Bank of Namibia conducts ‘sting operation’ on bribery concerns

Two people were arrested after attempting to bribe senior officials at the Bank of Namibia, its governor Ipumbu Shiimi, announced on May 16. They were caught during a "sting operation" conducted by the central bank and Anti-Corruption Commission, he said.

Two officials were offered 10,000 Namibian dollars (US$635.6) each in return for releasing funds from an account the central bank had blocked in February 2016, Shiimi said.

The governor explained the people who approached the staff, both Chinese nationals, had deposited N$1,700,000 at a commercial bank with the intention of repatriating the funds the same day they were deposited.

"The bank became suspicious of the transaction and blocked the funds in terms of the Exchange Control Regulations," he said. Under the regulations, individuals must approach authorised dealers for all foreign-exchange-related needs, providing identification and "suitable" documentary evidence where required.

In May 2016, the Chinese nationals approached the central bank, offering to discuss the situation regarding the blocked funds, Shiimi said. On realising the bank was not going to release the funds, they attempted to bribe officials, he added.

Working alongside the Anti-Corruption Commission, the central bank set up a "sting operation". Shiimi said the transaction was "covertly" being monitored by members of the commission, who arrested the suspects and took them into custody for "contravention of section 34 of Act 8/2003".

The bank account and its contents remains blocked, and is still subject to Exchange Control Regulations. The central bank did not respond to a request for comment regarding the operation or the people arrested.

"The Bank of Namibia strongly rejects any form of corruption and supports all efforts taken by government to stem out this evil from our society," Shiimi stressed.

"The bank would like to send a strong message to all those who are planning to engage in these types of acts that we do not condone such evils."