Monday, 16 June 2014

No longer the land of milk (or honey)

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

Recently the Economist newspaper also weighed in on the issue of fluctuating milk prices. “Milk prices on Namibian supermarket shelves are baffling local consumers. It used to be that there was a minor price difference between imported South African dairy products and the local brands, but this was usually in the order of one dollar or less.”
This issue has also been covered by the Namibia Consumer Protection Group (NCPG) when they proposed the 2013 Consumer Day be named “Namibia Milk Price Day”. The idea was for any Namibian consumer to buy a litre of milk and then inform the NCPG of the type of milk, the price they paid and where they bought their litre of milk.

The Consumer Action explained

This year 2013, the Namibia Consumer Protection Group (a lobby group and supporter of consumer activism) is asking people around the country to buy on 15 March 2013 a litre milk everywhere in Namibia, and then please post on the  website the price they paid and the store where they bought it. Perhaps we can we create awareness why we need a Consumer Protection Law and we can all see to what in-fluxed prices and irregularities exist in our own land of the brave. The idea is that every time you buy a litre of milk, you visit the webpage http://www.namibiamilk.com/ and upload your details.
The page will continue to operate for the next year to allow us to correlate data on what consumer throughout the country are being charged for this basic necessity.
Remember it iss easy, "You can report the price of milk online. Simply go to www.namibiamilk.com and click on the 'submit a report' button. Alternatively find us on Facebook by searching for Namibia Milk Price Day".
It is important that consumer in Namibia should start demanding their rights. The way it is going at present, we are simply made promises and none of them are being kept.

Update

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

What was even more surprising (and confusing) was how prices could differ IN THE SAME STORE on different days. The prices in a period of two weeks went up and down from a low of N$ 12.99 to a high of N$ 15.70. That’s right, the price went up, then down, then up again without any understandable reason.
The consumer is being ripped off as most of us buy our milk on a daily basis and do not regularly check the price. How often have you not rushed into a shop to buy a milk and bread and paid without checking the price?

Infant Industry Protection

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

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

The way forward

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


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

Sectoral Regulation and Competition


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

The Namibia Competition Commission (NaCC) held a workshop in Windhoek on 24 September 2013 to discuss the regulation of various economic sectors in Namibia. The issue of regulation is important from and political, economic, social and technical point of view. Through the efforts of various ministries and institutions, laws and regulations have been passed and has unintentionally created overlap in some areas while leaving blank areas where regulation might be needed. There is a growing realisation that there is need for a strategy towards better regulatory design and oversight within a framework of coordination. This will lead to better regulatory governance in terms of transparency, consultation and access to information by the public.
The workshop organised by NaCC aimed at deliberating existing issues in regulation with reference to other existing regulatory bodies in the country. These regulatory bodies include:
  • Bank of Namibia
  • Namfisa
  • Communications Regulatory Authority of Namibia
  • Electricity Control Board

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

Bank of Namibia

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

Communications Regulatory Authority of Namibia (CRAN)

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

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

Namibian Financial Institutions Supervisory Authority (Namfisa)

Namfisa is responsible for the regulation and supervision of non-banking financial institutions. These include pension funds, medical aid funds, friendly societies, long and short term insurance, investment managers, unit trusts, stock brokers and sponsors, the Stock Exchange and micro-lenders.
This function is commercialised with Namfisa (rather than a government division) to show the governments’ commitment to improve the financial soundness of the non-banking financial industry and to secure protection for all stakeholders in the industry, including consumers.

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


Wednesday, 4 June 2014

Is “Good Namibian Customer Service” an oxymoron?

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

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

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

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

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

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

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


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

Houses built in Namibia not always up to scratch

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

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

The reader states “I have recently moved into a complex that was built within the last four to five years. The previous tenants were students and therefore I accepted there were some shortcomings on the property and the landlord and I agreed to deduct the costs of renovations or replacements to the building that I may incur. Once I moved in I started realizing there were problems that were not made by tenants, but rather structural problems in the way the property was built. To name just a few:
·         The geyser outlet pipe on the first floor is directly above the back door on the ground floor. This means when the water overflows it drops directly over the backdoor leaving a pool of water. As the geyser is on the first floor, it is very difficult to get to the outlet pipe and will need a professional to fix this problem.
·         The backyard of the property has no drain at all. There are two taps for the washing machine and the washing machine outlet is there, but the additional tap in the backyard has no drain into which it flows. Further, as there is no drain, all the water has to drain out through the neighbours backyard through a very small opening. I am sure this will cause a major problem when the rainy season starts.
·         The stairway is to narrow and not high enough to pass a double bed upstairs. We had to hoist the bed over the balcony to get it into the bedroom.
I contacted the consumer and got the details of where the flat is situated and was able to get more information regarding the developers.

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

Thus the Namibian Standards Institute is not the relevant authority.

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

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

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


Monday, 2 June 2014

Credit Bureau to be regulated soon


The Bank of Namibia (BoN) announced on 29 August 2013 that the proposed draft regulations to regulate credit bureaus in Namibia are now open for public consultation. The BoN states “There has been recent speculation in the media around whether or not credit bureaus are illegal in Namibia. The Bank of Namibia’s view is that the existing credit bureaus in Namibia are legal entities registered in accordance with the relevant laws by the Ministry of Trade and Industry.
That means they are not illegal. What is missing in our legal system at the moment is a specific law regulating how these entities should manage the information under their care, and there is no centralized credit information system that allows banks and other lenders to know the total exposure per client and their credit history so as to avoid overextending of consumers.”

What is a credit bureau?

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

Present situation in Namibia

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

Who are credit providers?

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


Credit providers

  •          Commercial banks
  •          Micro lenders
  •          Retailers providing credit

Utilities

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

An organ of State, court or judicial officer

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

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

Local Authorities

  •          Municipalities
  •          Town Councils
  •          Village Councils


Public Consultation Process

The Bank of Namibia is therefore inviting all stakeholders and most importantly the general public to present their input to the Bank of Namibia for consideration. The public members/stakeholders are advised to make written submissions on the entire Regulations by or before 26 September 2013.
Written submissions on the Regulations can be done on the Bank of Namibia website at www.bon.com.na, or if confidentiality is requested, comments can be emailed to ndangi.katoma@bon.com.na. Further queries pertaining to this can be directed Mr. Ndangi Katoma, Director: Strategic Communications & Financial Sector Development, telephone number 061-283 5114.

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


[1] Description provided by the writer and not BoN