PRIME Minister, Nahas Angula  has slammed the GIPF board of trustees for forming an offshoot company within the pension fund without Government’s knowledge.

Angula who is also chairperson of the State Owned Enterprise Governance Council (SOEGC ) described the  formation of the controversial Kuleni Fund Administrators PTY Ltd as a non-event claiming that the GIPF board of trustees do not have the mandate to form a company without Government’s blessings.
“There is no company called Kuleni within GIPF. Whatever is happening there the Government is not aware and has not been formally informed. We have never heard of the formation of parallel structures within GIPF,” said Prime Minister Angula.
The Prime Minister’s sentiments comes barely a week after Informanté broke the story on the  formation of Kuleni  spearheaded by the current GIPF board and chaired by Helmut Ruppel.
Angula also said any changes effected at GIPF should be conducted through the laid down procedures that also include the participation of Parliament since the company is a public entity.
According to the Premier the board of trustees are better positioned to answer  questions about the origins of Kuleni because SOEGC does not recognise the existence of the offshoot company.
Angula dismissed any chances of Kuleni increasing the pension premiums for civil service because the company does not exist as far as the Government is concerned and cannot take over the administration of GIPF.
He said any changes in the GIPF structures should be suctioned by his office or Government as they are the ones responsible for bankrolling the operations of all state owned companies.
“Government is responsible for funding these companies in times of need and also takes care of their day to day financial dealings and this makes government a major stake holder which makes all the decisions,” said Angula.
However, GIPF, CEO Primus Hango made a U-turn from his last week’s  statements on the existence of Kuleni claiming that the company has been operational for more than 10 years now in a letter dated 1 February 2010 sent to Informanté.
This contradicts his comment last week when he said, “It is still an idea under consideration and we will contact you when its done.”
“Please take note that Kuleni Fund Administrators (Reg.99/504) has been in existence for more than 10 years having already two funds under administration, namely GIPF Employees Pension Fund and the Members of Parliament and other Office Bearers’ Pension Fund.”
In the letter, Hango also defends the existence of Kuleni saying it’s neither sinister nor illegal.
“Its establishment complies with the Rules of the GIPF that state that “the trustees shall appoint a pension fund administrator” as a service provider to administer the GIPF. Currently, GIPF is self administered, a function that Trustees normally outsource to pension fund administrators,” Hango said.