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New Era Newspaper Tuesday January 30, 2018

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10 Inside BUSINESS Tuesday, January 30 2018 | NEW ERA AG’s office shoots down N million settlement allegation Edgar Brandt Windhoek The Office of the Attorney General has come out guns blazing following an article in a local weekly newspaper that alleges the Attorney-General offered to pay N million to an aviation company to prevent a case from going to court. The article, published in the Windhoek Observer, alleges that Attorney-General, Sacky Shanghala, was considering payment to Expedite Aviation after it demanded compensation following the arbitrary cancellation of an agreement with the Tsumeb Municipality to jointly develop, control and run the Tsumeb airport. While the details of the case may not be discussed in public or in the media as the case is still ongoing, Deputy Government Attorney, Marius Boonzaier, in a letter to the Editor of the Observer, Kuvee Kangueehi, explained that a court case can only be settled between the parties involved and an instruction to settle can only emanate from a client duly advised. “Further, out of court settlement has always been and will continue to be a consideration in any litigation and your depictions notwithstanding, will not erase this facet of legal practice from occurring,” reads the letter. Boonzaier claims that the gist of the article is that the Attorney- General is in breach of his duties and the he ‘callously, wantonly regularly and without regard to the merits of the matters at hand insists on settling matters in exorbitant amounts to the detriment of the State and in a manner depicting him to be incompetent or otherwise incapable of handling the matters which are under his purview as the Attorney-General’. “It is readily apparent from the unsubstantiated, vague and false allegations that you knew (or at the very least should have known), as you went to publish that: The Attorney-General never communicated to/with the CEO of Tsumeb local authority at any time whatsoever in respect of this matter; the Attorney-General never communicated to anyone GRN’s intention to settle the matter out of court; and the Attorney- General has opined expressly, in contradiction to the position you now accuse him to hold.” Boonzaier therefore requested the Windhoek Observer to prove that the Attorney-General communicated with the CEO of the Tsumeb local authority on this matter and to prove that the Attorney-General made up his mind to settle the matter contrary to the position held by his office. Boonzaier added that failure to provide the requested proof as well as failure to retract the ‘unfortunate article’ will result in the Office of the Attorney-General taking a stance to “further pursue its options to restore the public confidence in its head and its constitutional functions, which we believe are critical to the continuation of the growth of a democratic culture and the rule of law in the Republic of Namibia.” The Windhoek Observer received a written warning from the Office of the Attorney-General on January 23, 2018, to retract the statement. The AG’s office was adamant that failure to retract the statement borders on contravention of the sub-judice principle, which states that once legal proceedings become active it is a criminal offence for media to broadcast or publish material that would create a substantial risk of serious prejudice to the proceedings. Bank of Namibia awards eight bursaries Staff Reporter Windhoek The Bank of Namibia last week awarded eight bursaries to undergraduate students as part of the Bank’s corporate social investment and responsibility policy initiatives. The focus of the Bank’s bursary scheme is to make a meaningful contribution to the country by developing skills and strengthening the capabilities in the fields of Economics, Accounting, Auditing, Banking, Information Technology and Education specialising in Mathematics and Science. To a bright future… BoN bursary recipients with Deputy Governor Ebson Uanguta and Human Resources Deputy Director Shirene Bampton. Photo: Contributed To date, the Bank has provided 84 undergraduate bursaries to deserving candidates who would not have otherwise been able to afford tertiary education. This excludes 22 beneficiaries who are currently studying under the bursary scheme. Some of the successful graduates that went through this scheme are in leadership positions at the Bank while others ply their trade at other institutions, thereby making significant contribution in the development of Namibia. This year’s beneficiaries were selected from a pool of more than 800 applicants. The successful candidates (and their chosen fields of study) are: Meriam Kakuwaezi - Actuarial Science at the University of Cape Town; Pombili Shivute - Economics at the University of Stellenbosch; Oscar Taapopi - Chartered Accounting at the University of Namibia; Faustinus Muyenga - Economics at the University of Namibia; Grace Matabele - Economics at the Namibia University of Science & Technology; Diinineni Mwatukange - Education at the University of Namibia; Munionganda Kaujeua - Economics at the University of Namibia; and Innocent Pieter - Economics at the University of Namibia. Speaking at the event, Deputy Governor, Mr. Ebson Uanguta said: “As a central bank, we recognise that capacity building and skills development are fundamental to realising a knowledge-based economy as envisioned in our national development plans. It is for this reason that we continue to invest in a bursary scheme in highly sought areas, to support our young talented people to become knowledge workers upon graduation”. Last year, the Bank, for the first time, awarded two bursaries for postgraduate studies to students who are not staff members of the Bank. The expanded bursary scheme of the Bank will continue this year with beneficiaries expected to be announced soon. The Bank of Namibia says it remains committed to playing its role in building the appropriate human capacity to propel Namibia’s economy to greater heights. Bank Demand Guarantees provide businesses peace of mind in uncertain times • Anton Smit OPINION Daily, businesses in Namibia and around the world enter into agreements for the sale or procurement of goods or services. With it, comes the accompanying risk of losing money from services or goods not delivered. The reality is that losing money can cripple a thriving business, or worse, force its closure. To make matters worse, it takes time, effort and money to try and recover losses through litigation which may not be successful. So how does one deal with this very real threat? One solution to buffering such a potential risk is obtaining a Demand Guarantee from Bank Windhoek. A Demand Guarantee provides contracting parties with peace of mind. This is how Demand Guarantee works: A client will approach Bank Windhoek and provide details of the contract that has been entered into with the beneficiary of the service. The Bank will then issue a Demand Guarantee to the client’s’ named beneficiary; the client’s contractor or supplier. In the event of the Bank’s client defaulting under the contractual agreement with the beneficiary, the beneficiary will simply submit a written demand to the Bank in order to receive payment. A guarantee is independent of the underlying contractual relationship, and the Bank is in no way concerned with or bound the relationship in any way. What this means is that the Bank is obliged to honour claims made by the beneficiary, despite any contrary claims or defences arising from the Bank’s client. Here are some of the seven commonly used types of Demand Guarantees: Tender Guarantee/Bid Bond: This guarantee secures a client’s tender commitment. It pays out on demand by a beneficiary should a client default on the tender submission requirements. Performance Guarantee: Secures a client’s contractual commitments and pays out on demand by a beneficiary when client defaults on the terms of the contract. A prerequisite in terms of the Procurement Act, is an example for both the Tender and Performance Guarantee functions. Retention Guarantee: Mostly implemented in construction projects. A beneficiary can demand payment when client does not rectify faults identified during the warranty period. Credit Facility Guarantee: Used to secure a facility granted by a creditor - pays out when client does not honour payments of the facility. For instance, your company extends “un-secured” credit terms to a client and they fail to pay. Small, medium and large retail and commercial business, regularly make use of this form of guarantee. Payment Guarantee: Its purpose is to secure payment for goods. The Payment Guarantee pays out on demand by a beneficiary when client fails to honour contract. Advanced Payment Guarantee: Mostly used in construction projects, its main purpose is to secure prepayment made by a beneficiary to enable a client to start work. Lease Guarantee: Commonly used by landlords, it forms as a deposit for a lease agreement instead of paying over cash money to a Lessor (beneficiary). Clients thus earn interest on own money. Bank Windhoek’s Demand Guarantees provide business owners, big or small with the peace of mind to make that next deal without any concern. We pride ourselves to keeping abreast with the latest international developments. As such, the Bank’s Demand Guarantees are subject to the International Chamber of Commerce Uniform Rules for Demand Guarantees Safeguard your business today and mitigate the risk of losing money from services or goods not being delivered or provided. *Anton Smit is Executive Officer for Credit at Bank Windhoek Anton Smit

Tuesday, January 30 2018 | NEW ERA Anglo American sells thermal coal project for R850 million JOHANNESBURG Anglo American plc on Monday announced the sale of the New Largo thermal coal project and Old New Largo closed colliery in South Africa to New Largo Coal, a consortium owned by Seriti Resources and Coalzar, for R850 million cash, or approximately US million. Seriti and Coalzar are two companies majority owned and controlled by historically disadvantaged South Africans and the Industrial Development Corporation (IDC). New Largo is located in Mpumalanga province and its principal asset is the approximately 585 million tonnes coal resource, with the related mining right that is well-positioned to supply Eskom’s new Kusile Power Station. New Largo thermal coal project was 73 percent owned by Anglo American subsidiary, Inyosi Coal. Deputy chairman of Anglo American South Africa, Norman Inside BUSINESS 11 Mbazima, said he was delighted by the sale of New Largo to a new majority black-owned-and-managed company. “Together, Seriti, Coalzar and the IDC have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future,” Mbazima said. “The sale delivers on our longstanding strategy to exit our Eskomtied coal assets and marks another Anglo American led step-change in the sustainable transformation of the South African mining industry, supporting both Eskom and the country’s transformation objectives.” The transaction, which is expected to close in the second half of 2018, is subject to conditions customary for a transaction of this nature, including regulatory approvals in South Africa. – Nampa/ANA Star Alliance enhances round the world fare product Staff Reporter Windhoek A whirlwind globetrotting trip, stopping only at two destinations for at least 24 hours, is now possible using selected Star Alliance Round the World (RTW) fares. Up to now, a minimum of three stopovers was required for all RTW tickets. This change increases the number of itineraries available under the RTW product for travel on the Star Alliance network. “By enabling round the world travel with only two stopovers, we are increasing the attractiveness of the Star Alliance Round the World fare product. Customers will now find it easier to build their bespoke routing choosing from the vast offer provided by our 28 member airlines, operating more than 18,400 daily flights, connecting 1,300 destinations in 191 countries,” said Janice Antonson, Vice-President, Commercial and Communications, Star Alliance. RTW fares are generally an attractive value for money proposition, especially when compared to individual one-way tickets on separate airlines for the same journey. The total price of an RTW ticket is dependent on class of travel, the precise itinerary, mileage and routing selected, as well as currency exchange rate fluctuations. In terms of distance, customers can create an individual itinerary covering up to 26,000, 29,000, 34,000 or 39,000 miles. To put these levels into perspective, the circumference of the Earth measured at the equator is approximately 24,901 miles. Customers can build their own routings within the maximum mileage of the selected fare level. Travel needs to begin and end in the same country and be in one direction, either going East or West, although some zigzagging is permitted within a single continent. Both the Atlantic Ocean and the Pacific Ocean must be crossed once. In addition to building an itinerary from scratch, customers can also choose from a range of themed RTW journeys, which include World Food, World Wonders, Architecture Hotspots, Nature Trail, Aquatic Wonders, Connecting Cultures, Natural Wonders, Sports Hotspots, Wine Tasting, Romantic Journey and Luxury Lifestyle. In this case, the tool automatically loads a suggested routing, which the customer can adapt to his or her needs. Stopovers of at least 24 hours must be made in a minimum of two cities and the overall itinerary may include up to 15 stops. As part of offering greater choice to RTW travellers, certain RTW special fares are also available, requiring at least three stopovers and allowing a maximum number of stops that range from five to 12. The Star Alliance RTW fares are available for travel in First, Business, Premium Economy or Economy Class and are valid for 12 months. More than half of RTW travellers fly in Business Class, more than a third opt for Economy Class and around eight per cent for First Class. The Star Alliance network was established in 1997 as the first global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. Implementation is key for Single African Air Transport Market – IATA Staff Reporter Windhoek MARKET OVERVIEW The International Air Transport Association (IATA) welcomes the launch of the Single African Air Transport Market (SAATM) initiative by the African Union (AU) to open up Africa’s skies and improve intra-African air connectivity. Enhanced connectivity will stimulate demand, improve the competitiveness of the African airline industry, and make air travel more accessible. In turn, this will enable higher volumes of trade, expanded tourism and growing commerce between African nations and the rest of the world. “The SAATM has the potential for remarkable transformation that will build prosperity while connecting the African continent. Every open-air service arrangement has boosted traffic, lifted economies and created jobs. And we expect no less in Africa on the back of the SAATM agreement. An IATA survey suggest that if just 12 key African countries opened their markets and increased connectivity an extra 155,000 jobs and US.3 billion in annual GDP would be created in those countries,” said Rapahel Kuuchi, IATA Vice-President for Africa. “We commend the 23 States that have signed up to SAATM. It is an important step forward. But the benefits of a connected continent will only be realized through effective implementation of SAATM—firstly by the countries already committed and also by the remaining 32 AU member nations still to come on board,” said Kuuchi. One of the main obstacles to the implementation of previous open skies pledges – the 1988 Yamoussoukro Declaration and 1999 Yamoussoukro Decision – has been the absence of an underpinning regulatory text. IATA welcomes the AU’s adoption of the regulatory text of the Yamoussoukro Decision (YD) – also the framework for SAATM – which covers competition and consumer protection and dispute settlement as these safeguard the efficient operation of the market. “Today’s decision is momentous. SAATM is a decisive step towards greater intra-African connectivity and delivers the framework on which to achieve it. Now it’s time to get down to the work of implementation. Greater connectivity will lead to greater prosperity. Governments must act on their commitments, and allow their economies to fly high on the wings of aviation,” Kuuchi said. Money Market Change Latest Selected NSX Stock 3 months 0.00% 7.13% Symbol Stock Name Spot % Move 6 months 0.01% 7.58% CGP CAPRICORN INVESTMENT GROUP L 1808 0.00% 9 months 0.01% 7.67% NBS NAMIBIA BREWERIES LTD 4000 0.00% 12 months 0.02% 7.91% BVN BIDVEST NAMIBIA LTD 785 0.00% Bonds Change Latest FNB FNB NAMIBIA HOLDINGS LTD 4658 0.00% GC18 (R204 : 7.05%) 0.06% 7.96% ORY ORYX PROPERTIES LTD 2060 0.00% GC21 (R208 : 7.42%) 0.10% 8.24% NAM NAMIBIAN ASSET MANAGEMENT LT 68 0.00% GC24 (R186 : 8.51%) 0.09% 9.73% NHL NICTUS NAMIBIA 189 0.00% GC27 (R186 : 8.51%) 0.09% 10.12% BMN BANNERMAN RESOURCES LTD 46 0.00% GC30 (R2030 : 9.03%) 0.10% 10.70% DYL DEEP YELLOW LTD 264 -1.49% GC32 (R213 : 9.1%) 0.10% 10.81% SILP STIMULUS INVESTMENT LTD-PREF 12129 0.00% GC35 (R209 : 9.43%) 0.10% 10.86% FSY FORSYS METALS CORP 125 4.17% GC37 (R2033 : 9.23%) 0.10% 11.23% TUC TRUSTCO GROUP HOLDINGS LTD 900 0.00% Commodities %Change Latest B2G B2GOLD CORP 3797 1.80% Gold -0.19% $ 1,346.57 Platinum -0.05% $ 1011.19 Copper 0.00% $ 7,085.00 Brent Crude -0.60% $ 69.75 Main Indices %Change Latest NSX (Delayed) -0.40% 1393.34 JSE All Share -1.04% 60,952.47 SP500 1.18% 2,872.87 FTSE 100 0.22% 7,682.42 Hangseng -0.56% 32,966.89 DAX 0.01% 13,341.27 JSE Sectors %Change Latest Financials -3.19% 17,727.95 Resources 0.81% 38,646.26 Industrials -0.75% 81,366.56 Forex %Change Latest N$/US dollar 0.87% 11.9655 N$/Pound 0.19% 16.8293 N$/Euro 0.61% 14.8316 US dollar/ Euro -0.26% 1.2395 Namibia Monthly Data Latest Previous Namibia Inflation (Dec 17) 5.2 5.2 Bank Prime 10.50 10.50 BoN Repo Rate 6.75 6.75 29-Jan-18

New Era

New Era Newspaper Vol 22 No 167