Namibia: - WikiLeaks



Namibia:

• Mining is the largest economic contributor with N$ 5,5 billion or almost 12 per cent to gross domestic product at the end of 2006,followed by fisheries (N$ 4 billion) and agriculture, with 8 per cent, including the informal sector.

Chinese Interests in Namibia:



• Feb 2007: President Hu Jintao pledged to provide Namibia with RMB 1 billion of concessional loans, 100 million US dollars of preferential export buyer's credit, RMB 30 million yuan of grants and RMB 30 million of interest-free loans during his visit to Namibia. (These were the loans used to pay for the Nuctech deal)

• In 2006 China-Namibia trade was US$ 255.5 million, up from 2003 when China-Namibia trade was US$ 74.57 million. First 7 months of 2007 had US$200 million in trade.

• China exports to Namibia vehicles, machinery, electrical appliances, cigarettes, textiles, and shoes. China is beginning to seel computer software to Namibia.

• Namibia exports uranium, copper, manganese, sea products, and fur products.

o Namibia is the fourth-largest exporter of nonfuel minerals in Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten.

• According to the contracts signed in 2007, the Chinese side will purchase Namibian products worth US$34.7 million, including marble, fish meal, copper, manganese ore, tuna, etc.

• Rössing Uranium Mine

o One of the largest open pit uranium mines in the world. It is located in the Namib Desert 65 kilometres from Swakopmund at the Khan River. Discovered in 1928, it started operations in 1976 and in 2005, produced 3,711 tonnes of uranium oxide, making it the fifth-largest uranium mine of the world, producing 8 per cent of the world's uranium.

o The mine is owned by 69% Rio Tinto Group, 15% the Government of Iran, 10% IDC of South Africa, 3% (Government of Namibia), and 3% by 13 individual shareholders.

o Good resource:

• Until last year, Mr. Hu (the son) was president of Nuctech, a Beijing-based maker of advanced security scanners used in airports, customs warehouses and other traffic points. He has since been elevated to Communist Party secretary of Tsinghua Holdings, the state-controlled firm that runs Nuctech and about 30 other businesses.

o

China-Namibia bilateral relations



Updated: 2007-01-26 09:59

1. Political Relations

The People's Republic of China and the Republic of Namibia established diplomatic relations on March 22, 1990. Since then, the relations between the two countries have been developing smoothly. The ministries of foreign affairs of China and Namibia set up a mechanism of consultation in January 2000.

Chinese leaders and senior officials who visited Namibia are as follows: President Jiang Zemin (1996), Special Envoy of the Chinese Government, Vice-Premier of the State Council Wu Xueqian (1990), Vice-Chairman of the Standing Committee of the National People's Congress Sun Qimeng (1991), State Councilor and Minister of Foreign Affairs Qian Qichen (1992), Vice-Premier Zhu Rongji (1995), Vice-Chairman of the Central Military Commission of Communist Party of China, State Councilor and Minister of Defense Chi Haotian (1998), Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference Chen Jinhua (1998), Vice-Chairman of the Standing Committee of the National People's Congress Xu Jialu (1999), Foreign Minister Tang Jiaxuan (2000), State Councilor Luo Gan (2000), Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference Wang Wenyuan (2002), and Chairman of the National Committee of the Chinese People's Political Consultative Conference Li Ruihuan(2003).

Namibian leaders who visited China are as follows: President Sam Nujoma (1992, 1996, 1999 and 2000), Prime Minister Hage Geingob (1991), Speaker of the National Assembly Mose Tjitendero (1994), Minister of Foreign Affairs Theo-Ben Gurirab (1995 and 2000), Chairman of the National Council Kandy Nehova (1997), Deputy Prime Minister Hendrik Witbooi (1997), Deputy Speaker of the National Assembly Willem Konjore (2002), and General Secretary of SWAPO Ngarikutuke Tjiriange(2002) .

2. Trade Relations and Economic and Technical Cooperation

Since the establishment of diplomatic relations, China has completed the drilling of wells and construction of generally affordable housing, pumping stations and a children's recreation center, and other aid-projects for Namibia. The current underway project is the construction of the local parliament buildings. The trade volume between the two countries reached US$ 49.112 million in 2002, of which China's export amounted to US$ 20.182 million and import totaled US$ 28.93 million.

3. Exchanges in the Fields of Culture, Education and Public Health

The Chinese and Namibian governments have concluded agreements on cultural and educational cooperation and have signed a protocol on dispatching medical team to Namibia by China. The two sides have exchanged cultural and educational delegations. At present, there are 4 Chinese teachers teaching in Namibia. 23 Namibian students are currently studying in China. A four-member Chinese medical team is now working in Namibia. The cooperation by two sides on television also started. According to the agreement reached by two countries, the Namibian national TV station began to broadcast the English programs of Chinese Central TV Station (the Fourth and Ninth channel) three times a week. Each broadcast lasts one hour.

Shanghai and Windhoek (Capital City of Namibia), the Town of Maqiao of Shanghai city and Okahanja, and Zhengzhou and Mariental established sister-city relations.

(From the website of Ministry of Foreign Affairs of the People's Republic of China)

Interpretation of China-Namibia Relations



Chinese Ambassador's view

Before completing his tenure of office and leaving Namibia in October 2007, H. E. Liang Yinzhu, Chinese Ambassador to Namibia, gave an interview to NEW ERA's journalist, in which His Excellency explained in details the latest development of China-Namibia relations.

Q: How would you like to comment on the relationship between China and Namibia?

A: Far as they are from each other geographically, China and Namibia established their traditional friendship in the 1960s and then made it deep rooted. When the Namibian people were struggling for independence, China stood firmly on their side and provided them with moral and material support by overcoming its own difficulties. The two countries established diplomatic relations the day after Namibia gained independence. The friendly cooperation between the two countries has ever since been developing in a steady and sound manner. In recent years, there have been frequent exchanges of high level visits, which greatly helps deepen mutual political trust and promotes cooperation in all fields with marked results. China significantly increased its assistance to Namibia and a number of projects were completed. H.E. Hu Jintao, President of the People's Republic of China, pledged to provide Namibia with RMB 1 billion of concessional loans, 100 million US dollars of preferential export buyer's credit, RMB 30 million yuan of grants and RMB 30 million of interest-free loans during his visit to Namibia in February 2007. Also during this visit, President Hu Jintao undertook to build two rural schools and one hospital for Namibia with Chinese assistance. The two sides are now discussing how to materialize this batch of financial assistance. Trade volume between the two countries increased rapidly and bilateral cooperation in such areas as economy, trade, jurisdiction, education, health, etc has been on the rise. More and more cities in the two countries got twinned with more commercial and cultural exchanges between the two peoples. Some Chinese businessmen came to Namibia to invest, who made contributions to enriching local markets, improving the living standards of the locals and arresting unemployment and poverty. In accordance with the MOU on the Implementation Plan for Organized Group Travel by Chinese Citizens to Namibia signed during President Hu Jintao's visit, Chinese travel agencies will start organizing tourist groups to Namibia as of 15 October 2007. In a word, acting on the Beijing Declaration and Plan of Action of the Beijing Summit of the Forum on China-Africa Cooperation held last year, the two sides are making concerted efforts to instill vigor and vitality into bilateral relations, which will greatly benefit the two countries and the two peoples.

Q: What is the trade volume between China and Namibia?

A: In recent years, our bilateral trade has been growing rapidly. When I just took up my post in 2003, China-Namibia trade volume of that whole year was US$74.57 million, which jumped to 255.5 million in 2006, three times of that in 2003. In the first 7 months of this year, our bilateral trade volume has already reached nearly 200 million. It is expected that the whole year's trade figure in 2007 would redouble compared with 2003.

Q: What products are traded between China and Namibia?

A: China mainly exports to Namibia commodities like vehicles, machinery, electrical appliances, cigarettes, textiles, and shoes. China is also beginning to sell computer softwares to Namibia. Namibia's exported goods to China include minerals like uranium, copper, and manganese, as well as sea products and fur products. China will strive to improve the trade structure with Namibia and increase imports from Namibia. When the Chinese government's economic and trade delegation headed by MR. Gao Hucheng, China's Vice Minister of Commerce, visited Namibia this April, the visiting Chinese entrepreneurs signed 13 business contracts with their Namibian counterparts after only one day's consultation. According to the contracts, the Chinese side will purchase Namibian products worth US$34.7 million, including marble, fish meal, copper, manganese ore, tuna, etc. That fully demonstrates that our bilateral trade is mutually complementary, full of potential, and will have a bright future.

Q: In what fields does China provide training for Namibia? Are there any figures to support what you say?

A: China attaches great importance to cooperation with Namibia in the field of human resources and capacity building. For years, China has helped Namibia in human resources training by providing training courses and academic scholarships in China as well as by sending teachers to Namibia. For instance, from 1998, the Ministry of Commerce of China began to hold training programs each year for government officials and technical personnel from Namibia and other African countries in areas like public administration, macroeconomics, agriculture, aquaculture, mining, and health. In 2006 alone, there were 62 Namibian officials and technical personnel going to China for such courses. From 2001, China offers 5 scholarships every year for Namibian students to study in Chinese universities. This year, the number of Namibian students awarded scholarships from China has increased to 21. The Chinese teachers have long been teaching physics and chemistry in the University of Namibia. This August, China further dispatched a teacher to Unam to support the Chinese language course there. The Ministry of Foreign Affairs and the Information Office of the State Council of China opens training seminars for government information officials and journalists of African countries regularly. Each year, there is one information officer from the Namibian Government and one journalist from a mainstream media institution in Namibia going to China respectively. From 2005-06, experts from the China Central Television came to Namibia and trained the NBC technicians in two phases. Indeed, China's training is an all-round effort to help Namibia's economic development and nation building.

Q: How do you think China and Namibia should carry forward their friendship?

A: China and Namibia should earnestly implement the Beijing Declaration and Beijing Action Plan passed during the Beijing Summit, and make joint efforts in the following fields: First, further strengthen high-level visits, so as to deepen our friendship and consolidate the political grounds of our bilateral relations. Secondly, promote our economic and trade cooperation to a broader scope and a higher standard by (1) speeding up the identification of projects which will use the grants and loans and the implementation of construction of rural schools and hospital pledged by President Hu Jintao during his visit to Namibia; (2) improving our bilateral trade structure and extending our trade cooperation; (3) expanding our cooperation in railway, telecommunication and other areas, and taking effective measures to promote the bilateral cooperation in mining, agriculture, and tourism. China will encourage more entrepreneurs to come and invest in Namibia, and conduct mutually beneficial cooperation with the Namibian side. Thirdly, further expand our exchanges and cooperation in education, culture, human recourses training, health, and promote people-to-people exchanges in order to learn from each other and achieve common development. Fourthly, continue and strengthen our coordination and cooperation in all international organizations including UN and WHO, with our common goal of building a harmonious world.

Namibia delays bail hearing in China graft case



(AFP) – 53 minutes ago

WINDHOEK — A Namibian court Wednesday delayed to next week a bail hearing for three people charged with corruption over a deal to buy security scanners from a firm linked to the son of China's president.

"The date for bail applications is set down for next week July 28 and 29," magistrate Pieter van Pletzen ruled.

The three accused, including the Africa representative for the state-owned Chinese firm Nuctech, were not present during the short court procedure. They have been behind bars since their arrest last week.

Nuctech representative Yang Fan and two Namibians, Teckla Lameck and Jerobeam Mokaxwa, were arrested after the Anti-Corruption Commission (ACC) discovered that a 12.8 million US dollar down payment on 13 scanners had been diverted to a firm called Teko Trading.

Their lawyer Sisa Namandje had asked for the postponement to have more time to prepare a Friday hearing when his clients will seek to regain assets seized and bank accounts frozen during the investigation.

Nuctech has a Namibian government contract to supply security scanning equipment in a 55.3 million US dollar deal, paid for with a Chinese loan granted when President Hu Jintao visited the country in 2007.

Hu's eldest son, 38-year-old Hu Haifeng, was the president of Nuctech until last year, when he was promoted to party secretary of Tsinghua Holdings, which controls Nuctech and over 20 other companies.

Between March and April, the 12.8 million dollar down payment was diverted to a firm called Teko Trading, equally owned by Lameck and Mokaxwa, investigators say.

All three accused later drew large sums from the Teko account, with Yang taking 16.8 million Namibia dollars (2.1 million US dollars), most of which he is said to have paid into an investment fund, investigators say.

Lameck and Mokaxwa are said to have spent money on expensive vehicles, farms and houses.

Graft Inquiry in Namibia Finds Clues in China



By MICHAEL WINES

Published: July 21, 2009

BEIJING — To the likely consternation of diplomats in both Beijing and faraway Windhoek, a newly minted initiative by Namibia’s government to root out official corruption has snared an early catch: three people who, Namibian prosecutors charge, helped win a lucrative contract for a Chinese company recently headed by the son of Hu Jintao, China’s president.

The charges against the three, including one Chinese national, have yet to be heard in court. There is no public evidence that President Hu’s 38-year-old son, Hu Haifeng, or other high officials of the company, Nuctech Company Limited, knew of the Namibian dealings.

But mere reports of the charges have already prompted Chinese government censors to block Internet surfers from searching for news about the younger Mr. Hu, Namibia or Nuctech, according to the California-based Internet site China Digital Times.

Separately, the office of Namibia’s prosecutor general, Martha Imalwa, said she had traveled to Beijing to request that Mr. Hu be interviewed in the case as a witness, but not as a suspect.

Until last year, Mr. Hu was president of Nuctech, a Beijing-based maker of advanced security scanners used in airports, customs warehouses and other traffic points. He has since been elevated to Communist Party secretary of Tsinghua Holdings, the state-controlled firm that runs Nuctech and about 30 other businesses.

Namibia prosecutors accuse Nuctech’s Africa representative, 39-year-old Yang Fan, and two Namibians of joining in a bribery scheme that secured a $55.3 million contract in May 2008 to install Nuctech scanners at customs inspection points across Namibia.

Most of the cost was to be borne by a so-called soft loan — usually a loan at below market rates or with other favorable terms — that China’s government granted Namibia on the condition that it purchase scanners from Nuctech.

Namibia’s government paid about $12.8 million to Nuctech in February. But prosecutors allege that most of that money was quickly transferred to a Namibian company listed as a Nuctech consultant, and then split among Mr. Yang and the two Namibian defendants.

The case came to light because of a new money-laundering law that requires Namibian banks to routinely report large money transfers to investigators. Prosecutors said that the three defendants in the Nuctech case appear to have spent much of the money on what officials called an enormous spending spree.

Nuctech has offered to send officials to Namibia to aid in the investigation, but has not commented publicly. The three defendants were to appear in court in Windhoek, Namibia’s capital, on Wednesday for a bail hearing.

Nuctech was created in 1997 as an offshoot of Tsinghua University, a Beijing campus with a heavy emphasis on technology where both President Hu and, later, his son were engineering graduates.

The company has risen rapidly to become one of the world’s top providers of security scanning equipment, supplying about 50 nations, including the United States. In late 2006, the company won a contract to install advanced scanners at all 147 of China’s airports to detect potentially dangerous liquids.

While the company’s products have won praise from users in places as diverse as Australia and Norway, Nuctech’s business practices have come under increasing scrutiny abroad.

The European Union is investigating whether the company has used soft loan deals from the Chinese government to effectively lower its prices and undercut competitors. South Africa’s Mail & Guardian newspaper reported that Nuctech’s agent in a $380 million scanner sale there was a company implicated in corrupt contracts involving the nation’s scandal-plagued Parliament. In the Philippines, legislators charged that the government’s customs agency overpaid in 2006 and 2007 when it reached a $150 million no-bid agreement, also financed by a soft loan, to install Nuctech scanners at transit points there.

Namibian critics also contend that their government grossly overpaid for the scanning equipment and that much of the excess payments ended up in private hands, including those of some Namibian politicians. Namibia’s inquiry into the deal is ongoing.

John Grobler contributed reporting from Windhoek, Namibia.

Giant Discovery off Africa



When I published my first newsletter in South Africa more than 30 years ago, I

revealed that the apartheidist government had entered into secret negotiations

with the Soviet Union about co-ordinated marketing of minerals both countries

produced, such as platinum. The story seemed incredible, so no-one picked up

on it. I knew it to be true, as emerged a long time later -- because my source was

the defence minister at the time.

Years later I learned that the Pretoria government had vetoed a search for oil off

the coast of Namibia, then administered by South Africa, despite the view of

experts that there could be major deposits, as there are off neighbouring Angola.

The politicians were worried that if oil were found, that would trigger major

domestic opposition to the secret plan – subsequently implemented -- to withdraw

from Namibia as a move to improve relations with foreign powers.

So it came as no surprise to me to hear that a British company’s seismic study

has now confirmed “giant structures” off the shores of Namibia that could contain

up to 10 billion barrels of oil and natural gas. If proved, that would be equal in

scale to Angola’s reserves and not far short of Mexico’s.

Tower Resources, a small exploration firm listed in London, says that there is

“significant probability” of hydrocarbons in three large prospects in blocks

covering 22,000 sq.kms at water depths of 200 to 3,000 metres. It plans further

seismic studies “with a view to drilling a first well within the next two years.”

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