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GIPF is not bailing out governmentImage may be NSFW.
Clik here to view. CATHERINE SASMAN
David Nuyoma, CEO of the Government Institutions Pension Fund (GIPF), has taken issue with by assertions made by investigative journalist John Grobler, who claimed that the fund was bailing out the government with at least N$8 billion.
Grobler posted on Facebook that the Swapo-led government was “plundering” the GIPF “to keep the ship afloat because the local banks will no longer buy treasury bonds”.
He said so far at least N$8 billion had been used to plug holes allegedly left by former minister of finance Saara Kuugongelwa-Amadhila.
No so, said Nuyoma.
Nuyoma said the GIPF had entered into an asset-swap agreement with the Bank of Namibia (BoN) and not a purchase of bonds as alluded to by Grobler.
This meant that the GIPF received Namibian dollar-denominated bonds issued by BoN in exchange for South African bond assets in a book-entry transaction. The total value of the transactions amounted to N$8 billion.
“GIPF was in no way worse off through this transaction. The transaction was done with the BoN and not with the government. We are pleased and proud that this arrangement had a positive impact on the Namibian foreign currency standing,” Nuyoma stressed.
The GIPF explained that this transaction helped the BoN to reflect better reserves for the country.
The general manager for investments at the GIPF, Conville Britz, said pension funds needed to invest their funds to be able to preserve capital and earn returns to meet their obligations.
“Government bonds are among those assets that pension funds invest in. We have invested in Namibian government bonds in the past and will continue to do so in future. Investments like those are not excluded from a regulatory permit point of view. Money has thus not been released to ‘plug’ holes in government through this transaction,” said Britz.
He said stakeholders could be assured that these investment decisions were not taken lightly or in an imprudent manner.
“GIPF remains committed to guard and grow our member benefits,” Britz said.
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GIPF is not bailing out governmentImage may be NSFW.Clik here to view.
CATHERINE SASMANDavid Nuyoma, CEO of the Government Institutions Pension Fund (GIPF), has taken issue with by assertions made by investigative journalist John Grobler, who claimed that the fund was bailing out the government with at least N$8 billion.
Grobler posted on Facebook that the Swapo-led government was “plundering” the GIPF “to keep the ship afloat because the local banks will no longer buy treasury bonds”.
He said so far at least N$8 billion had been used to plug holes allegedly left by former minister of finance Saara Kuugongelwa-Amadhila.
No so, said Nuyoma.
Nuyoma said the GIPF had entered into an asset-swap agreement with the Bank of Namibia (BoN) and not a purchase of bonds as alluded to by Grobler.
This meant that the GIPF received Namibian dollar-denominated bonds issued by BoN in exchange for South African bond assets in a book-entry transaction. The total value of the transactions amounted to N$8 billion.
“GIPF was in no way worse off through this transaction. The transaction was done with the BoN and not with the government. We are pleased and proud that this arrangement had a positive impact on the Namibian foreign currency standing,” Nuyoma stressed.
The GIPF explained that this transaction helped the BoN to reflect better reserves for the country.
The general manager for investments at the GIPF, Conville Britz, said pension funds needed to invest their funds to be able to preserve capital and earn returns to meet their obligations.
“Government bonds are among those assets that pension funds invest in. We have invested in Namibian government bonds in the past and will continue to do so in future. Investments like those are not excluded from a regulatory permit point of view. Money has thus not been released to ‘plug’ holes in government through this transaction,” said Britz.
He said stakeholders could be assured that these investment decisions were not taken lightly or in an imprudent manner.
“GIPF remains committed to guard and grow our member benefits,” Britz said.
