CHIEF Executive Officer of the Government Institutions Pension Fund (GIPF), David Nuyoma, has dismissed statements by Prosecutor General, Martha Imalwa, that there is no evidence to bring to book a cabal of businesses responsible for unaccounted funds amounting to N$661.2 million.
In a media briefing at GIPF today, 9 Nuyoma stated that the pension fund laid a criminal case with the Namibian police in 2009 for proper investigations to establish whether or not there was any criminal offense such as theft, fraud or reckless trading under the companies act, has been committed.
Nuyoma explained that when investigations were done and it came to light that a string of companies were not paying back the capital investments or loans disbursed to them, inquiries were completed to see if its negligence, fraud or market related causes which culminated in the loss of these funds.
He further stated that at this point the pension fund decided to take the investigation to an independent entity, which is also the police.
“They came here with broad sweeping powers to investigate whether any breaches were made at decision making level. It is incumbent upon those investigations to see if there was anything amiss and follow it through with the PG,” Nuyoma explained.
Queried about the PG’s claims that there was no evidence, Nuyoma said: “I have not seen the PG in many years, so I cannot guess what she means. From our side, we provided everything that was required by the police, as well as a forensic team, which came from overseas in 2013/14. The fact that the PG did not prosecute is in her professional judgement and how the docket was formulated.”
The CEO further corrected reports which stated that the entire amount of N$661.2 dispersed into the Development Capital Fund (DCP) was lost, stating that only 12 of the 21 investments incurred losses to the tune of N$386 million.
Nuyoma further stated that to date, 12 of the portfolio investments have been disposed of or written off, except three. The three include Etosha Fisheries (home of famous canned fish brands like Lucky Star and Glynrick), FNB Namibia Holdings, now called FirstRand Namibia, and Bank Windhoek Holdings, now called Capricorn Investment Group.
Although 12 of the 21 investments incurred losses to the tune of N$386,572,857, a total N$1.1 billion was collected in the form of dividends, interest and capital repayments as at 31 March 2019.
Therefore, a total of profits realised from the DCP as at 31 March 2019 stood at N$458 066 226.
Nuyoma further explained that the fund still has three active portfolio companies from the DCP investments with the total unrealised gain as at 31 March 2019 standing at N$988 million.
“GIPF exited from the 12 companies that failed to perform in a responsible way under the circumstances that prevailed at the time. This was done by exercising the security rights in mortgage bonds, notarial bonds, converting loans into shares, requiring the shareholders to hand over their shares to GIPF without compensation, selling of shares and loans to other buyers,” Nuyoma said.
A further six companies were liquidated either at the instance of GIPF or other creditors or through voluntary liquidations. These actions enabled GIPF to recover some funds, albeit very minimal, Nuyoma said.
The debts, which could not be recovered, were written off as per usual financial practices.
“Writing off debt is normal for any doubtful investment; there are accounting standards that have to be applied. It doesn’t mean that because these lost funds were written off the money is lost. However, most of these companies do not exist anymore and our lawyers have already done what they could by analysing the way these agreements were drawn up and what we could recover legally,” Nuyoma said.