Opposition demands answers as GIPF loses over N$800 million in offshore investments

Opposition parties are demanding answers after the Government Institutions Pension Fund (GIPF) reportedly lost about N$815 million in underperforming offshore investments, raising concerns over accountability and pension fund management. The concern follows reports that the GIPF could lose close to N$1 billion, including an “irrecoverable” N$815 million put in the hands of a South African investment firm. This investment was made through a company called Signal Structured Finance Fund and managed by South African-based TriAlpha Investment Management as part of the GIPF’s offshore portfolio. The fund has previously written off millions in unpaid loans and losses linked to theft, with no public record of accountability. National Unity Democratic Organisation (Nudo) parliamentarian Vetaruhe Kandorozu last week said it is concerning that the GIPF continues to suffer investment losses. “One wonders if the GIPF is a get-rich-quick scheme for well-connected individuals. Between 1995 and 2005, the now-defunct Development Capital Portfolio disbursed just over N$661 million to 21 companies by way of equity and debt,” he said. According to Kandorozu, none of the companies that benefited from the GIPF exist or paid money over to the GIPF, and none of the beneficiaries were arrested for misusing public funds. This, he said, was supposed to be a lesson – not only for GIPF, but also for the regulator. “Unfortunately the GIPF, the regulator and the beneficiaries are all in cahoots eating from the poorest people, who are civil servants who have been denied benefiting directly from the pension fund they have invested in over the years,” he claimed. Kandorozu claimed that Namibian elites went into joint ventures with South African companies to benefit from the funds. “We are shocked to learn that N$815 million is gone. As a result I call for proper forensic investigation to look into this situation as a matter of urgency. “Why is the GIPF not being treated like the Social Security Commission and Avid investment, which was brought before court and all the culprits were punished by competent judges?” he asked. He said those involved in the loss of this money must be exposed and face trial. “We must not be lied to that this will not affect their [civil servants’] pension payments. It will, because the growth has been affected and money is gone. Those responsible must be arrested,” Kandorozu said. CALLING THE BOARD TO PARLIAMENT Independent Patriots for Change (IPC) spokesperson Imms Nashinge says the GIPF board should appear before the parliament to account for investment losses. “The GIPF board must be required to appear quarterly before a dedicated parliamentary committee to answer for its investment decisions and performance,” he says. Nashinge calls for an immediate, independent, and forensic audit of all the fund’s foreign-based investments. “The audit must be made public and must clearly detail the investment decisions, the individuals who approved them, and the full extent of the exposure and losses,” he says. “Perhaps it’s about time we push for legislation that explicitly removes the shield of corporate liability for trustees and fund managers in cases of gross negligence and misconduct.” Those who have approved of loss-making investments, Nashinge says, must be held personally and financially liable, and where criminal intent is found, face prosecution. “We need to know how the investments in international markets and funds are audited? I understand some of these are losing money, but covered up by the fact that the fund is making a profit overall,” he says. He says the GIPF must provide a report on all its international investments and how each has been performing over the past three years. If not, the IPC will conclude the fund is hiding something. Nashinge calls for a “fresh culture of transparency, not secrecy”. “I have asked in parliament that all audited reports on international investments be provided, but I was not satisfied with the answer, because if they are audited, how can N$815 million now just be gone?” he asks. ‘LOOTING PLATFORM’ United Democratic Front spokesperson Mabasen /Narib has labelled the fund as a looting platform for certain individuals. “The GIPF is now becoming a platform for people to loot money. That money is going missing and nobody is being held accountable,” he says. /Narib says investigations are not being carried out and when they are, they do not identify the main culprits. He says by the time people collect their pension, there won’t be money left if due diligence continues to lack substance.