from CRAN answered me by explaining the process and what they are presently doing, but did not answer the crucial question of WHEN.

For the past fifteen years most countries around the world have opened their telecommunications markets to competition (which also means implementing a national numbering plan). This proactive move by regulators has accelerated the deployment of telecommunications services more quickly and cost-effectively than the state owned monopolies were able to achieve.. For example, the European Union (EU) Universal Service and Users' Rights Directive (2002/22/EC), Article 30 - effective since July 2003 - imposes on all EU member states the following obligations:

“Member states shall ensure that all subscribers of publicly available telephone services, including mobile services, who so request can retain their number(s) independently of the undertaking providing the service:

·         In the case of geographic numbers, at a specific location; and

·         In the case of non-geographic numbers, at any location.”

Obviously consumers understand that CRAN should look at the costs/sustainability or other issues that may affect the service providers as it is most likely that these service providers will pass these costs on to us as end-users. 

However, I would like to point out that the power granted to the consumer that allows them to change providers (without changing their number) will force cheaper prices and better service which is the primary reason for the establishment of regulatory authorities that need to “take into account consumer needs.”

A rose by any other name would not smell as sweet

(First Published in New Era Newspaper - 1 October 2014)

I am a very recently married man and am still living the honeymoon. However, the other day I had to stop and think about something that I have only noticed since I got married. I remember when I was growing up, my grandmother had a fridge that seemed to be there from the time I was in primary school till I left for university. That fridge played a part of my life (and those of my siblings and cousins) for at least fifteen years. Recently I was buying furniture for our home and noticed that the life span of the appliances seemed very short compared to what I remember.

This complaint is quite common especially about fridges, washing machines and even the smaller appliances like kettles and toasters. Thus, my grandmother’s fridge which was bought more than 30 years ago is still in working condition, while the average life of modern fridges is not more than 5 years.

Many times consumers blame manufacturers because they believe the manufacturer will make faulty products, product with short life spans, etc. so that the consumer will buy another product thus making them more money.

Recently I read an argument that gave me a completely different perspective. In the article the writer argues that this statement by consumers would mean that “manufacturers intentionally work against the interest of the consumer. While the observations of consumers correspond with reality, their explanation of this phenomenon is wrong. I want to stress that the producers of consumer appliances are unjustly blamed.”

After reading the article, and doing some more market research, I have to agree with the writer. Many consumers are of the opinion that the manufacturers of goods will make the product that is “best for us”. This thinking means we believe as consumers that the goods we buy will last longer, be of higher quality and possibly be of lower price.

Obviously this cannot be the truth. After all, the many Chinese products are aimed at the low quality market and many customers buy these products even though there is often no “money-back” or other guarantees. So we must understand that the market (manufacturers, retailers, etc.) produce and sell products that consumer are willing to pay for, and try to do this as efficiently as possible to allow them to make the maximum return.

In plain English, manufacturers are asking themselves two main questions, namely, “What exactly do consumers want?” and “What do they pay for?” before they make the products.

What most manufacturers will tell you is that they will do market surveys / research and from this decide what it is consumers want. From personal experience as an enumerator (collector of information for surveys), I know that most people lie about what they want and what they actually buy. For example, we all want a car that is low on fuel and easy to maintain. However, when we buy, we will probably buy the car that we find good-looking on the inside and gives us the “wooma” when we drive.

Thus we must conclude that producers are trying to understand how we make our decisions about what we buy – in other words what values we as customers give to particular qualities such as price, functions available, durability, etc.

This means that as consumers we are more likely to buy a cheap, good-looking fridge that might not have the long-life we pretend to want. So whose fault will it be that the fridge I buy now does not last as long as the fridge my grandmother bought?

So next time you buy an appliance, consider your purchase as an important choice that needs due diligence. Compare the price, the functions you want it to perform, and for how long you want the product to last. It will be worth your time and effort in the long run.

If wishes were horses, beggars would ride

(First Published in New Era Newspaper - 24 September 2014)

The past few weeks I have been reminded about an old English proverb/nursery rhyme that goes: “If wishes were horses, beggars would ride; If turnips were watches, I'd wear one by my side; If, If's and And's were pots and pans, there would be no need for tinkers.”

My grandfather often told me this while growing up and he meant for me to understand that it is useless to wish on something as better results will only be achieved through actions. Of course, I always had a dream in my head and believed that one day my wish would turn into horse (and I also thought the rhyme said thinkers rather than tinkers). The past few weeks one of my wishes did become a horse: A small lump sum of money came to my wife and she was able to invite me on a shopping spree. We started by purchasing all the main furniture such as fridge, microwave, deep freezer, bed and matrass, as well as completely new pots, pans, cutlery and the Russell Hobbs toaster and kettle. We even had enough left over to buy that big screen television, television decoder and the George Foreman grill. I have never understood “retail therapy” but am now convinced this is an exercise that can really bring pleasure as long as you do it with cash and not a credit purchase which creates a monthly payment.

Yep you read it right, I suggest retail therapy or shop till you drop – IF you can do it with cash in hand and not on credit.

After our purchases, it did a precursory look at the furniture we bought and the monthly payments that we would have to pay if it was bought on credit. If we had purchased for an amount of N$ 28 999, our deposit would have been in the region of N$ 2,900 and our monthly payments would have amounted to N$ 2,184 per month for 24 months. If you add this up, our purchase would have cost us a total of N$ 55, 316. You should read that again. We would be paying interest and other charges to the value of N$ 26,317. That means if we had paid this over the normal 24 months we would be paying almost double the value of the furniture. Phew. Finance charges are expensive.

When we as consumers wish to purchase goods or products, we often do not have the money readily available to pay for our goods in one go. Therefore, retailers have come up with the concept of consumer credit which means the creditor or seller trusts the consumer enough to provide us with the goods and services we desire and expect us to pay off this amount at some time in the future. In exchange for this service (which is in fact lending the consumer money to buy from them), the supplier of credit is allowed to charge a certain amount of interest on the amount they have lent to you as the consumer.

Governments (as well as religions) have recognised that the consumer is at a distinct disadvantage as they are in the position of wanting, and would probably do almost anything to get the product or service. The credit supplier can in this case charge a very high rate that would in fact be unethical or even be considered immoral. In cases like this, the term we use for such practices is called USURY. The government, through the Namibian Financial Institutions Supervisory Authority (NAMFISA) is the organisation responsible for regulating these types of transactions. If you have purchased any goods or services through a credit agreement and you feel that you might have been overcharged when the interest and other charges are added, you should contact the regulator and make your complaint heard.

Consumer Protection Act of Namibia

(First Published in New Era Newspaper - 16 September 2014)
 

This week I was really struggling to get a topic to write about for Consumer Court. It felt to me that everything I have written till thus far about consumer issues was falling on deaf ears. That was until I was stopped on the street by a person I have never met before. The man was driving past me and waved to me, then pulled over, reversed and rolled down his window to talk with me. The first thing he said was, “Thank you for the great job you are doing”. I immediately thought he was referring to the organisation where I work as I was wearing a corporate branded golf shirt. “No”, he continued, “I mean the work you are doing with your weekly consumer column in the newspaper.”

It turns out he has been an avid follower of my articles since I started writing in 2011 and had even used some of the advice to his own monetary advantage. My day was made. I once again felt that through this opportunity of the consumer court column, a difference was being made. So, please next time you get good or excellent service please tell the person or organisation that you appreciate their effort to make you a happy customer.

During my conversation with this stranger, we also touched upon the Consumer Protection Act and what the Ministry of Trade and Industry hopes to achieve with this legislation.

What is consumer protection?

Consumer protection refers to all the laws (and the organisations tasked with consumer issues) that are made to ensure that the rights of consumers as well as fair trade, competition and accurate information about products and services is made available to consumers. The main purpose of such laws is to prevent business that engage in fraud or specified unfair practices from getting an advantage over their competitors. They often also include additional protection measures for the most vulnerable members of society. The laws also spell out the consumer complaint procedures that business must follow as well as the punishment they can expect if they do not adhere to these laws. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions.

The Consumer Protection Act (which is the current process that the Ministry is involved in), will probably include the following provisions:

·         It will promote a fair, accessible and sustainable market place for consumer products and services;

·         Establish national norms and standards to ensure adequate consumer protection;

·         Give guidelines for improved standards of consumer information that will prohibit unfair marketing or other unfair business practices;

·         Encourage responsible consumer behaviour; and

·         Establish the National Consumer Commission

The law will also define which other bodies (such as the Competition Commission, NAMFISA, Bank of Namibia) are tasked with specific areas that will not be covered by consumer issues in this law.

It is hoped that the Competition Act will also look at how consumer are represented and how the government will assist these consumer representative bodies (financially, technically, etc.).

I would also like to see that the Namibian law includes a provision for a small claims court that will allow consumers and business with civil issues (differences on who owes whom money), to be able to have legal rulings without the present prohibitive cost that involves legal professionals.

As a consumer activist I must add that I hope the Ministry follows through with this important process and we see this act before the end of 2015.

“Nommer Asseblief” (Number Please)

(First Published in New Era Newspaper - 10 September 2014)

A few months ago, my wife and I were discussing our wedding and how we saw married life. My fiancé surprised me by asking that I please install a landline at our house after we get married. The first though on my mind was, of course, with the bad service we are receiving from our mobile telephone companies I cannot blame her. I was rather surprised by this request and even more by her answer: I just want to answer the landline by saying, “This is Mrs Shaanika-Louw speaking”.

The ability to communicate is today no longer a privilege but a right. Each and every one has the ability to get a telephone without waiting weeks, or even months (and yes, sometimes years in the rural areas) for our local telephone service provider to install the lines and the hardware to allow us to communicate with the outside world.

In Namibia, the ability to connect our population was not developed by a private company as in most western countries, but rather a government department that was tasked by the political leadership to get the people connected. In Namibia, even the creation of a mobile network and mobile service providers is also spearheaded by government owned companies.

Internationally, consumer groups have realised that the telephone companies (telcos) are making heaps of money without taking into consideration the rights of their consumers. In many countries it is because there is a lack of competition in the industry, or simply that the government appointed regulators are not doing enough to support the rights of the consumers. This has become such a burning issue that Consumers International (an international federation of consumer organisations) decided to dedicate World Consumer Rights Day on 15^th March 2014  to highlight the consumer issues that are undermining and frustrating the success of mobile phone services.

This week I want to take the chance to acquaint you with what are the rights/benefits we as consumers of telephone services should be getting:

·         TELCOs must provide consumers with access to an affordable, reliable service - Consumers want to be able to have access to affordable telephone 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.

·         MTC and Telecom must provide consumers with fair contracts explained in clear, complete and accessible language - Consumers often feel cheated by their telephone service 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.

·         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. There have been regular complaints to this column that the service of the TELCos is non-existent in a specific month – but the consumer is still expected to pay the full rental / usage fees.

·         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/data 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.

·         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. AND please, tell me once that irritating automated service at Telecom is taken down. I cannot argue with the poor defenceless box that answers.

The above rights are encapsulated in the Consumer International statement for World Consumer Day and can also be accessed via their website.

RING-Ring – The user you are trying to reach has been disconnected for being impolite to our level of service. ;-)

Ask what your country can do for you

(First Published in New Era Newspaper - 27 August 2014)

I have been working for a government institution for the past year. This has been the first time in my career spanning over twenty years that I have been a ‘public servant’. Over the years I have heard (and even contributed to the conversation) stories about the laziness of the government service and the un-helpfulness of public servants. Now that I am working in one of these institutions I have realised that these stories are more urban legends than actual fact. Many public servants, from the street cleaners in Windhoek to the election officials in the remotest parts of our country, are doing their best to deliver the service that is expected from a government.

Looking at consumer issues, means we should also look at the largest service organisation in Namibia, namely the Government of the Republic of Namibia (GRN).

The GRN launched the first Public Service Charter was launched in 1997 and then expanded to its present ten principles that form part of reform designed to provide professional, efficient, effective end economic services.

This week I will look at some of these principles and invite you, our esteemed New Era readers, to look at them and write to us at Consumer Court about any of these principles you have seen first-hand being followed or ignored.

Standards – These must be published and monitored – allowing consumer access to the standards public servants are expected to uphold.

Courtesy and helpfulness – yes, this means a “good morning” or “how can I help you” when speaking to us the consumers.

Accountability – each consumer should be able to identify who at a GRN organisation/ministry or agency (OMA) has provided the service. To allow such identification each government employee working with customers should wear a name badge.

N0n-discrimaination – this is not only about race or gender, but also about understanding that some consumers might not of the educational background to be able to fully explain their needs. This is about taking time to “know your customer”.

Value for money – Each GRN employee is expected to efficient, effective and affordable services. Efficiency meaning that our time as customer and service provider is well used, effective meaning we get the result we expected when asking for a service and affordability referring to our purchase price of such service or product from GRN.

Information – The availability of information on services should be provided in a prompt straightforward and open manner that is readily understandable by all consumers. This also opens a small crack on the wider debate of public access to information at the OMA’s.

Consultation and participation should take place regularly to take into account the views and needs of the public.

Transparency – I quote, “Disclose how public services are managed together with the cost and performance of specific services which are open to public scrutiny in all actions taken in public office”.

Quality of service includes appraising consumer of the complaints procedures, feedback methods and how corrections will be made.

The Public Service Charter end with the principle of accessibility and refers to the provisions of the needed services where the consumer are situated. In other words bringing government service to the people.

As a public servant, even I had to question myself on how many of these principles I actually adhere to in my work. Sadly, I was only able to honestly state that wile six of the principles were adhered to by myself, I was clearly lacking in four other areas.

The main reason thus for this week’s column is thus to fulfil the principle of INFORMATION. I wish to encourage each and every consumer of government services to question any GRN employee (starting with myself) on the services we provide and how you can access them to ensure an improvement in your quality of life in our Land of the Brave.

Warm beer, lousy food, bad service

(First Published in New Era Newspaper - 20 August 2014)

The past week I have been fortunate to travel through some parts of Namibia as part of my job. We started in Otjiwarongo where training was taking place and I was really impressed by the level of service that was provided at hotels, lodges, restaurants and even the large retail chains. (Have you ever seen the cleanliness of Shoprite in Otjiwarongo? You must then wonder why this level of service and cleanliness does not exist in the Windhoek branch.) On Sunday I decided to travel to Swakopmund via Omaruru and Karibib. Upon entering Omaruru, I was impressed with the main street where every house and business seemed to have a fresh coat of paint. The business community of the town must be recommended for their strategic vision of making the town an oasis of artists, which has obviously increased the tourism numbers of the town.

While traveling on the roads I had to commend the Roads Authority in their efforts to upgrade and maintain our roads. Our road network throughout the country is the envy of many visitors, even those coming from some European countries.

Upon my arrival in Swakopmund I headed straight to the Municipaly bungalows where I am booked for the week. After checking in I was pleasantly surprised by the service assistant who automatically deducted 10% from the quoted price as they were busy renovating and the DSTV had not yet been installed (even though it was advertised). The bungalows were clean and one could sense the renovations were part of a regular routine to prepare for the coming December holiday season.

As I had just become a married man some two weeks ago, I had arranged for my wife to also join me in Swakopmund so we could at least spend some quality time in the evenings after work. (Yes, I am a bit of a workaholic and even go into the office while on holiday – like I did for an important meeting the day before my wedding.) Being a “difficult customer” which always expects the highest standards and gets deeply disappointed when these are not met, I was in for a surprise in this sleepy town of Swakopmund.

On Sunday evening I decided to get some seafood and thought it would be an easy thing as it was the weekend and very few customers would be around. Surprise, surprise. All the restaurants were already full by 06:15 and most of them had a waiting list of over 30 people. That’s right. There were busloads of tourists who were also not yet accommodated and they had actually booked.

As a last resort, I headed to Kuki’s Pub in the Central Business District. It was very busy with a waiting list of groups, but upon enquiry (and stating we were only two and on honeymoon ;-), the waiter arranged a small table close to the kitchen for us. Being a person of colour I was a little bit intimidated by the fact that every other person there was Caucasian and seemed to speak German. However, I did not for one minute feel that the service was secondary and had an attentive waitress who regularly checked up on us. The meal of oysters and seafood platter was probably the best I have ever had, and it had a great deal to do with the service I received. “Warm beer, lousy food bad service” is the motto of Kukis and while it is a great slogan, the slogan could not be further from the truth.

After Kuki’s – which is after all a “touristy place”, I was sure it could not get better. On Monday however I was once again surprised when I visited the Village Café in the main road for brunch. Upon entering, the waitress gave us a pleasant greeting and offered us various areas of seating. Every waitress that we passed smiled and greeted like we were old friends and even had my wife guessing that I was probably a regular that was well known. In fact just the opposite – I had not been to a Swakopmund eatery in over four years. The best part of the menu was for me being able to order a cup of coffee in a Village Mug, or “blikbeker” as we grew up calling it. The food was excellent, the freshly squeezed orange juice divine, and the service quality made me wish I could stay in this holiday town a lot longer. (The only pity is that the Village Café web page has a redirect loop and cannot be viewed on the Internet.)

As consumers we tend to only complain about the bad service, products etc. and hardly have a good word for the truly exceptional service industry which does sometimes exist in our Land of the Brave. This week I wish to thanks each and every customer service agent for the wonderful service that some provide.

As I am finishing this article I am sitting in Café Anton sharing a cheesecake and a cappuccino with Mrs Shaanika-Louw and the waiter politely asked if I need the password as they have free wifi. I must be in a little piece of service heaven.

Ignorantia Juris Non Excusat - Ignorance of the Law Excuses No One

(First Published in New Era Newspaper - 13 August 2014)

Dear Consumer Court,

I was very upset today when I received an SMS message informing me that I had a debt with the City of Windhoek and that I should please make a plan to pay. They gave a reference number as well as a bank account number and requested I pay at least a minimum of N$ 100.00 as part of a payment plan. I do not know of any outstanding account with CoW so contacted the number given on the SMS. The debt collection company informed me that they have been given all the debtors of CoW and they have me with an outstanding account for ambulance services. Unfortunately they did not seem to have the date of the account but were very insistent that I should start paying at least a small amount to get the debt settled. After going through my own records, I found that I had gone to hospital over 8 years ago and this could be the only time that I could have used an ambulance of CoW. My question is, “Can the debt collection company still force me to pay as they say they will put my name on the blacklist if I do not?”

I have never received an account from CoW since the incident and had no idea that they were putting me on their blacklist. I am now also worried that CoW will not allow me to open a water and electricity account etc. until I pay the debt.

________________________________________________________

One of the readers of Consumer Court contacted me the past week complaining about a debt of over 8 years old that she was now being forced to pay. The debt collection company had informed her that she had the outstanding account for ambulance service from the City of Windhoek and if she did not pay, they would be blacklisting her name.

I contacted the debt collection company and was quite speedily assisted in getting in contact with their manager. After explaining the situation, the manager told me that the CoW had given them the debtors book, but had not provided them with the dates from which the debt originated. I immediately realised this was a tricky situation, whether on purpose or not, I do not know.

I have previously written about old debt and the fact that most debtors are not aware that a debt that is older than three years can be defined as prescribed debt.

According to the South African Prescription Act 68 of 1969 - which is also valid in Namibia, a debt is prescribed when the debtor is no longer liable for it. The “tricky” thing about this law is that the consumer must first know about this law to be able to raise the Prescription Act as a defence. A well-known quote states that “Ignorance of the law excuses no-one”.

I have previously researched this law and found very little assistance from regulatory authorities, and even less from the debt collectors that should be aware of this law. Even worse to me is that there is no debt counselling services of any note anywhere in Namibia that can assist the financially illiterate consumer.

So how does prescription work? If after three years, a consumer realises that a creditor wants to collect the debt, but they (the debtor) has not acknowledged the debt nor has a court of law summoned the debtor, the consumer can apply for prescription. (Please note that this is also valid if you have not paid any amount on the account for at least three years.)

As the consumer, you must inform the creditor (or debt collector) that the amount owed is prescribed and they are therefore not able to insist upon payment. For legal purposes, the consumer must also raise the case for prescription with the courts by sending a registered letter stating that they believe the debt has prescribed. It is very important to note that no-one can do this for you. Only the consumer can raise a case of prescription.

To put it in plain English: If you have an unpaid account that is older than three years since your last payment and the creditor has not tried to collect this debt, then your debt has become prescribed and you no longer are responsible for the account. Be aware, that the court may dismiss your case for prescription if you fail to prove that the statement was paid or that a summons was not provided.

Read that last sentence again! If you have made a payment (even after 3 years) the account becomes valid and you are liable to repay the creditor.

In our case this week, the consumer contacted me before making the payment of N$ 100 and can now insist that her debt has become prescribed and she is no longer responsible for the debt.

This week I must say shame on the City of Windhoek (and other unscrupulous debt collections) that know the debtor is no longer liable for the debt under prescription, but they trick them into making a small payment again which now keeps the debt alive.

In this case, ignorance of the consumer is blessedness for the creditors.

Good service is good business

(First Published in New Era Newspaper - 6 August 2014)

Last week I was invited to address the Consumer Complaints Management Symposium held in Windhoek. The theme of the symposium was “Bridging the Gap between Industry Relations and Consumer Care” and the participants came from various industries including financial services, tourism, health care and state-owned enterprises (SOEs).

What amazed me the most that was that all the participants were the designated “consumer champion” and were there to find better ways to engage with their clients as well as getting their organisations to embrace client feedback as an integral part of doing business. This was shocking to say the least. How many times do we not hear that Namibia does not have a culture of service? I myself have in fact gone on record a few times in this regard through my various writings.

Yet here were representatives from these various industries requesting me to assist them in dealing with consumer complaints in a better manner. I hope this is not the first or last of such corporate interventions and hope to see a positive result within the next few months.

So this week, I share with our corporate readers some tips on how they can deal with consumer complaints.

1.       Make sure you listen to the concerns expressed by the consumer. Most times concerns over an issue (such as shelf pricing, cleanliness of the premises, etc.) can be handled without it becoming a complaint.

2.       Make sure that you record the consumer’s name, address and contact number.

3.       Acknowledge that the consumer has a valid concern by getting further details on the issue.

4.       Do not take the complaint personally – this could result in you feeling attacked – which is not the case. A consumer has to take time out from their schedule to inform you about the issue, the least you should do is see it from their viewpoint.

5.       Allow the consumer to explain the problems without interruptions. This will show you are not trying to make excuses before they have stated their case.

6.       Ask questions to get a better understanding of the issue and its cause. In some cases the consumer will even give you a possible solution to the issue they have raised.

7.       Have an understanding of how the consumer wants the issue resolved. The resolution can be in the form of a replacement, refund, exchange or discount on the price.

8.       If the form of resolution is possible, explain the time it will take to process the complaint and what will be needed to make it happen.

9.       Explain to the consumer that your company values all feedback from its clients.

10.   Follow up with the consumer on to find it if the resolution was to their satisfaction.

The most important part about resolving a consumer complaint is that you will have turned a “bad mouthing advertiser” into a champion of your business and the satisfaction level you have instilled in the consumer.

Remember: “Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.”

Certain Dog brands can make your pet sick

(First Published in New Era Newspaper - 30 July 2014)

Foodcorp (Pty) Ltd is the South African holding company for a group of businesses engaged primarily in the production, marketing and distribution of food. There are seven production units which fall within the Foodcorp (Pty) Ltd group, these are: Grocery, Milling, Baking, Pie, Fishing, Beverage and Speciality division. Foodcorp also supplies retailers in Namibia with brand name products such as Nola condiments, Ouma Rusks and Yum Yum peanut butter.

One of its subsidiaries, Foodcorp Pet Foods has recalled several batches of its dog food, following reports of it making people's pets ill. According to the company's Facebook page, (https://www.facebook.com/FoodcorpPetFoods) the brands affects are Bobtail, Dogmor and Bonzo dry dog foods with a manufacturing date from 4 June 2014 to 23 June 2014.

It must be noted that Pick ‘n Pay’s No Name Brand dry dog food, as well as Shopright's Housebrand and Ritebrand are affected in the recall.

The most common reaction is that your dog will refuse to eat the pellets, but if they do, they may show signs of nausea and even throw up the food. According to Megan Power, a Twitter reporter, the chemical responsible for making the dogs throw up is deoxynivalenol, also known as vomitoxin.

While the company has told pet owners that "Your pets are of utmost importance to us as well, that is why we are dealing with this issue in the most aggressive manner possible," according to Megan Power the company initially wouldn't  disclose the no-name brands affected in the dog food recall, citing contractual agreements.

For more information you can follow Megan Power on Twitter, check out Food Corp's Pet Foods Facebook page, phone the company on 011 411 5555 or email them on enquiries@foodcorp.co.za

(Information from Times Live, Facebook and Twitter)

Caveat emptor - "Let the buyer beware"

(First Published in New Era Newspaper - 23 July 2014)

Last week, Consumer Court received a complaint from a customer regarding a fridge she had purchased from a furniture store but it had started giving problems within a month of purchase. She found herself in a situation where the retailer disclaimed any responsibility on a product sold as “the manufacturer is responsible for defects in materials or workmanship”. The consumer (rightly) complained that she paid the retailer and not the manufacturer, but did not receive the help she hoped.

A follow-up was made with the furniture retailer as well as the manufacturer’s representative, but no reply was received by the time of this column. This week, I would like to explain what a warranty is, and when is a consumer able to find redress.

According to the dictionary, “a warranty is a guarantee given to the purchaser by a company stating that a product is reliable and free from known defects and that the seller will, without charge, repair or replace defective parts within a given time limit and under certain conditions.” In layman’s terms, a consumer expects to have a replacement of a product that is not working as expected.

However, we first have to look at the legal aspect of a warranty. Generally speaking, a warranty forms part of a contract between the buyer and the seller. In this specific case though, it is a product guarantee, meaning that the manufacturer makes the warranty to the consumer EVEN THOUGH the manufacturer and consumer have no direct contractual relationship.

And this is when the problems starts.

The furniture store (and most appliance retailers) state on their contract with the consumer that they only sell the goods and do not accept responsibility for any Defects in Materials and Workmanship. This simply promises that the manufacturer properly constructed the product, out of proper materials and further implies that the product will work as products of that type are expected to work.

Manufacturers have become very clever in their language and often provide a time limit warranty rather than a performance warranty. In other words, this manufacturer has a 2 year warranty from the date of purchase during which the consumer must prove that the fridge was defective when manufactured. If however, the fridge stops working in the 25 month after purchase (I have owned a fridge for over ten years), the consumer cannot claim on the warranty.

The problem for our complaining consumer though is that this is not helping her to get a fridge that works. The only way she could enforce the contract is if she hires a lawyer (at a very high cost) and makes a civil case against the manufacturer. Even then, the customer might still lose, or not be able to afford the lawyer after winning.

This is why there is need for a Consumer Protection Act, or at the very least, a Consumer Ombudsman that can assist consumers in having these type of problems addressed.

On the funny side, I visited the website of the manufacturer and tried to find out about their promised “for service on appliances still under the 2 year warranty” but could find no mention of it on the written pages of the website. Having a bit of IT background I was able to access the website code (which is what search engines do) and was able to find a hidden block of text claiming that customers can “Contact our After Sales Centres for service on appliances still under the 2 year warranty” and giving the times, centres and telephone numbers to contact. Just a pity that an ordinary consumer clicking on the site will never see this information.