GIPF breaks silence on loan saga

10 September 2019 | Crime

The CEO and principal officer of the Government Institutions Pension Fund (GIPF), David Nuyoma, says the fund had from the outset given its full cooperation in the investigation into non-performing loans under its Development Capital Portfolio (DCP) loan scheme.

Millions of dollars are yet to be repaid.

Nuyoma was responding to Prosecutor-General Martha Imalwa's unexpected announcement recently that she will not prosecute in the majority of cases that have been under investigation for 10 years, reportedly due to lost documents or a lack of evidence.

The DCP matter was sub judice until 21 August and now the PG has pronounced that she will only prosecute two cases. The first prosecution is expected in October.

Nuyoma, however, said he does not know which cases are to be pursued.

“It is difficult to comment on the PG's memory. I have not seen her for many years. It is difficult to know what she is saying. The GIFP has provided whatever it thought could be helpful,” Nuyoma said yesterday at a press briefing.

He said the GIPF had given the police and forensic investigations nearly 200 ledger files dealing with the DCP loans. “We want this matter to be closed and we are still willing to provide information on whatever file,” Nuyoma said.

He said the PG's pronouncement does not in any way affect the fund's investments and operational philosophy.

“[The] fund remains in a healthy and sound position,” Nuyoma said.

He said the GIPF has learnt hard and valuable lessons from the DCP loan scheme and has since “strengthened on the weak investment governance that prevailed at the time”.

Not a single director, board of trustee or defaulting DCP lender has so far been brought to book despite the GIPF having laid a criminal case with the police.

Nuyoma said from these lessons, subsequent unlisted investment programmes are now ring-fenced and managed by professional managers. To date, the GIPF has committed N$6.9 billion to unlisted assets. The fund's assets have grown to about N$120 billion as of 1 April.



DCP loan scheme

The loans were taken out during 1995 to 2005 when the GIPF disbursed a total of N$661.2 million to 21 companies by way of equity and debt.

Nuyoma said some of the companies experienced difficulties, either through poor management, poor governance and negative changes in the business environment. In 2005 the GIPF put a moratorium on the loan scheme, to ensure proper divestiture of the 21 companies, which was followed by a number of investigations into the DCP.

To date, most of the DCP investments have been disposed of or written off, with the exception of three performing loans. These are the Etosha Fisheries, FNB Holdings Namibia and Bank Windhoek loans.

Given the three performing loans the GIPF still holds today, the total unrealised gain by the end of March this year stood at N$988.7 million.

Similarly, by the end of March this year, 12 of the 21 investments incurred losses of N$386.6 million, and a total of N$1.1 billion was collected in the form of dividends and interest and capital repayments.

Nuyoma said the GIPF exited from the 12 companies that failed to perform “in a responsible, way under the circumstances prevailing at the time”.

Six companies were liquidated, either at the insistence of the GIPF or other creditors, or through voluntary liquidation.



Zero returns

Three companies have completely failed to repay anything on their DCP loans. Among these is Tsogang Investments (Pty) Ltd, set up as a special purpose vehicle to acquire a 12% shareholding in the !Uri !Khubis Abattoir at Witvlei. It received N$5 million from the DCP loan scheme. Omina Investments (Pty) Ltd, which received N$12 million, also failed to pay a cent.

Coen Wium, formerly described as the late Aaron Mushimba's right-hand man, was involved in both the Witvlei abattoir and Omina.

The third company is Sepiolite Production (Pty) Ltd, which received N$10 million. Former president Sam Nujoma's son-on-law, David Iimbili, was involved with this company.



Only some paid

The two companies that “inflicted the heaviest losses” on the DCP scheme was the Namibia Grape Company (NGC) and the //Karas Abattoir and Tannery, formerly known as Ostrich Production Namibia.

The NGC got N$164.6 million and only repaid N$56 million.

The //Karas abattoir got N$179 million and only N$18.5 million was recouped.

Ongopolo Mining and Processing has repaid N$50.4 million of its N$70 million loan. The GIPF has since acquired shares in Weatherly International, which took over the company. Namibia Pig Farm (Pty) Ltd got N$26.4 million and repaid N$9.8 million.

Omaheke Tannery & Leather Processing only returned N$2 million of its N$23 million loan.



Six performing and

exited loans

The Namibia Housing Enterprise (NHE) got collateral of N$15.8 million and has repaid all money.

Mushimba's Windhoek Country Club & Resort repaid N$142.9 million of its N$120 million loan. Its sister company, the Swakopmund Station Hotel, repaid N$40 million of its N$40 million loan.

Multiline Investments (Pty) Ltd, which received N$20 million, has repaid N$23.3 million, which includes interest, and Tutunge Investments (Pty) Ltd, which received N$4.6 million, has repaid N$5.6 million.

Preferred Management Services, which received a N$7 million revolving credit facility, has repaid this in full.

[email protected]

CATHERINE SASMAN

Similar News

 

'He decided to flee'

1 hour ago | Crime

Defence minister Penda Ya Ndakolo says Benisius Kalola (32), the second unarmed civilian killed during Operation Kalahari Desert this year, was shot when he fled...

280 cops deployed against poachers

1 hour ago | Crime

The Namibian police have deployed 280 members to assist in the fight against poaching.Inspector-general Sebastian Ndeitunga says these members, selected from across the country, are...

Stabbed to death over a piece of meat

1 day - 18 September 2019 | Crime

A man was stabbed to death on a farm near Gobabis, after a fight erupted over a piece of meat. The incident occurred...

Ahowe otashi ti ahowe

3 days ago - 16 September 2019 | Police And Crime

Sebastian Ndeitunga okwa popi kutya ahowe osha hala okutya ahowe na kape na we efatululo limwe li lipo.Ndeitunga okwa popi ngaaka pethimbo kwa patululwa pambelewa...

Rape: No means no

6 days ago - 13 September 2019 | Crime

Police chief Sebastian Ndeitunga yesterday underlined a woman's right to say no and urged Namibians to band together to end the epidemic of violence by...

Omukomeho gwombelewa yomupresidende a ponokelwa

1 week ago - 12 September 2019 | Crime

Opolisi yaNamibia otayi ningi omakonaakono moshipotha shonkambadhala yedhipago, konima sho oongangala dha homata dhayaha omukomeho gwombelewa yomupresidende, omunamimvo 51, Moses Pakote, sha ningilwa megumbo lye...

Manhunt after shooting, robbery

1 week ago - 11 September 2019 | Crime

The police are investigating a case of attempted murder, after armed robbers shot the executive director in the Office of the President, 51-year-old Moses Pakote,...

90 000 litres of fuel smuggled

1 week ago - 11 September 2019 | Crime

Acting economist in the petroleum directorate at the mines and energy ministry Abednego Ekandjo, said the ministry has an ongoing awareness campaign targeting illegal fuel...

Rapes, bloodshed mar weekend

1 week ago - 11 September 2019 | Crime

A string of rapes were reported over the weekend, the majority of which involved minors.A man also allegedly tried to suffocate his wife with a...

President's aide shot, robbed

1 week ago - 10 September 2019 | Crime

The executive director in the private office of President Hage Geingob, Moses Pakote, was shot last night during a robbery at his home by unknown...

Latest News

Roar young lions, roar!

1 hour ago | Columns

Youth without a consistent voice are inevitably excluded from the pockets of power that exist throughout societies.Youth who become praise-singers and imbongis, even when they...

Teko trio walk free

1 hour ago | Justice

Teckla Lameck, Jerobeam Mokaxwa and Chinese national Yang Fang, known as the Teko trio, have been found not guilty of all charges relating to a...

'He decided to flee'

1 hour ago | Crime

Defence minister Penda Ya Ndakolo says Benisius Kalola (32), the second unarmed civilian killed during Operation Kalahari Desert this year, was shot when he fled...

280 cops deployed against poachers

1 hour ago | Crime

The Namibian police have deployed 280 members to assist in the fight against poaching.Inspector-general Sebastian Ndeitunga says these members, selected from across the country, are...

Uanivi gets Warriors chance

1 hour ago | Sports

African Stars veteran defender Pat-Navin Uanivi has finally been selected for the national team after years of being omitted. Uanivi forms part of Brave Warriors...

Horn suspended for alleged doping

1 hour ago | Sports

South African women's 100m record holder Carina Horn has been suspended from competition over doping allegations.The Athletics Integrity Unit (AIU) announced on Monday: “The AIU...

'Hitman' faces tough brawl

1 hour ago | Sports

Former two-time world champion Paulus 'Hitman' Moses is set for tough night, as he not only faces Russia's Adlan Aburashidov, but also the home-ground advantage...

Loubser ready to get his...

1 hour ago | Sports

Four years ago, Cliven Loubser was inspired after watching his native Namibia score a try against New Zealand and earn their first Rugby World Cup...

Billionaire pushes oil deal

1 day - 18 September 2019 | Energy

Comsar, the proponent of a 250 megawatt power station, says the government is moving at snail's pace in getting the project off the ground.The company,...

Load More