WKH challenges NaCC in court
Breach of internal procedures alleged
The law firm is challenging the commission's decision to reopen a previously closed case as part of a new investigation.
Prominent law firm Dr. Weder, Kauta & Hoveka Inc (WKH), along with Preferred Land Development Holdings (PLDH), has taken the Namibian Competition Commission (NaCC) to court, accusing it of overreach and irrational conduct in reopening a previously closed investigation.
The legal challenge, now before the Windhoek High Court as a judicial review application, centres on the commission’s investigation into allegations related to Bank Windhoek mortgage transactions – specifically claims that WKH allegedly had an exclusive agreement with the bank requiring clients to use its conveyancing services.
The applicants argue that the commission acted beyond its legal powers and relied on flawed reasoning to, as part of this investigation, revive a previous probe that was formally closed in 2020.
Exclusive deal complaint
The probe into Bank Windhoek stems from a 2022 complaint alleging that the exclusivity deal between the bank and WKH limited client choice, excluded other law firms, and risked inflating costs or compromising service quality.
Such conduct may contravene Section 23 of the Competition Act, which prohibits agreements that substantially lessen competition.
The complaint triggered a wider investigation into WKH’s involvement in the Osona Village development, the same matter previously shelved by the commission.
WKH argues that no new evidence was provided to justify reopening the Osona case and that the Bank Windhoek complaint was unrelated.
“Because there was half a lemon and half an orange, this added up to one apple. An arbitrary and irrational decision was made by the secretary of the commission, who took into account irrelevant considerations,” the law firm argues in court papers.
Jurisdiction disputed
The legal authority of the commission to initiate the investigation is also being challenged. WKH contends that the commission’s secretary, Vitalis Ndalikokule, acted without a formal resolution from the board and in breach of internal procedures.
While the commission has not denied the timeline of events, WKH described its response as vague.
“An honest account of the facts was required from the commission, but instead, evasive and obtuse explanations were given,” WKH states in court filings.
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The legal challenge, now before the Windhoek High Court as a judicial review application, centres on the commission’s investigation into allegations related to Bank Windhoek mortgage transactions – specifically claims that WKH allegedly had an exclusive agreement with the bank requiring clients to use its conveyancing services.
The applicants argue that the commission acted beyond its legal powers and relied on flawed reasoning to, as part of this investigation, revive a previous probe that was formally closed in 2020.
Exclusive deal complaint
The probe into Bank Windhoek stems from a 2022 complaint alleging that the exclusivity deal between the bank and WKH limited client choice, excluded other law firms, and risked inflating costs or compromising service quality.
Such conduct may contravene Section 23 of the Competition Act, which prohibits agreements that substantially lessen competition.
The complaint triggered a wider investigation into WKH’s involvement in the Osona Village development, the same matter previously shelved by the commission.
WKH argues that no new evidence was provided to justify reopening the Osona case and that the Bank Windhoek complaint was unrelated.
“Because there was half a lemon and half an orange, this added up to one apple. An arbitrary and irrational decision was made by the secretary of the commission, who took into account irrelevant considerations,” the law firm argues in court papers.
Jurisdiction disputed
The legal authority of the commission to initiate the investigation is also being challenged. WKH contends that the commission’s secretary, Vitalis Ndalikokule, acted without a formal resolution from the board and in breach of internal procedures.
While the commission has not denied the timeline of events, WKH described its response as vague.
“An honest account of the facts was required from the commission, but instead, evasive and obtuse explanations were given,” WKH states in court filings.
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