Fishrot company embroiled in fresh tax scandal

Icelandic fishing company Samherji, which is at the centre of the Fishrot corruption investigations, is suspected of using the Faroe Islands to avoid paying employee income tax in Namibia. The islands are located halfway between Norway and Iceland. The Namibian reports that the company is accused of using the islands to avoid paying N$43m in taxes in Namibia. No formal charges have been laid, but Samherji could face charges of illegal set-up and tax evasion in the Faroe Islands. The alleged tax evasion is believed to involve 14 Icelandic fishermen who were working in Namibia but were allegedly registered as cargo vessel employees for Samherji's subsidiary on the Faroe Islands. Because of this suspected dubious arrangement, the fishermen reportedly evaded paying tax in Namibia from 2016 on three Samherji vessels. Legalbrief reports that several suspects have been charged with fraud, corruption and money laundering in connection with the Fishrot fishing quotas corruption scandal. They are accused of having been involved in a scheme in which Icelandic companies paid them at least N$103m to get access to Namibian fishing quotas between 2014 and 2019. The accused are former Ministers Sacky Shanghala and Bernhard Esau, businessman James Hatuikulipi, Tamson Hatuikulipi, Phillipus Mwapopi, Otneel Shuudifonya, Pius Mwatelulo, Mike Nghipunya, Ricardo Gustavo and South African-based lawyer Marèn de Klerk.

Full report in The Namibian