THE Namibia Revenue Agency is in hot pursuit of 42 companies caught with fake tax-good standing certificates obtained in an attempt to manoeuver around immigration laws.
The tax authority confirmed to The Issue that it has opened 41 criminal cases between January and December last year and one case this year.
The Chinese-owned company contracted to build the ruling Swapo party’s head office, Unik Construction Engineering Namibia, is among the 42 companies flagged for allegedly using falsified tax-good-standing certificates or tax-clearance certificates in an attempt to secure work permits for its four employees late last year. The action led to the company’s financial manager being arrested.
The multinational company, which scored hundreds of millions in government construction tenders, is one of 42 companies flagged for allegedly using falsified tax-good-standing certificates to avoid fully complying with the country’s immigration and tax laws.
Other entities also under investigation include At Helmsman Group, which belongs to controversial Chinese businesswoman Qiaoxia (Stina) Wu.
The Ondangwa Private Hospital is also on the list after five of its employees were flagged for having used a falsified tax-good-standing certificate in their work permit applications, as well as a Zimbabwean-run private school based in Windhoek. Ondangwa Private Hospital did not respond to detailed questions emailed early this month.
NamRA and the Ministry of Home Affairs, Immigration, Safety, and Security uncovered a syndicate selling fake tax-good-standing certificates and tax-clearance certificates to companies trying to fraudulently obtain work and residency permits for their foreign employees.
Home affairs rules require a foreign national and the company they work for to be tax-compliant if they are to be granted a work permit.
Investigations by the authorities led to the arrest and suspension of one NamRA employee, while an employee of Profile Investment, the company contracted to build the revenue agency’s e-tax online system, has been barred from the NamRA premises.
NamRA spokesperson Yarukeekuro Ndorokaze said that the tax authority is working in collaboration with the home affairs ministry and the police to curb the scheme, which now appears contained.
“All reported cases, accompanied by the relevant affidavits, have been processed through the responsible office in liaison with the Namibian Police Tax Evasion Unit attached to NamRA for criminal cases to be opened,” Ndorokaze said in his emailed response.
Ndorokaze said NamRA, in January last year, assigned staff to work from the Ministry of Home Affairs, Immigration, Safety and Security to provide advice to the Immigration Selection Board on the authenticity of tax-clearance certificates and tax-good-standing certificates placed before the board for consideration of work permit applications. He said the collaboration saw the flagging and intercepting of the fake certificates.
“It is crucial to note that these cases happened during the early months of 2023, followed by a drastic reduction towards the end of 2023, due to the collaboration between NamRA and the ministry. For 2024, only one case was flagged between January and March,” he said.
Home affairs executive director Etienne Martiz told The Issue last week that his ministry has been working closely with the tax authority to ensure the practice is stopped. He added that his ministry is providing a supporting role in this matter because issues of tax compliance are in NamRA’s jurisdiction.
Politically connected
Senior government officials have, however, expressed their concerns about political interference in the law enforcement process. Impeccable sources said that senior ruling party politicians have attempted to apply pressure on law enforcement officials to go easy on those under investigation, especially the Chinese suspects. The politicians allegedly complained that investors were being ill treated.
In November last year, Jiaxue Liao, a finance manager at Unik Construction and Engineering, was arrested for allegedly submitting a false tax-good-standing certificate on behalf of Unik Construction to the home affairs ministry. The said certificate was used by four of his colleagues while applying for work permits.
Unik Construction and Engineering is a politically connected Chinese company that is currently contracted to build the N$1 billion Swapo head office.
In 2016, it was awarded a Roads Authority N$967 million tender for the construction of the highway between Swakopmund and Walvis Bay.The contract was later extended to include an additional 12 kilometres and four bridges.
A N$41 million NamWater High Dune to Mile 7 pipeline project and a water supply project in Omaheke. In 2019, it won a N$1 billion tender for the rehabilitation of the Kranzberg and Walvis Bay-Swakopmund railway lines. In 2021, it won a tender to construct a 6.8km road in the Ohangwena region for N$24 million. It also recently submitted a joint venture bid with West Trading CC for the construction of the Ohangwena Regional Council’s offices at Eenhana. The bid amount was N$259 million. The company did not respond to detailed questions emailed three weeks ago.
This article was produced in partnership with Integrity Namibia.