Africa-Press – Namibia.
The High Court has ordered the Bank of Namibia (BoN) to return over N$20 million taken from an investment account held by retired Democratic Republic of Congo (DRC) army general Francois Tete Olenga.
The court found that the central bank acted outside its legal authority when it forfeited the funds.
Acting High Court judge Johanna Prinsloo delivered the judgment this week, setting aside the decision made in August 2023 by BoN deputy governor Leonie Dunn.
She also declared all related decisions and actions unlawful.
Prinsloo ruled that only the Bank of Namibia’s Board or the Governor has the power to block or forfeit funds.
“The discretion to block an account lies with the Board or the Governor as a result of the deleterious effect such action would have on the affected person,” the judge stated.
Prinsloo found that Dunn did not independently exercise discretion but rather implemented the Board’s decision.
“The Board’s ratification cannot bestow upon the director of exchange control and legal services the authority that he did not possess initially,” the judgment read.
The case involves funds Olenga received from Breadfield Trade Ltd, a United States-based company, between 2010 and 2012.
The transfers totalled more than N$17 million and were later moved into an investment account at Nedbank Namibia.
By the time the account was frozen, the balance had grown to over N$20 million.
In August 2023, the BoN, acting on instructions from the Financial Intelligence Centre (FIC), issued a forfeiture order, claiming the origin of the funds was unclear.
The FIC had told Nedbank in 2019 to monitor Olenga’s accounts and restrict transactions.
They cited inconsistencies between the deposits and Olenga’s declared source of wealth.
Despite being asked to provide documents, Olenga was said to have failed to submit enough evidence.
Olenga, through his lawyer Sisa Namandje, challenged the forfeiture in court.
He argued that the funds were legally earned and that he complied with all Namibian regulations.
He also said that Dunn should have recused herself from signing the order, as she was previously involved in the matter while serving as FIC director.
The court also reviewed the Foreign Currency Exchange manual used by the BoN.
It found the manual had not been properly published and did not carry legal effect.
While the court did not declare the manual invalid, it ordered BoN to publish the manual and all future changes in the government gazette within three months.
Prinsloo said the manual did not exist when Olenga deposited the funds in 2010 and could not be applied retroactively.
The court ordered the bank, Dunn, and BoN’s director of exchange control, Bryan Eiseb, to pay Olenga’s legal costs, limited to one legal practitioner.
Nedbank Namibia and the FIC were listed as respondents in the case but did not oppose the application.
For More News And Analysis About Namibia Follow Africa-Press
