Hage Geingob must keep his promises

The Namibian - 28 Feb 2013

It is not the minerals of Namibia on the south west coast of Africa that makes the country special. No. It is the tolerance of its people. After more than a century of colonial rule and racial segregation it is a role model of cultural assimilation while maintaining multiculturalism. This interculturalism appreciates the qualities of our various cultures, within a framework of universal human rights. The intercultural social contract practised in Namibia expects us to give authority to not only political and civil rights, but also to give a legal framework for the economic, social and cultural rights of all our people.

To paraphrase Julius Nyerere, we have to “face the basic fact that human values can only be measured in regard to individual human beings. The Government is properly instituted among men not to secure the material or cultural advantages of a few, but to promote the rights and welfare of the many.”

Three years ago, on 15 March 2010 (World Consumer Day), the then Minister of Trade and Industry, Honourable Hage Geingob, promised in a speech read on his behalf that a Consumer Protection Act will be submitted to Parliament within one year. Since then Dr. Geingob has moved on to become the Right Honourable Prime Minister and is poised to become our next President in 2015. With Consumer Day again being celebrated on 15 March this year, there is however still no sign of the promised Consumer Protection Act (CPA).

This year, the theme of World Consumer Day is “Consumer Justice Now”. As Namibians we must push for our legislature to put in place a CPA as soon as possible as good consumer protection is not only about legislation, but it can also deliver justice, create a fairer society and even save lives. The United Nations Guidelines for Consumer Protection (UNGCP) act as an international reference point of the consumer movement and can be understood to be

·         the right to the satisfaction of basic needs

·         the right to safety

·         the right to be informed

·         the right to choose

·         the right to be heard

·         the right to redress

·         the right to consumer education

·         the right to a healthy environment.

I have made a short list of the main issues I believe should be included in the Consumer Protection legislation:

1. Consumers have the right to cancel a reservation or pre-booking for any goods or services and to cancel any order for any goods or services.
2. Consumers may cancel a fixed-term agreement (of any term) at any time.
3. Suppliers must provide a quote or estimate prior to working on any goods.
4. The rendering of services or the goods required to perform any service must be in a manner and of a quality that persons are generally entitled to expect and be free of any defect.
5. The CPA must impose strict liability on producers, importers, distributors or retailers to supply safe goods and imposes strict liability in respect of product failure, defective and hazardous goods.
6. A mandatory three-month warranty period must be imposed on service providers who install any new or reconditioned part during repair or maintenance work.
7. A consumer is entitled to return unsafe or defective goods, including goods that are not of a good quality.
8. A consumer who is the recipient of unsolicited goods or services is not obliged to pay for such goods or services
9. Consumer must have the right to cancel a transaction or agreement emanating from Direct Marketing.
10. Goods or services must not be promoted in a misleading, fraudulent or deceptive manner.
11. The CPA should also create a “Small Claims Court” for matter under N$ 50,000.00.
12. Lastly, and most importantly, the legislation should create and support national consumer organisations to promote and provide consumer literacy education.

These are issues that have been talked about with the Ministry of Trade and Industry officials and various national forums, but no concrete action has taken place. I hope the Right Honourable Dr Geingob will hear my plea and keep his promise to get our consumer legislation submitted to Parliament as soon as possible.

Understanding Banking

First printed in Consumer News Namibia magazine - Feb 2013 edition

Let me start by repeating the words of a friend who is a banker in Windhoek, “banking is the profession with one of the best marketing departments around. Imagine trying to convince the first customer that their money was safer with the bank than in their own hands, and best of all, which the customer would need to pay fees to deposit and withdraw their own money.”

Even now during the financial crises throughout the world banks are still succeeding in motivating clients to give them their money. Today, most of us feel safe with our money in banks because “we are many and government will not let it fail”. The term “moral hazard” is used to explain why we take these risks.

All over the world people often complain about banks. This ranges from bank fees, interest charged, to repossession of vehicles and homes.

In Namibia this is no different. The late Hon. Reinhard (Kalla) Gertze, Member of Parliament, proposed an investigation into the financial institutions through public hearings of the Parliamentary Committee on Economics, Natural Resources and Public Administration. They held public hearings on bank charges and regulations in 2006 in Windhoek. One of the submissions outlined why interest is charged.

Why is interest charged?

In the beginning of banking, interest was used to offset the risk of providing the credit to the borrower. There are four risks (hazards):

• The costs incurred by the bank while providing the loan had to be repaid;
• Inflation means the lender will be able to buy less for the money as time passes;
• Scarcity – in other words once it is lent to a borrower at a specific rate, it cannot be used for another loan;
• That the borrower cannot pay back the loan

Of these four, the only real difference the government can make is in reducing the risk of borrower’s inability to repay.

Being a client of a bank

Banks and their branch network is a convenience. We can put our own money into an account, send money to someone else, and apply for a loan. As consumers, we realise that we need the services of a bank to increase our money. In other words, we need someone else’s money to pay for things like a car or a house, or even start a business.

But there is probably nothing as frustrating waiting in a queue at a bank “waiting for own money”, or dealing with an employee who is rude to us when we need to ask a question. If you are a client of a bank you have five basic rights, as well as five responsibilities.  These should be seen as an agreement between the banks and the Namibian consumer on how we treat one another.

1.                  You have the right to be treated with respect and dignity.

This means every employee of the bank should treat you with dignity and be respectful of your cultural and gender. This also means they may not be abusive when collecting overdue monies.

2.                  You have the right to decide which services or products you want to use.

You need enough information on the banks products to be able to choose the right one for your needs. This means the bank employee may not pressure you into a choosing a product you do not want.

3.                  You have the right to receive clear, truthful and complete information – as well as the time needed to make your decision

The bank must give complete information and answers to all your questions so you can fully understand the terms and conditions of the services and products you choose. The staff member serving you must give enough of their time to ensure you understand the relevant information about the product. This should include information such as total cost of borrowing, cost of transactions, penalty fees (if any), and possible alternatives that might benefit you.

4.                  You have the right to be heard

You are allowed to complain. When a service does not meet your needs, or any of your rights have been violated, you have the right to inform the bank immediately. The bank should have a customer hotline that will allow you to provide them with feedback – and they will benefit from being able to deal with the problem as early as possible.

5.                  You have the right to privacy

Your personal information must be kept confidential between you and the bank employees dealing with your account. No one is allowed to disclose your personal information without your permission.

Have some manners, please

The Namibian 21 Feb 2013

Last year I dislocated my knee while visiting in Windhoek. It happened while I was crossing the street on a Monday afternoon. This was an old sport injury from my days of ice-skating, rollerblading and probably further irritated by my recent bungee jumping. Thus it is something that I can only blame on my carefree younger days without heeding the safety advice of my elders.

A friend was with me at the time and called the emergency number of the cellular network and we were quickly and efficiently helped to get in contact with the hospital services. Within half an hour the ambulance was there and I was transported to the Katutura State Hospital. Having heard so many scare stories about the cleanliness - and lack of service – I was rather worried about actually getting sick at the hospital.

However, I must loudly declare my fears were largely unfounded. Of course the hygiene in the emergency room was rather scary – especially for those of us who never land in such situations – but the service was exceptional. I was helped within a reasonable period of time and was given very good service by the doctor on duty. The trip to the Windhoek Hospital for the X-rays was a little bit crowded, but nevertheless I received the necessary treatment and examination.

The operation was the next day (as it was surgery day) and all went well. I stayed for two weeks and received good, healthy meals and pain medication almost every time I asked. The nurses were friendly and attentive and I never felt neglected though I stayed in a public ward that had extra beds in the corridor area.

When I was discharged, I received an account of only N$ 30.00. Wow. Reasonable service, good price.

I must add to the story that my step mother was a Staff Sister for many years at the hospital, and, on the last day of my stay, Andimba ya Toivo visited my hospital bed. This however was not known upon my arrival or during the initial part of my stay.

As a consumer we often complain about good service but rarely compliment the good service when we get it. From the time of the operation, the nurses made it a habit to stop at my bed and ask about my recovery. When I left and thanked them for the good service and for being patient with me – after all I am just as much a baby as any man when he is sick.

The nurses then told me something that made me think. They said it was a pleasure to have a patient like me. They had been overwhelmed that from the first day I had greeted them every morning and every night and gotten to learn their names. In addition, I had assisted one or two of them with personal problems (housing applications) and even helped one of the Sisters with her homework.

The nurses told me that when they found out my step-mother had been a nurse it had no additional effect in how they treated me. They had come to enjoy being told “please” when I wanted something and “thank you” every time they gave me something or even when they just made my bed. They also noticed how I had made friends with all my ward colleagues and shared my drinks and presents with those who were far from home. As one nurse told me, “It is a pleasure to help someone who appreciates what you do for them.”

It is their work to help us, but do we really appreciate the long years of study and patience it takes to deal with all our impatience and the stress we take out on them because they are “beneath us”?

All it takes is a little bit of good manners from each of us to make this a better place to live in. Next time someone gives you something, remember to say thank you. It is a habit that can only make your life better too.

BTW – that is the story how I lost my front teeth while fallinand why I now look like a Cape Coloured. LOL.

Show me the money

The Namibian 14 Feb 2013

Millions of dollars are laying unclaimed with banks, pension funds and insurance companies. I have been informed that these companies believe it is the responsibility of the deceased to have informed the relatives of the policy of other benefit that the relatives are to receive. In turn, they insist, it is the responsibility of the beneficiary to claim their monies. Nonsense, I say! The company has been entrusted with a duty which must be kept.

In last week’s column I discussed the opportunities to be had by entrepreneurs in the assistance of customers. Many people are not aware of their rights and thus lose out on possible savings on products and services. An even further disturbing business practice is the non-payment of death benefits. After all, (a business might argue), the person has passed away and would not be aware if their loved ones had received the money they had worked so hard to put aside. Each and every person in Namibia has the right to find out if they have been left an inheritance, whether it is property, money or even a prized possession. Most of us presume that such matters will be taken care of after our deaths – but very few actually make sure there is enough information about our financial dealings so that our relatives or executors can make these divisions according to our wishes.

A typical example came to light recently when a friend of mine had a death in the family. The deceased was a pensioner and had received their pension money less than a week before the passing. My friend was given the responsibility of managing the financial costs of the funeral and decided to use the account of the deceased to finalise matters. Now, unfortunately, one of the other relatives had access to the bank card and had withdrawn the last monies left from the pension – and even left a negative balance. Upon enquiry, my friend was requested to provide a death certificate and proof of being the executor before he could access the particulars of when and where the money was withdrawn. The “missing” money was less than N$ 300.00 and my friend wondered if it really was worth the effort. Nonetheless, he provided the paperwork to the bank and was given the bank statement.

And this is where we come to an interesting discovery. One of the bank employees asked my friend why he had not requested for the death benefit of the account to be paid out. The employee explained that all bank accounts carried life insurance - and they charged it as part of bank fees on the account. Upon enquiry it turns out that all accounts with the bank had an automatic death benefit of N$ 2,500.00. When I heard the story I was amazed, as I am not even sure if my bank provides the same service. Or whether I am paying for this service and am not aware of it?

This brings another business opportunity to light. “Inheritance Tracing”. Not many of us have the financial knowledge, or even the time to check whether there is money not being paid out which rightfully belongs to us. Thus an inheritance tracing agent can assist consumers with checking with all financial institutions such as banks, insurance companies, etc as well as with the appropriate authorities (for example the Master of the High Court). In addition to tracing, there is also an opportunity to provide consumer education on matters pertaining to their last wishes. We might not like to think about our deaths, but we must do our utmost to ensure we do not bring more misery to our relatives through our passing.

If you have a bank account, funeral policy, shares or other financial instruments, make sure they are all listed with a person who you can trust. This can either be a financial advisor (insurance broker, etc.) or speak to your bank about their services in case of your death. 

Legal Insurance for Namibians

First printed in Consumer News Namibia magazine - Feb 2013 edition

The cost of taking legal action can be prohibitive. Could you afford to claim compensation if you were injured in an accident, unfairly dismissed from work or had a dispute with a business?

A friend of mine has had legal insurance for the past three years and believed he was covered. About a month ago, he was accused of being involved in a theft syndicate at his work. He immediately called his legal insurance company, but was informed they do not cover criminal cases. He was taken for a polygraph test (is that even legal in Namibia?), and informed that he had failed the test. This led to him leaving the job that morning to go speak to his legal insurer.

An guess what the legal insurance company tells him? They inform him they do not cover the expenses for a labour case either.

WHAT is it with insurance companies that do not want to pay claims? If you complain at NAMFISA they can do very little to help.

If I am going to buy legal insurance I expect:

Bail Assistance

•         Bail negotiations and applications on members’ behalf

•         Depositing of the bail amount/issuing of bail guarantee on behalf of arrested member

In other words, I must know that if I a accused of a crime that I have instant legal assistance when I am arrested and the legal representative shall do everything in their power to have me released on bail. In addition, my legal insurance will cover a ceratin amount – for example bail up to N$10,000.

Civil Law

•         Bank and insurance matters

•         Blacklisting

•         Building and construction matters

•         Contractual disputes

•         Debt collection

•         Letters of demand

•         Litigation

•         Personal injury claims, etc

I I should find myself in a case where I am accused of wrong doing by an individual (civil meaning between two parties), I hope my insurance company will cover all the types of cases, as well as assist when I wish to take another person or company to court in a civil case.

Criminal Law

•         Fraud, theft, robbery or assault

•         Arrests

•         Bail applications

•         Consumer issues

•         Driving under the influence

•         Reckless driving

•         Search warrants, etc.

This area is where most legal insurance companies are doing proper cover. This is of course the area that scares most citizens. But, in all probability, this is the area which legal insurance companies know are used the least – but do wonders for advertising.

Family Law

•         Ante-nuptial contracts

•         Custody disputes

•         Divorces

•         Family violence matters

•         Interdicts

•         Maintenance disputes, etc.

Being able to handle family affairs privately and confidentially is very important for every consumer. This area of law also calls for the ability to settle disputes within the family about legal matters.

Labour Law

•         Dismissals

•         Disciplinary proceedings

•         Pension payout disputes

•         Restraint of trade agreements

•         Retrenchments

•         Unpaid wages

•         Working condition

In the employment arena we are often caught out either not knowing our rights, or thinking that we actually do when we don’t. Our legal insurance should allow us to get quick assistance, especially in cases where we need advice before following any course of action that could be detrimental in the long run.

Surely this is not too much to ask from your legal insurance company?