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
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
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.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
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.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
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.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1 I
