No Bucks For Buddies

I AM always flabbergasted by stories of public funds’ embezzlement, but recent revelations in the media that large amount of funds from GIPF have ended up as defaulted loans have sent a cold wave of fear down my spine.

N$650 million in defaulted loans at GIPF is about 1.7% of the country’s GDP and possibly equivalent to one of our industrial contributors to the country’s GDP. In order to rationalise and realise the magnitude of the effects of the misuse of GIPF money, one must understand that this public institution was established, primarily, to offer economic security to retirees and, secondarily, to serve as a source of investment savings.From here, if you have a bit of economic common sense, the adverse effects of the abuse of GIPF money are obvious.The inability of GIPF to be able to offer good retirement benefits will create socio-economic insecurity for the majority of the people in this country.This is especially true if you take into account the fact that the Government, and its allied institutions, is the main employer and player in the country’s economy.Now, try to picture a situation in which Government is heavily indebted, semi-state institutions are collapsing financially and there are no timely and adequate payouts of insurance and pension benefits.It would all be a chaotic walk to hell characterised by a lack of adequate investment funds, a shrinking GDP per capita, high inflation rate and social uprising.This will all be true if we do not stop for a while and reflect on our approach of “business bucks for political buddies” and its crippling effects on our economy.The real approach should be “bucks to the best business bidder” whereby the person with the best business idea or sustainable business expansion idea is given priority.This thing of giving money to “buddies” who use the money, meant for investment, to buy luxury goods, should be discontinued or we will not be able to deal with the disastrous consequences of such a practice.Anon Via e-mailIn order to rationalise and realise the magnitude of the effects of the misuse of GIPF money, one must understand that this public institution was established, primarily, to offer economic security to retirees and, secondarily, to serve as a source of investment savings.From here, if you have a bit of economic common sense, the adverse effects of the abuse of GIPF money are obvious.The inability of GIPF to be able to offer good retirement benefits will create socio-economic insecurity for the majority of the people in this country.This is especially true if you take into account the fact that the Government, and its allied institutions, is the main employer and player in the country’s economy.Now, try to picture a situation in which Government is heavily indebted, semi-state institutions are collapsing financially and there are no timely and adequate payouts of insurance and pension benefits.It would all be a chaotic walk to hell characterised by a lack of adequate investment funds, a shrinking GDP per capita, high inflation rate and social uprising.This will all be true if we do not stop for a while and reflect on our approach of “business bucks for political buddies” and its crippling effects on our economy.The real approach should be “bucks to the best business bidder” whereby the person with the best business idea or sustainable business expansion idea is given priority.This thing of giving money to “buddies” who use the money, meant for investment, to buy luxury goods, should be discontinued or we will not be able to deal with the disastrous consequences of such a practice.Anon Via e-mail