Namibia: ACC to Look Into Swiss Leaks

NAMIBIANS who have Swiss bank accounts could face an Anti-Corruption Commission investigation if they evaded tax and money was transferred after the graft body was established.

ACC director Paulus Noa told The Namibian yesterday that the ACC can only investigate the accounts if any Namibian holders of Swiss bank accounts evaded tax.

While it is not illegal to have money in an offshore bank account in Switzerland, tax evasion through the use of a Swiss account and money laundering – in which the proceeds of crime are disguised as legitimate earnings – would be an offence in Namibia.

An investigation by the International Consortium of Investigative Journalists this week exposed secret bank accounts maintained for criminals, traffickers, tax dodgers, politicians and celebrities in Switzerland.

The report said there are 20 clients associated with Namibia, of which four hold Namibian passports or nationality, who have bank accounts in Switzerland. They have close to N$45 million in Swiss offshore bank accounts.

The unnamed Namibian clients’ accounts were opened between 1978 and 2004 and are linked to 15 bank accounts.

There are fears that more money could be saved in other tax haven countries, especially since Namibia started attracting big oil and diamond dealers from 2004 onwards.

The leaks revealed that Namibia is ranked 166 among the countries with the biggest amounts in the leaked Swiss files.

The in-depth report said the approximate amount linked to Swiss bank accounts is N$45 million (US$3,9 million) while the highest amount associated with a client connected to Namibia was US$1,7 million (around N$20 million).

Swanu president Usutuaije Maamberua, a former permanent secretary in the Ministry of Finance, yesterday said most African leaders have a habit of stashing their money in offshore accounts.

He said politicians and heads of government institutions should be scrutinised in order to give a good example.

This, he said, can be done through consistent lifestyle audits and declarations of interest.

It remains unclear which Namibian politicians own assets outside the country and hold money in offshore bank accounts, since parliamentarians’ asset register has not been updated since 2009. Questions have been raised about why the register has not been updated, amid claims that politicians are strategically delaying its update.

“There should be an audit and declaration to determine how people have acquired their money,” the former academic said.

Maamberua called for strict financial regulations to ensure that dubious financial transactions are detected.

Investigations by the International Consortium of Investigative Journalists, through the French newspaper Le Monde, showed that Swiss bank HSBC profited from doing business with dictators, blood diamond dealers, and arms dealers who channelled weapons to child soldiers in Africa.

“In many instances the records describe questionable behaviour, such as bankers advising clients on how to take a range of measures to avoid paying taxes in their home countries — and customers telling bankers that their accounts are not declared to their governments,” the report said.

According to the report, some clients linked to millions of dollars in their accounts are politically-connected figures.

The in-depth investigative report warned that it is not illegal in most countries to maintain offshore bank accounts, and being identified as holding an HSBC private bank account is of itself no indication of any wrongdoing.