GIPF's massive kitty safe from broke government
GIPF CEO David Nuyoma says the government is respectful towards the mission of the pension fund and has so far not approached it for cash.
OGONE TLHAGE
WINDHOEK
The Government Institutions Pension Fund says the cash-strapped government is keeping its hands off the over N$120 billion kitty the Fund currently manages.
Its CEO, David Nuyoma, says the government is respectful towards the mission of the pension fund and has so far not approached it for cash. Nuyoma made the remark on the 'Evening Review' show when asked whether he was concerned that the government may turn to the pension fund for bailouts to fund infrastructure projects, ailing public entities and civil servants' salaries.
“At no time was I directed as CEO or principal officer, nor has my chairperson been directed, to finance or direct the funds in a particular manner and I think that has led to the robust growth of the fund,” he said.
“According to Nuyoma, the government respects the policies that the GIPF has adopted for the management of its funds.
“Not many funds are at the level of the GIPF. That is because of that respect of space between the employer and the pension fund. Those terms of reference have been respected,” he said. “We have been around and know what has to be done,” he added.
Ill-fated
DCP funds
Nuyoma also touched on the N$660 million GIPF had invested in unlisted instruments between 1995 and 2005.
He said GIPF had invested in 21 businesses, with 12 not performing as expected while three totally failed. The Fund learned its lesson, he said, and was moving on from that debacle.
“Overall, N$1.1 billion was realised out of the investment of N$660 million, thus having left a profit of N$450 million.
“There were lessons from that, and part of that was how best do we move forward without necessarily freezing to a point where we cannot operate in the unlisted space, and then came approaches that we are currently utilising through the regulators,” Nuyoma said.
GIPF was able to retrieve the money it had invested, he said.
“The process through the Companies Act has been exhausted, liquidation, sale of assets and whatever was supposed to have been done, and that is what has led to proceeds being realised in some of those companies,” he said.
“That is where we are and we look forward to the day that this becomes a closed chapter but we have learned our lessons from it and it is just wise for us not to forget and to say nothing happened.”
WINDHOEK
The Government Institutions Pension Fund says the cash-strapped government is keeping its hands off the over N$120 billion kitty the Fund currently manages.
Its CEO, David Nuyoma, says the government is respectful towards the mission of the pension fund and has so far not approached it for cash. Nuyoma made the remark on the 'Evening Review' show when asked whether he was concerned that the government may turn to the pension fund for bailouts to fund infrastructure projects, ailing public entities and civil servants' salaries.
“At no time was I directed as CEO or principal officer, nor has my chairperson been directed, to finance or direct the funds in a particular manner and I think that has led to the robust growth of the fund,” he said.
“According to Nuyoma, the government respects the policies that the GIPF has adopted for the management of its funds.
“Not many funds are at the level of the GIPF. That is because of that respect of space between the employer and the pension fund. Those terms of reference have been respected,” he said. “We have been around and know what has to be done,” he added.
Ill-fated
DCP funds
Nuyoma also touched on the N$660 million GIPF had invested in unlisted instruments between 1995 and 2005.
He said GIPF had invested in 21 businesses, with 12 not performing as expected while three totally failed. The Fund learned its lesson, he said, and was moving on from that debacle.
“Overall, N$1.1 billion was realised out of the investment of N$660 million, thus having left a profit of N$450 million.
“There were lessons from that, and part of that was how best do we move forward without necessarily freezing to a point where we cannot operate in the unlisted space, and then came approaches that we are currently utilising through the regulators,” Nuyoma said.
GIPF was able to retrieve the money it had invested, he said.
“The process through the Companies Act has been exhausted, liquidation, sale of assets and whatever was supposed to have been done, and that is what has led to proceeds being realised in some of those companies,” he said.
“That is where we are and we look forward to the day that this becomes a closed chapter but we have learned our lessons from it and it is just wise for us not to forget and to say nothing happened.”
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