Xingfeng Investment has admitted to the Parliamentary Standing Committee on Natural Resources that a monthly service fee of N$10,000 is being paid to the Daure Daman Traditional Authority for a consent letter.
Xingfeng Operations Manager at Uis, Frank Li, says the service fee payment is part of a Memorandum of Understanding with the traditional authority.
On Tuesday, the Parliamentary Standing Committee on Natural Resources probed the Daure Daman Traditional Authority councillors, who indicated that Xingfeng Investment pays them N$400 or N$500 each as a sitting fee for meetings.
The payments were allegedly made when Xingfeng Investment was in the process of applying for a consent letter for the company to explore minerals in the Uis area.
The parliamentary standing committee presented the information to Xingfeng Investment on Wednesday to verify the claims.
Although the Daure Daman Traditional Authority promised to have a second hearing with the committee, they cancelled their appointment at the last minute.