Prosecutor general admits GIPF’s N$600m lost

PROSECUTOR general Martha Imalwa declined to prosecute on 18 out of 20 dockets investigated in the N$600 million allegedly lost from the Government Institutions Pension Fund (GIPF).

Imalwa announced this at a media briefing in Windhoek yesterday, where she denied suggestions that she is protecting politicians and their cronies.

According to her, the government failed to trace the N$600 million because of lost documents, forgetful officials and lack of evidence.

The pension fund had granted loans worth N$660 million from 1994 to 2002, with the hope of making a return of N$950 million, including interest, to Namibian politically connected start-up businesses. The pension fund only managed to get N$380 million back. The rest was written off.

The police opened a case in 2009, and handed it over to Imalwa for a decision on whether to drag alleged culprits to court.

Imalwa announced yesterday that the investigation into this case focused on 20 dockets, with 195 arch files.

“These entities were beneficiaries of a loan scheme by the GIPF for purposes of stimulating the growth of their businesses. The case was opened in 2009,” she confirmed.

The prosecutor general (PG) said she only started making final decisions in 2014.

“Up to today, my office has declined to prosecute on 18 [out of 20] of the dockets for reasons varying from there being no criminal offence that was committed on one hand, to there being insufficient evidence,” she stated.

Imalwa said only one person is so far set to appear at the Oshakati Regional Court in October on fraud charges relating to hiding the assets of a company which benefited from the GIPF money.

She added that her office is yet to make a decision on another case.

“The last docket is still under consideration by my office, and a decision will be made in due course. It should be noted that this remaining docket is bulky, and it involves complex legal issues which require to be tackled with due care and diligence,” she said.

She noted that the case was prosecutor-guided.

“This entailed the movement of the dockets between my office and the investigating officers. My office was not in a position to make a final decision in any of the dockets before the finalisation of investigations,” she continued.

Documents still got lost, she said.

“Due to the period of time lapsed from the time the loans were applied for and granted, and subsequent investigations, most documents’ evidence could not be located.

The task of the investigators was made difficult because of the changes of staff personnel at the GIPF, she added.

“Those who were involved with the application and approval of loans, especially the trustees, have indicated that they have no recollection of what transpired in the absence of documents,” Imalwa said.

Some of the “relevant people” who could have explained the N$600 million transactions also died.

“In most circumstances, most decisions not to prosecute were based on the fact that there was insufficient evidence on which a prosecution could be initiated at all in the first place,” she continued.

The N$600 million from the GIPF was paid through the failed Development Capital Portfolio (DCP).

The persons who apparently benefited are senior retired politicians, prominent business people, senior legal advisers and Cabinet ministers.

The DCP gave more than N$600 million to business projects, most of which are believed to have failed because of reckless spending and trading by the companies’ owners.

Some former GIPF trustees were named as feeding from the trough of the DCP scheme, while the Namibia Financial Institutions Supervisory Authority was accused of failing to protect pensioners’ funds.

It was long suspected that this case will be be swept under the carpet.

In fact, The Namibian reported as early as 2013 that the case will not go far.

Kauandenge said Imalwa’s briefing was proof, as “she has demonstrated numerous times, that she is not fit to hold office”.

“It is disheartening to note that millions of our money went into thin air, and yet the prosecutor general has the audacity to state without shame that those who stole with impunity cannot be prosecuted because of lack of evidence?”, Kauandenge asked.

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