Bank of Namibia Act


Published: 1997

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GOVERNMENT GAZETTE OF THE

REPUBLIC OF NAMIBIA

N$6.09 WINDHOEK - 29 December 1997 No. 1761

CONTENTS

/ Page

GOVERNMENT NOTICE

No. 280 Promulgation of Bank of Namibia Act, 1997 (Act No. 15 of 1997), of the Parliament ,........................

Government Notice

OFFICE OF THE PRIME MINISTER

No. 280 1997

PROMULGATION OF ACT OF PARLIAMENT

The following Act which has been passed by the Parliament and signed by the President in terms of the Namibian Constitution is hereby published in terms of Article 56 of that Constitution.

No. 15 of 1997: Bank of Namibia Act, 1997.

2 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

To

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ACT

provide for a central bank of Namibia to serve as the State's principal

instrument to control money supply, currency and institutions of

finance; and to provide for matters incidental thereto.

(Signed by the President on 5 December 1997)

ARRANGEMENT OF ACT

Definitions

PART I

BANK OF NAMIBIA, ITS OBJECTS AND POWERS

Continuation of Bank of Namibia as central bank of Namibia

Objects

PART II

BOARD, MANAGEMENT AND STAFF

Constitution of Board

Tenure of office, conditions of service and remuneration of members

Termination of appointment and vacation of office of member

Disqualification from membership of Board

Duties of Governor and Deputy Governor

Meetings of Board

Disclosure of interest

Appointment of staff, agents and correspondents

Confidentiality

Indemnity from personal liability

No. 1761 Government Gazette 29 December 1997 3

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

14.

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PART III

SHARE CAPITAL, PROFITS AND RESERVE ACCOUNTS OF THE

BANK

Share capital of Bank

Profits of Bank

General Reserve Account and other reserve accounts

PART IV

MONETARY UNITS, SYMBOLS, NOTES AND COINS OF LEGAL

TENDER

Monetary units and symbols

External value of Namibian currency

Issuance, manufacture and characteristics of notes and coins

Legal tender

Withdrawal of notes and coins from circulation

Exchange of notes or coins

Bank not liable for lost or stolen notes or coins

Mutilation of notes

Counterfeiting, forgery and related offences

South African Rand to continue as legal tender

PART V

INTERNATIONAL RESERVE, FOREIGN EXCHANGE OPERATIONS

AND REVALUATION RESERVE ACCOUNT

International reserve

Adequacy of international reserve

Power to deal in gold, foreign exchange and to open accounts

Limitation

Revaluation Reserve Account

PART VI

RELATIONS WITH FINANCIAL INSTITUTIONS

Lender of last resort

4 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

33.

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Operations with account holders

Determination of Bank rates

Banking institutions to maintain minimum reserve balance

Additional powerzs of Bank

Disclosure of information by banking institutions

Maximum positions in foreign currencies

Clearing operations

PART VII

RELATIONS WITH THE GOVERNMENT

Banker, financial advisor, and fiscal agent

Official depository and cashier

Transactions in and management of Government securities

Lending to Government

Foreign borrowing by Government and statutory bodies or institutions

Limitations on lending to Government

Agent for administration of exchange control

Fiscal agent for international financial organisations

Other agency functions

Policy directives by Cabinet

PART VIII

ACCOUNTS AND STATEMENTS

Financial year

Accounts and audit

Submission and publication of accounts and reports

PART IX

MISCELLANEOUS PROVISIONS

Developmental role of Bank

Prohibited activities

Authority to borrow and to issue securities

Authority to call for information

Exemption from taxation

Restriction on the use of Bank's name

No. 1761 Government Gazette 29 December 1997 5

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

59.

60.

61.

62.

Regulations and by-laws

Repeal of law and savings

Construction of certain reference

Short title and commencement

BE IT ENACTED by the Parliament of the Republic of Namibia as

follows:-

Definitions

1. In this Act, unless the context otherwise indicates -

"affiliate", in respect of a banking institution, means any corporate body or

unincorporated association of persons, in which -

(i) twenty per cent or more of any class of voting shares or other

voting participation is directly or indirectly owned or controlled

by such banking institution, or is held by it with power to vote; or

(ii) the election of a majority of directors is controlled in any manner

by such banking institution;

"Bank" means the Bank of Namibia referred to in section 2;

"banking institution" means a banking institution registered as a banking institution

under the laws governing banking institutions;

"Board" means the board of the Bank referred to in section 4;

"Deputy Governor" means the Deputy Governor of the Bank appointed under

Article 32(4 )(b )(bb) of the Namibian Constitution;

"General Reserve Account" means the General Reserve Account established under

section 16;

"Governor" means the Governor of the Bank appointed under Article 32(4)(b )(bb)

of the NamibianConstitution;

6 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

"member" means a member of the Board;

"Minister" means the Minister of Finance;

"Rand" means the currency of the Republic of South Africa;

"special drawing right" means a unit of an international reserve asset provided

for in the Articles of Agreement of the International Monetary Fund;

"this Act" includes any regulation made thereunder.

PART I

BANK OF NAMIBIA, ITS OBJECTS AND POWERS

Continuation of Bank of Namibia as central bank of Namibia

2. (1) The Bank of Namibia established by section 2 of the Bank

of Namibia Act, 1990 (Act No.8 of 1990), shall, notwithstanding the repeal of

that Act by this Act, continue to exist as a juristic person under that name as the

central bank of Namibia.

(2) The head office of the Bank shall be situated in Windhoek, and

the bank may -

(a) establish branches elsewhere in Namibia or, with the approval of

the Minister, abroad; and

appoint agents and correspondents in Namibia or abroad.(b)

Objects

3. The objects of the Bank shall be -

(a) to promote and maintain a sound monetary, credit and financial

system in Namibia and sustain the liquidity, solvency and

functioning of that system;

(a) The Governor;

(b) the Deputy Governor;

(c) the Permanent Secretary: Finance;

No. 1761 Government Gazette 29 December 1997 7

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(b) to promote and maintain internal and external monetary stability

and an efficient payments mechanism;

(c) to foster monetary, credit and financial conditions conducive to

the orderly, balanced and sustained economic development of

Namibia;

(d) to serve as the Government's banker, financial advisor and fiscal

agent; and

(e) to assist in the attainment of national economic goals.

PART II

BOARD, MANAGEMENT AND STAFF

Constitution of Board

4. (1) There shall be a Board of the Bank in which the powers,

duties and functions of the Bank shall be vested and which shall, subject to the

provisions of this Act, be responsible for the policy and general administration of

the Bank.

(2) The Board shall consist of the following persons who shall, subject

to the Namibian Constitution and the provisions of this Act, be appointed by the

President, namely:

(d)

(e)

one staff member from the Public Service, who shall be appointed

on the recommendation of the Minister; and

four other persons, who shall be appointed after consultation with

the Minister.

8 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(3) Whenever the Public Service Commission is required to make its

recommendation to the President for the appointment of a Governor or Deputy

Governor under Article 32(4)(b)(bb) of the Namibian Constitution, such

recommendation shall be made only after consultation with the Minister.

(4) The Governor and Deputy Governor shall be appointed from

among persons who have the necessary qualifications and professional experience

for the office of Governor or Deputy Governor, as the case may be, and the

members referred to in paragraphs (d) and (e) of subsection (2) shall be appointed

from among persons of recognised standing and proven experience in business,

professional or academic matters.

(5) The appointment of a member of the Board shall be announced by

the President by Proclamation in the Gazette.

Tenure of office, conditions of service and remuneration of members

5. (1) Subject to section 7, the Governor and Deputy Governor

shall be appointed -

(a) for a fixed term of five years, but shall on the expiration of that

term be eligible for reappointment; and

(b) (i) on such terms and conditions of service; and

(ii) be paid from the funds of the Bank such remuneration and

allowances,

as the President may determine in consultation with the Minister.

(2) Subject to section 7, a member referred to in paragraph (d) or (e)

of subsection (2) of section 4 shall be appointed for a term of five years, but shall

on the expiration of that term be eligible for reappointment.

(3) The members referred to in paragraph (e) of subsection (2) of

section 4 who are not in the full-time employment of the State, shall be paid out

of the funds of the Bank such remuneration and allowances as the Minister, in

consultation with the Board, may determine.

No. 1761 Government Gazette 29 December 1997 9

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

Termination of appointment and vacation of office of member

6. (1) The appointment of a person as Governor, Deputy Governor

or other member shall, subject to subsection (2), terminate if that person -

(a)

(b)

(c)

(d)

becomes subject to a disqualification referred to in section 7;

is removed from office in accordance with the provisions of that

subsection;

resigns from office in accordance with the provisions of subsection

(3); or

being a member referred to in paragraph (e) of subsection (2) of

section 4, fails to attend three consecutive meetings of the Board

without the prior approval of the Chairperson.

(2) The Governor, Deputy Governor or a member referred to in

paragraphs (d) and (e) of subsection (2) of section 4 may, before the expiration of

his or her term of office, be removed from office by the President acting in

consultation with the Minister, on grounds of misconduct or inability to efficiently

discharge the duties of his or her office.

(3) A member may resign from his or her office by giving written

notice of such resignation to the President, of -

(a)

(b)

not less than three months, in the case of the Governor or Deputy

Governor; and

not less than one month, in the case of any other member.

(4) Where for any reason other than a temporary incapacity, the office

of Governor, Deputy Governor or any other member becomes vacant before the

expiration of the term for which he or she was appointed, the President shall

appoint another person in the same manner as the member vacating that office

was appointed, to fill the casual vacancy for the unexpired portion of the term of

office.

10 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

Disqualification from membership of Board

7. No person shall be appointed as Governor, Deputy Governor or

other member, if he or she -

(a)

(b)

(c)

(d)

(e)

(f)

is under the age of twenty-one years or has attained the age of

sixty-five years;

is a member of the National Assembly or the National Council;

is a director, officer, owner, employee or shareholder in any banking

institution, except where he or she is appointed as nominee for or

on behalf of the Government;

has been declared mentally ill by a competent court;

is an unrehabilitated insolvent;

has at any time been convicted of a criminal offence, whether in

Namibia or elsewhere, for which he or she was sentenced to

imprisonment without the option of a fine; or

(g) has at any time by order of a competent authority, been suspended

or disqualified from practising a profession on grounds of

professional or personal misconduct.

Duties of Governor and Deputy Governor

8. (1) The Governor shall, in addition to such other powers, duties

or functions as this Act may confer or impose -

(a) serve as the chief executive officer of the Bank and be accountable

to the Board for the management of the Bank and for the

implementation of its policies;

(b) negotiate and sign contracts, documents and instruments on behalf

of the Bank, subject to the provisions of this Act;

No. 1761 Government Gazette 29 December 1997 11

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(c) represent the Bank in its relations and transactions with the

Government and other institutions; and

(d) subject to the overall guidance and directions of the Board,

generally exercise all those powers and perform all those duties

and functions which are not expressly vested in the Board by this

Act, or which may be delegated by the Board to the Governor.

(2) The Governor may, with the approval of the Board, delegate any

of his or her powers under this Act to the Deputy Governor or to an officer or

officers of the Bank.

(3) The Deputy Governor shall exercise the powers delegated to him

or her under subsection (2) and shall perform such duties and functions of the

Governor as the Governor may assign to him or her, and where the Governor is

by reason of absence or other incapacity, temporarily unable to perform the duties

and functions of that office, the Deputy Governor may perform those duties and

functions during the period of absence or incapacity.

(4) In the event of both the Governor and Deputy Governor being

temporarily unable to perform their duties and functions by reason of absence or

other incapacity, the President shall, on the recommendation of the Board, appoint

another member of the Board or an officer of the Bank to act as Governor for the

period of absence or incapacity.

(5) The Governor and Deputy Governor shall devote the whole of

their professional services to the Bank and neither of them shall, without the

written approval of the Minister -

(a) receive remuneration from any source other than the Bank; or

(b) occupy any other office or position of employment, whether

remunerated or not, except as nominee of the Bank.

(6) The provisions of subsection (5) shall not be construed as

prohibiting the Governor or Deputy Governor from -

12 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(a) serving on a board, committee or commission established by the

Government; or

(b) holding an office in any international financial organisation or other

body of which Namibia or the Bank is a member.

Meetings of Board

9. (1) The Board shall meet as often as the business of the Bank

may require, but in any case not less than once every three months.

(2) The Governor may at any time, and shall at the written request of

at least three other members, convene a special meeting of the Board.

(3) The Governor shall cause reasonable prior notice of every meeting

of the Board to be given to the men:~bers of the Board, except in the case of

exceptionally urgent circumstances where a Board meeting may be convened

without prior notice.

(4) The Governor shall preside over the meetings of the Board, and,

in his or her absence from any meeting, the Deputy Governor shall preside at

such meeting, and where both the Governor and Deputy Governor are absent

from a meeting, the Permanent Secretary: Finance shall preside.

(5) The quorum for a meeting of the Board shall be five members.

(6) A decision of a majority of the members present and entitled to

vote at a meeting, shall constitute the decision of the Board, but in the event of an

equality of votes, the person presiding over such meeting shall have a casting

vote in addition to his or her deliberative vote.

(7) Subject to the provisions of subsection (5), no act or proceedings

of the Board shall be invalid merely by reason of the existence of a vacancy on

the Board.

(8) All acts authorised or decisions taken by the Board shall be valid

notwithstanding the subsequent discovery of any defect in the appointment or

No. 1761 Government Gazette 29 December 1997 13

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

qualification of any person who sat or acted as a member at the time when the act

was authorised or the decision was taken, if the act was authorised or the decision

was taken by the majority of the members present at the time who were entitled

to sit as such members and to vote.

(9) The Board shall cause accurate minutes of the proceedings at its

meetings to be kept.

Disclosure of interest

10. (1) A member of the Board who has a direct or indirect

personal, pecuniary, commercial, agricultural, industrial, or other interest in any

matter being or about to be deliberated upon by the Board shall, as soon as possible

after the relevant facts have come to his or her knowledge, disclose the nature of

that interest at a meeting of the Board and such disclosure shall be recorded in the

minutes of that meeting.

(2) A disclosure referred to under subsection (1) shall be made before

the commencement ofthe Board's deliberations on the matter in respect of which

the disclosure is made, whereupon the member disclosing the interest shall, unless

the Board otherwise determines, leave the meeting and not take part in the Board's

deliberations and voting on such matter.

(3) Notwithstanding the provisions of subsection (2), a member shall

be deemed to have made due and sufficient disclosure of his or her interest in a

matter if he or she -

(a) gives written notice at any Board meeting, to the effect that he or

she is a member of a specified body corporate, organisation or

association and is to be regarded as interested in any contract or

arrangement which is made by the Board with such body corporate,

organisation or association after the date of such notice; or

(b) takes reasonable steps to ensure that the disclosure is made by a

written notice which is conveyed to and considered at a Board

meeting, even if such member does not physically attend that

meeting to make the disclosure himself or herself.

14 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(4)

(a)

(b)

A member who -

knowingly fails to disclose his or her interest in a matter before

the Board, contrary to the provisions of subsection (1); or

without leave of the Board, takes part in the deliberations of the

Board on a matter in which he or she has a direct or indirect interest,

contrary to the provisions of subsection (2),

shall be guilty of an offence and be liable on conviction to a fine not exceeding

N$20 000 or to imprisonment for a period not exceeding five years, or to both

such fine and imprisonment.

Appointment of staff, agents and correspondents

11. (1) The Governor, or any other officer of the Bank or Deputy

Governor to whom the Governor has delegated the power conferred by this

subsection, may appoint or employ such officers, employees, agents and

correspondents of the Bank, as the Governor may consider necessary for the

efficient functioning of the Bank.

(2) The terms and conditions of employment, including conditions

relating to remuneration and service benefits, of officers or employees appointed

or employed under subsection (1) shall be determined by the Board, on the

recommendation of the Governor.

(3) The Bank may, subject to such terms and conditions as may be

determined by the Board -

(a) establish and manage, or make arrangements or enter into

agreements with any person to manage, any pension or provident

fund or similar scheme for the benefit and protection of officers

and employees, and former officers and employees, of the Bank

and their dependants or nominees, and make contributions to any

such fund or scheme; or

(b) grant secured or unsecured advances to officers or employees of

No. 1761 Government Gazette 29 December 1997 15

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

the Bank for such purpose and in such amounts as the Board may

approve.

Confidentiality

12. (1) No person shall directly or indirectly disclose to another

person any information that he or she has acquired in the performance of his or

her duties or functions, for or on behalf of the Bank, except for the purpose of the

performance of his or her duties or functions in terms of this Act or when required

to do so by a court of law or under any law or on authority of the Board.

(2) Any person who contravenes subsection (1) shall be guilty of an

offence and liable on conviction to a fine not exceeding N$20 000 or to

imprisonment for a period not exceeding five years, or to both such fine and

imprisonment.

Indemnity from personal liability

13. The Governor, Deputy Governor, a member of the Board or an

officer or employee of the Bank shall not be personally liable for anything done

in good faith under this Act.

PART III

CAPITAL, PROFITS AND RESERVES

Share capital of Bank

14. (1) The authorised share capital of the Bank shall be not less

than N$100 000 000, of which a minimum of N$40 000 000 shall be subscribed

for and fully paid-up by the Government.

(2) The Bank may, from time to time, increase its authorised capital

by such amounts as may be recommended by the Board and approved by the

Minister.

(3) The Government shall be the sole holder ofthe capital of the Bank.

16 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(4) The holdings of the Government of such capital shall not be

transferable in whole or in part or subject to any encumbrance.

(5) The Board may from time to time, subject to the written approval

of the Minister, increase the paid-up capital of the Bank by transfers from the

General Reserve Account.

(6) No reduction in the capital or in the paid-up capital of the Bank

shall be effected, except by amendment to this Act.

(7) Whenever the Board is of the opinion that the assets of the Bank

are less than the sum total of its liabilities and its paid-up capital, the Minister

may, from moneys appropriated by law for that purpose, cause funds to be

transferred to the ownership of the Bank in such amounts as are necessary to

preserve the paid-up capital of the Bank from impairment.

Profits of Bank

15.. (1) The net profits of the Bank for any financial year shall be

determined by the Board after meeting all current expenditure for such year and

after making provision for -

(a) bad and doubtful debts and depreciation of assets;

(b) pensions, gratuities, or other benefits for its officers and employees;

(c) the cost of issue of notes and coins, which may be amortised over

a period not exceeding five years; and

(d) such other items as the Board may deem necessary.

(2) The net profits of the Bank determined in respect of a given

financial year shall, at the end of that financial year, be disbursed as follows:

(a) Where at the close of a financial year the funds in the General

Reserve Account are less than fifty percent of the paid-up capital

of the Bank, the Board shall credit -

No. 1761 Government Gazette 29 December 1997 17

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(b)

(c)

(i) not less than thirty percent of the net profits of the Bank

for that financial year, to the General Reserve Account;

and

(ii) not less than twenty-five percent of the net profits of the

Bank for that financial year, to the State Revenue Fund;

where at the close of a financial year the funds in the General

Reserve Account are more than 50% of the paid-up capital of the

Bank, the Board shall credit-

(i) not less than twenty-five percent of the net profits of the

Bank for that financial year, to the General Reserve

Account; and

(ii) not less than thirty percent of the net profits of the Bank

for that financial year, to the State Revenue Fund;

the Board may, after the credits referred to in paragraph (a) or (b),

transfer from the balance of its net profits such amounts of money

to the General Reserve Account or any other reserve account

established under section 16 or the State Revenue Fund, as it may

determine after consultation with the Minister.

General Reserve Account and other reserve accounts

16. (1) The Bank shall establish and manage a General Reserve

Account, which shall only be used to -

(a)

(b)

(c)

increase the paid-up capital of the Bank pursuant to subsection (5)

of section 14;

off set losses sustained by the Bank during a financial year;

fund a development reserve account established under subsection

(1)(a) of section 53; and

18 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(d) redeem any securities issued by the Bank pursuant to section 55.

(2) Subject to the approval of the Minister, the Board may establish

and manage other reserve accounts for the Bank for specified purposes.

PART IV

MONETARY UNITS, SYMBOLS, NOTES AND COINS OF LEGAL

TENDER

Monetary units and symbols

17. The President may by proclamation in the Gazette determine the

monetary units and the symbols to be used for such units which shall, with effect

from the date specified in such proclamation, be the currency of Namibia.

External value of Namibian Currency

18. The Board shall, on the recommendation of the Governor after

consultation with the Minister, establish the arrangements for the determination

of the external value of the currency determined under section 17, having due

regard to any obligations arising under any international monetary agreement to

which Namibia has acceded or is a signatory.

Issuance, manufacture and characteristics of notes and coins

19. (1) Subject to subsection (2), the Bank shall have the sole right

to issue notes and coins in Namibia, denominated in the monetary units determined

under section 17.

(2) The Board shall, with the approval of the Minister, determine the

denominations, composition, form, design and characteristics of the notes and

coins to be issued by the Bank, and the Governor shall prior to the issue of such

notes and coins cause their characteristics to be published by notice in the Gazette.

(3) The Bank shall arrange for -

No. 1761 Government Gazette 29 December 1997 19

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(a)

(b)

(c)

Legal Tender

the printing of notes and the minting of coins and for all matters

relating thereto;

the security and safe-keeping of unissued notes and coins; and

the custody and destruction where necessary, of plates and dyes

used in the manufacture of currency, and of retired notes and coins.

20. Subject to section 21, notes and coins issued by the Bank shall be

legal tender within Namibia and shall be valid -

(b)

(a) in the case of notes, for the payment of any amount; and

in the case of coins, for the payment of an amount not exceeding

fifty times the face value of the coin concerned.

Withdrawal of notes and coins from circulation

21. (1) Subject to the provisions of this section, the Bank may

withdraw from circulation any notes or coins issued by it under this Act.

(2) For the purposes of withdrawing notes or coins from circulation, the

Governor shall, on the direction of the Board, by notice in the Gazette, specify-

(a)

(b)

(c)

the date on which such notice shall come into operation;

the notes or coins to be withdrawn from circulation; and

the period, being not less than three months from the date of

publication of the notice, within which the notes or coins to be

withdrawn from circulation may be exchanged for legal tender in

accordance with the provisions of section 22.

(3) Subject to the provisions of subsections (4) and (5), the notes or

coins withdrawn from circulation under this section shall, with effect from the

20 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

date immediately following the expiry of the period referred to in paragraph (c)

of subsection (2), cease to be legal tender in Namibia.

(4) Notwithstanding the provisions of subsection (2) or (3), a person

who holds notes or coins which have ceased to be legal tender in terms of

subsection (3) shall, within a period of two years from the date of expiry of the

period referred to in paragraph (c) of subsection (2), be entitled to exchange such

notes or coins for legal tender at such value as may be determined by the Bank.

(5) Notwithstanding the provisions of subsection (3) or (4), the Bank

may, after the expiry of the two year period referred to in subsection (4), continue

to exchange withdrawn notes and coins for legal tender, for such further period

and at such value as the Governor, on the direction of the Board, may determine

by notice in the Gazette.

Exchange of notes and coins

22. (1) Upon surrender by any person to the Bank, or to any agent

of the Bank authorized for that purpose, of any notes or coins issued by the Bank,

the Bank or such agent shall, subject to the provisions of subsections (2) and (3),

exchange on demand and without charge such notes or coins for notes and coins

of equivalent value.

(2) The Bank or its authorized agent shall not be obliged to exchange

any coins that have been perforated, cut, clipped, or broken, or on which any

mark has been privately impressed, or that show signs of non-monetary use, or

the design of which is not distinguishable, but the Bank may, in its discretion,

exchange such coins.

(3) The conditions under which mutilated or otherwise damaged notes

may be exchanged at partial or full face value shall be determined from time to

time by the Bank.

Bank not liable for lost or stolen notes or coins

23. (1) No person shall be entitled to recover from the Bank the

value of any lost or stolen notes or coins, except in relation to a shipment or

No. 1761 Government Gazette 29 December 1997 21

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

consignment of notes or coins in respect of which the Bank has expressly

undertaken liability.

(2) The provisions of subsection (1) shall not affect the liability of the

Bank for any loss suffered by any person in consequence of the negligence of the

Governor, Deputy Governor, any other member, or any officer, employee, or agent

of the Bank in the course of and in the execution of his or her duties.

Mutilation of notes

24. (1) A person who, without the permission of the Bank, wilfully-

(a) cuts, tears, perforates, or in any other way whatsoever mutilates

any note issued by the Bank;

(b) writes, prints, stamps, or draws anything upon any such note;

(c) attaches or affixes any seal or stamp to or upon any such note,

shall be guilty of an offence and shall be liable on conviction to a fine not

exceeding N$8 000 or to imprisonment for a period not exceeding two years, or

to both such fine and such imprisonment.

(2) Notwithstanding anything to the contrary in any other law

contained, magistrates' courts shall have jurisdiction to impose the penalty

provided for in subsection (1).

Counterfeiting, forgery and related offences

25. (1) Subject to section 2 of the Prevention of Counterfeiting of

Currency Act, 1965 (Act No. 16 of 1965), any person who -

(a) forges, alters or unlawfully issues a note or coin of the Bank, or

something purporting to be a note or coin of the Bank;

(b) utters, tenders or accepts a note or coin of the Bank, or something

purporting to be a note or coin of the Bank, knowing it to be

22 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

counterfeit, forged or falsified;

(c) without the authority of the Bank -

(i)

(ii)

(iii)

engraves or makes upon any material whatsoever any

words, figures, letters, marks, lines or devices the print

whereof resembles in whole or in part any words, figures,

letters, marks, lines or devices peculiar to and used in or

upon any note of the Bank or any coin, which is legal

tender;

uses or knowingly has in his or her possession any material

whatsoever upon which has been engraved or made any

words, figures, letters, marks, lines or devices contemplated

in subparagraph (i); or

photographs or copies in whatever manner a note of the

Bank,

shall be guilty of an offence and shall be liable on conviction to a fine not exceeding

N$100 000 or to imprisonment for a period not exceeding seven years, or to both

such fine and imprisonment.

(2) Notwithstanding anything to the contrary in any other law

contained, magistrates' courts shall have jurisdiction to impose the penalty

provided for in subsection (1).

(3) In criminal proceedings under this Act or any other law where the

genuineness of a coin or note is in issue, a certificate issued by the Governor,

Deputy Governor or other officer of the Bank duly authorised thereto by the

Governor, stating that such note or coin is a note or coin issued by the Bank, or is

not a note or coin issued by the Bank, shall be admissible in evidence as prima

facie proof of the facts stated in such certificate.

(4) Where a person is convicted of an offence under this section the

court may, in addition to the penalty imposed, order that a note, coin, article,

instrument, machinery or equipment used in the commission of the offence, be

No. 1761 Government Gazette 29 December 1997 23

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

confiscated or destroyed.

South African Rand to continue as legal tender

26. (1) Notes and coins issued by the South African Reserve Bank

and serving as legal tender in the Republic of South Africa shall continue to serve

as legal tender within Namibia until a date to be determined by the Minister by

notice in the Gazette: Provided that a person who continues to hold such notes or

coins after the date determined by the Minister may, within two years from that

date, or within such longer period as the Minister may determine and specify in

the notice, exchange such notes or coins for notes or coins issued by the Bank at

such rate as the Bank may determine.

(2) The Bank shall on demand exchange notes and coins of the South

African Reserve Bank for notes and coins of the Bank at such rate as the Bank

may determine.

(3) A reference in any law, deed, instrument, contract, agreement or

other legally binding document enforceable in Namibia, to an amount of money

expressed in Rand shall -

(a) on or before the date determined by the Minister under subsection

(1), be construed as including a reference to a corresponding

amount of money expressed in terms of the currency issued by the

Bank, and payable either in Rand or the currency issued by the

Bank; and

(b) after the date determined by the Minister under subsection (1), be

construed as a reference to the corresponding amount of money

expressed in terms of the currency issued by the Bank, and payable

only in that currency.

(4) For the purposes of section 25(1), notes and coins referred to in

subsection (l) of this section shall, until the date determined under the said

subsection, be deemed to be notes and coins of the Bank.

(5) (a) The Minister may, after consultation with the Bank, take

24 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(b)

such measures as he or she may deem appropriate in respect of the

continued participation of Namibia in the arrangements of the

Common Monetary Area.

For the purposes of paragraph (a) "Common Monetary Area"

means the area in which exchange and monetary arrangements

are co-ordinated in accordance with the Multilateral Monetary

Agreement concluded on 6 February 1992 between the Republic

of Namibia, the Kingdom of Lesotho, the Republic of South Africa

and the Kingdom of Swaziland.

PART V

INTERNATIONAL RESERVE, FOREIGN EXCHANGE OPERATIONS

AND

REVALUATION RESERVE ACCOUNT

International reserve

27. (1) The Bank shall establish and maintain, on such terms and

conditions as the Board may from time to time determine, an international reserve,

which shall consist of all or any of the following:

(a) Gold;

(b) foreign exchange in the form of notes and coins or bank balances

held abroad, denominated in such currencies and located in such

countries as the Board may approve for the purposes of this section;

(c) any internationally recognized reserve asset, including -

(i) the reserve position of Namibia in the International

Monetary Fund; and

(ii) holdings of special drawing rights by Namibia;

(d) bills of exchange and promissory notes, as well as treasury bills

No. 1761 Government Gazette 29 December 1997 25

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

and other securities issued or guaranteed by foreign governments

or international financial institutions, denominated in foreign

currencies and payable outside Namibia; and

(e) such other external assets as the Board may approve for the

purposes of this section.

(2) The Bank shall have due regard to the liquidity and safety of such

assets and to the need to protect the international purchasing power of the reserve.

Adequacy of international reserve

28. (1) The Bank shall use its best endeavours to maintain the

international reserve established under section 27 at a level that is, in the opinion

of the Board, adequate for the international transactions of Namibia.

(2) If such international reserve is at such a level that the Board

considers its adequacy in jeopardy, the Board shall submit to the Minister a report

on the reserve position together with recommendations concerning the measures

that the Board considers necessary to forestall or otherwise remedy the situation.

(3) Until such time as, in the opinion of the Board, the situation has

been rectified, the Board shall continue to make such reports and recommendations

to the Minister at intervals not exceeding one month.

Power to deal in gold, foreign exchange and to open accounts

29. The Bank may -

(a) buy, sell, or deal in gold or other precious metals;

(b) buy, sell, or deal in foreign currencies, using for these purposes

any of the instruments commonly used in such transactions;

(c) buy, sell, or deal in treasury bills and other securities issued or

guaranteed by foreign governments or international financial

organizations;

26 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(d)

(e)

Limitation

open and maintain accounts with any central bank or monetary

authority, or any banking or other financial institution or any

international financial organization; and

open and maintain accounts, and act as agent or correspondent,

for any foreign central bank or monetary authority, or any banking

or other financial institution outside Namibia, or any foreign

government or agent of such government, or any international

financial organization.

30. The Bank shall, subject to the provisions of this Act, when

exercising the powers conferred by section 29, deal only with -

(a) the Government;

(b) banking or other financial institutions in Namibia;

(c) foreign governments or their agencies;

(d) international financial organizations;

(e) central banks or monetary authorities;

(f) banks or other financial institutions outside Namibia; or

(g) other institutions or bodies as may be approved by the Minister.

Revaluation Reserve Account

31. (1) Any net gains in any financial year of the Bank arising

from any change in the book or realized value of the Bank's assets or liabilities

denominated in currencies or units of account other than domestic currency, such

as gold, special drawing rights and foreign currencies, as a result of any change in

the value of such currencies or units of account in terms of the currency of Namibia,

shall be credited to a Revaluation Reserve Account.

No. 1761 Government Gazette 29 December 1997 27

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(2) (a) Where in any financial year the Bank incurs net losses

arising from the change in value referred to in subsection (1), such

losses shall be set off against any credit balance in the Revaluation

Reserve Account.

(b) If the balance in the Revaluation Reserve Account is insufficient

to cover such losses, the Government shall issue to the Bank non-

negotiable securities to the extent of the deficiency, on such terms

and conditions as the Minister and the Board may agree upon.

(3) In the computation of the Bank's annual net profits, neither the

gains of the Bank referred to in subsection (1), nor the losses referred to in

subsection (2) shall be included in such profits.

(4) Any credit balance in the Revaluation Reserve Account at the end

of each financial year of the Bank shall be applied to redeem any securities issued

and outstanding under subsection (2)(b).

(5) No credits or debits shall be made to the Revaluation Reserve

Account except in accordance with the provisions of this section.

PART VI

RELATIONS WITH FINANCIAL INSTITUTIONS

Lender of last resort

32. The Bank may, where the Board considers it necessary for the

purposes of maintaining a sound financial system, act as a lender of last resort for

the account holders referred to in section 33, on such terms and conditions as the

Board may determine.

Operations with account holders

33. (1) The Bank may, subject to such terms and conditions as the

Board may from time to time determine -

28 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(a) open bank accounts for, other than a bank account referred to in

section 35, and accept deposits from, banking institutions or such

other bodies or institutions as the Minister may approve for that

purpose; and

(b) purchase from, sell to, discount or rediscount for the account

holders contemplated in paragraph (a) -

(i) bills of exchange or promissory notes which -

(aa) are drawn for a bona fide commercial purpose;

(bb) bear two or more good signatures of which at least

one is that of a banking institution; and

(cc) mature within 183 days from the date of their

acquisition by the Bank;

(ii) treasury bills or other securities issued or guaranteed by

the Government, which form part of a public issue;

(iii) securities issued by the Bank under section 55; and

(iv) such negotiable instruments, security bonds, or debentures

as the Board may, with the approval of the Minister,

determine and designate by notice in the Gazette.

(2) The Bank may, on such terms and conditions as the Board may

from time to time determine, grant to the account holders referred to in this section,

for periods not exceeding 183 days, advances that are secured by -

(a) an instrument referred to in paragraph (b) of subsection (1);

(b) warehouse receipts or documents of title issued in respect of staple

commodities or other goods duly insured; or

(c) holdings of any assets that the Bank is permitted to buy, sell, or

(a) demand deposits;

(b) savings accounts;

(c) time deposits;

(d) deposit liabilities; or

No. 1761 Government Gazette 29 December 1997 29

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

otherwise deal in under section 29.

( !

(3) Notwithstanding the provisions of subsection (2), the Bank may,

on such terms and conditions as the Board may determine, grant to an account

holder referred to in this section, a loan which is unsecured or secured by assets

other than those referred to in that subsection, when, in the opinion of the Board,

such loan is necessary to meet the liquidity requirements of that account holder.

Determination of Bank rates

34. The Bank shall from time to time determine and announce the

rates chargeable by the Bank for discounts, rediscounts and advances, and may

determine different rates and ceilings for different classes of transactions or

maturities.

Banking institutions to maintain minimum reserve balance

35. (1) Every banking institution shall maintain an account with

the Bank in which such banking institution shall maintain a minimum reserve

balance in accordance with the provisions of this section.

(2) For the purposes of maintaining monetary stability in Namibia,

the Bank may from time to time direct a banking institution to deposit or transfer

into that banking institution's account held with the Bank pursuant to the provisions

of subsection (1), such amounts of money expressed as a percentage of that banking

institution's -

(e) any other liabilities,

astheBank may determine.

30 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(3) If a banking institution fails or is unable to comply with a directive

of the Bank under subsection (2), it shall forthwith submit a written report of its

failure or inability to comply with the directive and the reasons therefore, to the

Governor.

(4) A banking institution which has failed or is unable to comply with

a directive of the Bank under subsection (2) shall not without the prior approval

of the Board extend new loans or credit to its customers during the period of such

failure or inability.

(5) Any person who contravenes or fails to comply with a provision

of subsection (1), (2), (3) or (4) shall be guilty of an offence and liable on conviction

to a fine of N$l a 000, or to imprisonment for a period not exceeding six months.

(6) The Bank may summarily bring a charge in terms of subsection

(5) against the banking institution in question or, if in the circumstances the Board

deems it fit to do so, condone the failure or inability and afford that banking

institution an opportunity, subject to such conditions as the Board may determine,

to comply with the relevant provision within a specified period.

(7) Irrespective of whether criminal proceedings in terms of subsection

(5) have been or may be instituted against a banking institution in respect of any

failure or inability to comply with subsection (2), the Bank may, subject to any

condonation granted under subsection (6), by way of a written notice impose

upon that banking institution, in respect of such failure or inability, a fine not

exceeding one-tenth of one per cent of the amount of the shortfall for each day on

which such failure or inability continues.

Additional powers of the Bank

36. (1) In addition to the powers, functions and duties conferred

upon or assigned to the Bank by this Act, the Bank shall exercise such powers

and perform such functions and duties as may be conferred upon or assigned to it

by any other law.

(2) Notwithstanding anything to the contrary contained in any law,

the Minister may by notice in the Gazette entrust to the Bank any power, function

or duty conferred upon or assigned to any other person or authority by a law, the

No. 1761 Government Gazette 29 December 1997 31

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

administration of which falls under the responsibility of the Ministry of Finance.

Disclosure of information by banking institutions

37. Without prejudice to the provisions of any other law relating to the

disclosure of information by a banking institution to its customers, every banking

institution shall, in such manner as the Board may determine, disclose to -

(a)

(b)

each customer who makes a deposit with the banking institution,

the terms and conditions upon which the deposit is made, including

the effective annual interest rate payable to such customer and

any fees, charges or commission, if any, payable by such customer

in respect of that deposit;

each customer to whom the banking institution extends credit, the

terms and conditions upon which such credit is extended, including

the effective annual interest rate, fees, charges or commission, if

any, payable by such customer in respect of such credit; and

(c) the public, the indicative annual rates offered by that banking

institution on deposits and loans.

Maximum positions in foreign currencies

38. (1) The Bank may from time to time determine the maximum

netto open position in foreign currency positions that banking institutions may

hold generally or in any specified currency or currencies.

(2) If any banking institution exceeds the position determined under

subsection (1) the Board may impose on that banking institution a penalty not

exceeding five percent per day of the amount in excess of the maximum position

so determined.

Clearing operations

39. The Bank may, in conjunction with banking institutions -

32 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(a)

(b)

organise facilities for the clearing of cheques and other instruments

for effecting payments, and establish such rules and procedures

relating to clearing operations as may be appropriate; and

establish and enforce arrangements for the settlement of balances

arising from clearing operations between the Bank and banking

institutions or between banking institutions.

PART VII

RELATIONS WITH THE GOVERNMENT

Banker, financial advisor, and fiscal agent

40. (1) The Bank shall, as banker for, financial advisor to and fiscal

agent of, the Government, render advice and furnish reports to the Minster on -

(a) any economic or financial matter which the Minister may refer to

the Bank for investigation and advice; and

(b) any matter which, in the opinion of the Board, is likely to affect

the achievement of its objects or the performance of its functions

under this Act.

(2) The Board shall express its opinion on the preparation of the

Government's budget.

Official depository and cashier

41. (1) The Bank shall be the official depository of Government

funds and shall on behalf of the Government receive and disburse moneys and

keep account thereof.

(2) Notwithstanding the provisions of subsection (1), the Government

may also maintain accounts with, and use the services of, any other banking

institution, and the arrangements for maintaining such accounts and for the use of

such services may be made by the Bank at the request of the Minister.

No. 1761 Government Gazette 29 December 1997 33

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

Transactions in and management of Government securities

42. (1) The Bank may be entrusted with the issue and management

of securities issued or guaranteed by the Government, upon such terms and

conditions as may be agreed upon between the Minister and the Board.

(2) The Bank may purchase and sell securities issued by the

Government and may deal directly with any person in relation to such securities

or treasury bills.

Lending to the Government

43. (1) Subject to section 45, the Bank may grant loans to the

Government on such terms and conditions as the Board and the Minister may

agree upon, but every such loan shall be repaid to the Bank within six months

from the date on which the loan in question was granted.

(2) Subject to the provisions of subsection (1), the Bank may grant

loans to the Government, on such terms and conditions as the Board and the

Minister may agree upon, for the purposes of paying subscriptions, fees, or other

financial obligations of the Government arising from, or incidental to -

(a) the membership of Namibia in any international bank or

international financial organization;

(b) the participation of Namibia in any account thereof; or

(c) any transaction or operation in connection therewith.

Foreign borrowing by Government and statutory bodies or institutions

44. (1) Where the Government or any governmental body or

institution established by or under any law intends to borrow from any source in

a foreign country, it shall -

(a) before entering into any commitment to borrow any foreign

currency from such source, consult the Bank regarding the timing,

34 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

terms and conditions and financial expediency of the intended

borrowing; and

(b) after entering into such commitment to borrow, promptly notify

the Bank of the terms and conditions of such borrowing.

(2) Where after the consultation referred to in paragraph (a) of

subsection (1) the Bank is of the opinion that the intended borrowing is financially

or economically inappropriate or inexpedient for the prevailing economic

conditions, the Bank shall report the matter to the Minister, and may recommend

to him or her such measures as it may consider necessary to remedy the situation.

Limitations on lending to Government

45. (1) The Bank shall not lend to the Government or acquire the

securities of the Government except in accordance with the provisions of section

31 (2)(b), 33(1 )(b )(ii), 42(2) or 43, or in the course of satisfaction of debts due to

the Bank from the Government.

(2) Subject to the provisions of subsection (4), the total of all

outstanding loans from the Bank to the Government in terms of section 43( 1) and

the Bank's holdings of securities purchased or acquired under section 33( 1)(b )(ii)

or 42(2) shall not exceed twenty-five percent of the Government's average annual

ordinary revenue for the three financial years immediately preceding: Provided

that if the accounts for the latest completed financial year are not yet available,

the official estimates of that year's ordinary revenue may be used in the

computation of the average.

(3) For the purposes of subsection (2), "revenue" shall not include

loans, grants, or other forms of economic aid obtained or received by the

Government.

(4) The Minister may, in exceptional circumstances, authorise the Bank

to allow the total referred to in subsection (2) to be increased to an amount not

exceeding thirty-five percent ofthe average annual ordinary revenue contemplated

in that subsection.

No. 1761 Government Gazette 29 December 1997 35

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

(5) Whenever the Bank is of the opinion that the lending limitation

provided in subsection (2) is about to be exceeded, it shall submit to the Minister

a report on the Bank's outstanding loans and credit facilities and holding of

securities, and the causes that may lead to such excess, together with

recommendations the Bank deems appropriate to forestall or otherwise remedy

the situation.

(6) Where the limitation provided in subsection (2) is exceeded in

accordance with subsection (4), the Bank shall continue to make such reports and

recommendations to the Minister, as it may deem appropriate in order to remedy

the situation and avoid its recurrence in the following financial year.

Agent for administration of exchange control

46. (1) The Bank shall act as agent for the Government in the

administration of any law relating to exchange control, in accordance with such

instructions or directives as the Minister may from time to time issue for this

purpose.

(2) Any return, statement, account, or information required to be

submitted to the Minister by authorised dealers in terms of the provisions of a

law or pursuant to any instruction or directive contemplated in subsection (1)

shall be submitted to the Bank for consolidation and transmittal to the Minister.

(3) The Bank shall at all times maintain a record of balance of payments

containing such information, statistics and particulars and for such periods as the

Board may from time to time determine, for the purpose of carrying out the objects

of the Bank and discharging its duties and functions under this Act.

(4) For the purpose of maintaining the record of balance of payments,

the Bank shall have the power to require in writing from any person who, in the

opinion of the Bank, has in his or her possession or under his or her custody or

control, or has within his or her capacity to obtain, compile or submit, any

information, statistics or document relating to the record of balance of payments -

(a) to submit such information, statistics or document to the Bank

within such period or at such intervals or in such manner or form

36 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

as the Bank may specify; or

(b) to attend before an officer of the Bank to answer any enquiries in

relation to such information, statistics or document.

(5) Any person who fails to comply with any requirement of the Bank

under this section or who wilfully supplies false or misleading information commits

an offence and shall be liable on conviction to a fine not exceeding N$50 000 or

to imprisonment for a period not exceeding five years, or to both such fine and

such imprisonment.

Fiscal agent for international financial organisations

47. The Bank may serve as depository of, and fiscal agent through

which transactions may be conducted with any international financial organisation

of which Namibia is a member.

Other agency functions

48. The Bank may act as agent for the Government for such purposes

and on such terms and conditions as may be agreed upon between the Minister

and the Board.

Policy directives by Cabinet

49. (1) Where, after consultation with the Bank, the Minister is of

the opinion that the policies being pursued by the Bank are not adequate for, or

conducive to, the achievement of the objects of the Bank, the Minister shall submit

a recommendation to the Cabinet, and the Cabinet may, after consultation with

the Board, determine the policy to be adopted by the Bank, and issue a directive

setting out the essential policy reasons therefor and specifying the period during

which such policy shall be implemented by the Bank.

(2) Subject to the provisions of subsection (3), the Bank shall, during

the period specified, give effect to the policy determined by the Cabinet.

(3) The Cabinet may at any time amend or withdraw any directive

No. 1761 Government Gazette 29 December 1997 37

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

issued by it under subsection (1).

(4) The Minister shall cause any directive issued by the Cabinet under

subsection (1) or any amendment or withdrawal of any such directive, to be

published by notice in the Gazette.

(5) If the Board objects to a directive of Cabinet issued under this

section, the Board may within 30 days after receipt thereof submit its objections

and the reasons therefor in writing to the Minister, who shall cause the same,

together with his or her recommendations thereon to be laid upon the Tables in

the National Assembly within 30 days of his or her receipt thereof if the National

Assembly is in ordinary session or, if it is not then in ordinary session, within 14

days after the commencement of its next ordinary session.

PART VIII

ACCOUNTS AND STATEMENTS

Financial year

50. The financial year of the Bank shall begin on the first day of January

and end on the thirty first day of December of that year.

Accounts and audit

51. (1) Subject to the provisions of subsection (2), the Board shall

appoint a firm of accountants and auditors registered under the Public Accountants'

and Auditors' Act, 1951 (Act No. 51 of 1951), who shall annually auditthe Bank's

books of accounts.

(2) Without prejudice to subsection (1), if in the opinion of the Minister

there are reasonable grounds for doing so, he or she may direct the Auditor-General

to investigate into and report on the accounts ofthe Bank or any matter relating to

the affairs of the Bank, and the Bank shall provide the Auditor-General with all

the information and facilities necessary for such investigation.

(3) The report of the Auditor-General referred to in this section shall

38 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

be in accordance with the directives of the Minister and shall be submitted to the

Minister in writing.

Submission and publication of accounts and reports

52. (1) The Bank shall submit to the Minister within three months

after the close of each financial year -

(a) a copy of the Bank's annual accounts certified by the auditors;

(b) a report of the Bank's operations and affairs during that year; and

(c) a report on the state of the economy.

(2) The Bank shall, as soon as possible after the last business day of

each month, but in any event within 15 business days, prepare and submit to the

Minister a return of the Banks' assets and liabilities as at the close of business on

that day.

(3) The copy of the accounts and the report referred to in subsection

(1)(a) and the return referred to in subsection (2) shall be signed by the Governor

or the Deputy Governor and the chief financial officer of the Bank.

(4) (a) The Bank shall cause the accounts, reports and returns

referred to in subsections (1) and (2) to be published in such manner

as the Minister may approve.

(b) The Bank may at any time publish such other reports and studies

on financial and economic issues as the Board deems appropriate.

(5) The Minister shall, within 30 days after the receipt thereof, lay a

copy of the annual accounts and reports referred to in subsection (1) upon the

Tables in the National Assembly if the National Assembly is in ordinary session

or, if it is not then in ordinary session, within 14 days after the commencement of

its next ordinary session.

No. 1761 Government Gazette 29 December 1997 39

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

PART IX

MISCELLANEOUS PROVISIONS

Developmental role of Bank

53. (1) Subject to subsection (2), the Bank may in order to obtain

its objects, with the concurrence of the Minister -

(a)

(b)

(c)

establish one or more reserve accounts under this Act as may be

necessary for the purpose of promoting or financing economic

development in Namibia;

establish, acquire, hold, or sell shares in companies or other juristic

persons set up for the purpose of promoting economic development

in Namibia and in particular the development of a money market,

securities market, consumer credit, industrial credit, venture capital,

long-term credit, savings institutions, and other financial and

investment services institutions; and

to grant advances or loans, with or without security as the Minister

may approve, to companies or other juristic persons set up for the

purpose of promoting economic development in Namibia,

including such companies or other juristic persons established,

acquired, or held pursuant to paragraph (b).

(2) The powers referred to in subsection (1) shall only be exercised

for the development or promotion of projects, institutions, or facilities -

(a)

(b)

in the financial sector of the economy; and

in those areas where the Government or its agencies or the private

sector have not adequately met the needs of the financial sector

of the economy of Namibia.

Prohibited activities

54. Except as otherwise provided in this Act, the Bank shall not -

40 Government Gazette 29 December 1997 No. 1761

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(a)

(b)

engage in trade, purchase, or otherwise acquire shares in any

banking institution or any corporation or company, or otherwise

have ownership interest in any financial, commercial, agricultural,

industrial, or other business undertaking: Provided that nothing

in this section shall prevent the Bank, subject to the approval of

the Minister, from acquiring shares or otherwise obtaining

ownership interest in any international bank or international

financial organization, or any associated or affiliated bank or

financial organisation thereof, of which Namibia or the Bank is a

member;

acquire by purchase, lease, or otherwise any real right in or to

immovable property, except if the Board considers such acquisition

necessary or expedient -

(i) for the purpose of providing premises for the conduct of

the Bank's business;

(ii) for the purpose of providing housing for the Governor,

Deputy Governor, officers, employees, or consultants of

the Bank; or

(iii) for any other purpose incidental to the performance of the

Bank's functions under this Act;

(c) make secured or unsecured advances or accept shares as security.

(4) Nothing in this section shall prevent the acquisition by the Bank

in the course of satisfaction of debts due to it, of any interest or right referred to in

subsection (1), but any interest or right so acquired shall be disposed of by the

Bank at the earliest suitable opportunity.

Authority to borrow and to issue securities

55. The Bank may with the approval of the Minister -

(a) make arrangements or enter into agreements with the Government

No. 1761 Government Gazette 29 December 1997 41

BANK OF NAMIBIA ACT, 1997Act No. 15, 1997

(b)

or any banking or other financial institution or with any institution

in a foreign country to borrow money in such manner, at such rate

of interest and subject to such other terms and conditions as the

Board may approve;

issue securities in its own name and for its own account, and may

buy, sell, or otherwise deal in such securities with members of the

public.

Authority to call for information

56.

(a)

(b)

(1) The Bank may in writing direct any person -

to furnish the Bank periodically or otherwise, and before the date

or within the period specified in the direction, with such

information as may be available to such person and as the Board

may consider necessary for the Bank to perform effectively its

functions under this Act; or

subject to any other law, to submit to the Bank within the period

specified in the direction any register, book or document in the

possession or custody or under the control of any such person

which contains or is believed to contain any such information.

(2) Without limiting the generality of the power conferred by

subsection (1), the Bank may call for any information that it may require for the

purposes of this Act from any banking institution about its operations or those of

its affiliates in Namibia or elsewhere.

(3) Any person who fails to supply any information called for by the

Bank under subsection (1) or (2), or who wilfully supplies any false or misleading

information shall be guilty of an offence and liable on conviction to a fine not

exceeding N$20 000 or to imprisonment for a period not exceeding five years, or

to both such fine and such imprisonment.

42 Government Gazette 29 December 1997 No. 1761

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

Exemption from taxation

57. The Bank shall be exempt from the payment of any tax on its

income, any stamp duty, and any duty or tax in respect of the importation of notes

or coms.

Restriction on the use of Bank's name

58. Except with the written consent of the Bank, no banking institution,

company or other person shall carryon business under, or be registered under the

Companies Act, 1973 (Act No. 61 of 1973), or any law governing banking

institutions or any other law, by a name -

(a) which is identical with the name of the Bank, or which corresponds

in such a manner to the name of the Bank that it could be

misleading; or

(b) which includes in conjunction with the word "bank" or its

derivative or translation in any language the word "central",

"government", "reserve", "royal" or "state" or any derivative of

any such word or any translation of any such word in any language.

Regulations and by-laws

59. (1) The Minister may, in consultation with the Bank, make

regulations in relation to any matter which the Minister considers necessary or

expedient for the effective carrying out of the objects of the Bank or the

achievement of the purposes of this Act.

(2) The Board may make by-laws or issue directives or instructions,

not inconsistent with the provisions of this Act, in connection with any matter

which it considers necessary or expedient for the good government of the Bank,

the conduct of its business or the employment of its staff.

Repeal of law and savings

60. (1) Subject to section 2 and subsection (2) of this section, the

No. 1761 Government Gazette 29 December 1997 43

Act No. 15, 1997 BANK OF NAMIBIA ACT, 1997

Bank of Namibia Act, 1990 (Act No.8 of 1990), is hereby repealed.

(2) Anything done in terms of a provision of the Act repealed by

subsection (1) and which mayor is required to be done in terms of that Act, shall

be deemed to have been done in terms of the corresponding provision of this Act.

Construction of certain reference

61. A reference in any other law to the South African Reserve Bank,

unless the context otherwise indicates, shall be construed as a reference to the

Bank.

Short title and commencement

62. (1) This Act shall be called the Bank of Namibia Act, 1997

and shall come into operation on a date determined by the Minister by notice in

the Gazette.

(2) Different dates may be determined under subsection (1) in respect

of different provisions of this Act.

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