CHAMWE KAIRA
Minister of finance, Erica Shafudah, has tabled the Accountants and Auditors Regulatory Authority Bill in the National Assembly, setting the stage for a major overhaul of Namibia’s accounting and auditing regulatory framework.
Shafudah said the legislation marks a “significant milestone” in strengthening financial accountability, enhancing transparency in reporting, and aligning Namibia’s professional standards with international best practice.
The proposed law seeks to repeal and replace the Public Accountants’ and Auditors’ Act of 1951, which has governed the profession for over seven decades.
According to the minister, the existing legal framework no longer reflects modern developments in the financial sector, including the rise of forensic accounting, data analytics, sustainability reporting, and expanded audit responsibilities beyond traditional financial statement verification.
“Accurate and transparent financial reporting is the bedrock upon which public confidence in both government and private institutions rests,” Shafudah said.
At the centre of the reforms is the establishment of the Accountants and Auditors Regulatory Authority (AARA), which will replace the Public Accountants’ and Auditors’ Board (PAAB) while retaining and expanding its mandate.
The new authority will regulate auditors, accountants, and accounting technicians, as well as firms operating in the sector.
It will also function as an independent body tasked primarily with protecting the public interest.
A proposed regulatory clause has set out the legal framework governing the powers of appointed inspectors and forensic inspectors in conducting searches and seizures during investigations of alleged contraventions of the law.
Under the provision, inspectors and forensic inspectors will be required to obtain a warrant issued by a judge or magistrate before conducting searches or seizing evidence.
Applications for such warrants may be submitted by an inspection and quality assurance committee of the Board, an accredited body, or by the inspectors themselves.
However, the clause also provides for limited circumstances under which inspections may be carried out without a warrant.
In such cases, an inspector or forensic inspector must first identify themselves to the owner or person in control of the premises and clearly explain the purpose of the entry and search.
A warrantless inspection will only be permitted where the owner or responsible person gives consent.
The clause further outlines an additional exception allowing urgent warrantless inspections.
This applies where an inspection and quality assurance committee of the Board or an accredited body has reasonable grounds to believe that a search may yield relevant information, that a warrant would likely be granted if applied for, and that any delay in obtaining such a warrant would defeat the purpose of the investigation.
In such urgent situations, the committee must act swiftly to secure relevant information, particularly where inspectors or forensic inspectors are unable to obtain a warrant in time.
The provision is intended to balance effective regulatory enforcement with legal safeguards governing entry, search, and seizure procedures.
