THE Government Institutions Pension Fund (GIPF) is facing an uncertain future after it emerged that the board of trustees had clandestinely formed a pension fund administrator that would take over the role of GIPF.

The administrators - Kuleni Fund Administrators PTY Ltd, envisaged to replace the GIPF administration allegedly comes after two years of board manoeuvrings and has prompted fears of job insecurity amongst GIPF workers and of misuse of resources.
Although the GIPF board has promised job security, the workers fear that they will have no legal ground to stand on because Kuleni as a private business outfit will enforce their will “as they deem fit,” said a source within GIPF  who asked not to be named.
The source said workers were insecure because of the secretive way the Board was handling the issue.
Although it was not revealed then, the source said the existence of Kuleni was the major reason for the strike that rocked the institution last year.
The source said Kuleni, is currently being  led by Namibia Public Workers Union (NAPWU) Secretary General Peter Nevonga,  as sole director constituting a “direct conflict of interests.”
It is not clear who owns Kuleni Fund Administrators, except that as of August last year it was under the directorship of Leah Namuhuja-Namoloh, Maru Tjihumino, Risto Kapenda, Primus Hango and Gordon Elliot.
NAPWU has drawn the ire of GIPF workers for turning a blind eye on the shrewd dealings of the GIPF Board of Trustees despite having their Secretary General, Nevonga on the Board.
Documents obtained by Informanté show that Ernst and Young audited Kuleni’s books for the 2006/2007 and 2007/2008 financial years.
It also emerged during the meeting that Ernst and Young were ‘struggling to finalise the audit because the share certificate of Kuleni Fund Administrators could not be traced’.
The board members who attended a meeting held in August 2009 resolved that each member will be paid N$4,000 while the board chairperson will get N$5,000 from the beleaguered Fund’s coffers each time they meet.
The meeting also discussed the legal relationship between Kuleni and GIPF pertaining to administration services, use of office premises, movable assets, information technology systems and personnel.
Kuleni management presented a business plan to the Board which sought clarity on whether the workers had been fully informed about the fund administrators’ functions.
“The Board wanted clarity on issues pertaining to Kuleni which had been highlighted during the strike. On this the (GIPF) CEO (Hango) informed the meeting that a meeting has been held with the employees where they were assured that there will be no job losses,” the documents say.
The Board, the documents say further, appreciated the information and urged management to ensure that the transformation takes place, it would be imperative that staff members are constantly kept abreast of the development and that there is a buy-in from the employees regarding this transformation process.
So far, the meeting was told that Kuleni has crafted two products - Kuleni Preservation Fund (KPF) and Kuleni Umbrella Dependants Trust.
Contacted for comment, GIPF Chief Executive officer, Primus Hango said “it is still an idea under consideration and we will contact you when its done”.
GIPF Board chairperson, Helmut Ruppel, also confirmed plans to establish a pension fund administration company but denied any knowledge of the meeting.
“I know that there are plans to form Kuleni as a pension administrator but I cannot comment on the financial implications on GIPF,” Ruppel said.
On his part, Nevonga refused to comment on the issue saying he was in the midst of an important meeting and could not attend to the questions.
“I am busy at the moment and I cannot talk to you. You are disturbing the meeting,” said Nevonga before cutting off the line.