Human rights boss calls for PG’s removal

WINDHOEK: The Government Institutions’ Pension Fund (GIPF) should invest N.dollars 1 billion with the Development Bank of Namibia (DBN), from where public servants can borrow money to acquire houses, the Defence Minister has suggested.

Nahas Angula made the proposal in Parliament on Tuesday during discussions on the Pension Funds’ Amendment Bill.

The Bill is aimed at authorising pension funds to grant loans and provide guarantees for members to acquire homes in communal areas.

He said since the GIPF is now worth N.dollars 70 billion, the institution should get funds from its actuarial surplus money and invest it with DBN.

“In actual fact, GIPF contributes something like 80 per cent to the country’s Gross Domestic Product (GDP). Commercial banks will, because there is no collateral, charge any interest and frustrate the programme (of acquiring houses),” Angula said.

The minister noted that the amendment to the Bill is for the sake of rural development, thus if GIPF could invest N.dollars 1 billion to provide loans to public servants, it has the potential to bring about development.

Angula said that this would change the face of rural housing, as civil servants will now be able to put up permanent dwellings, which will also improve sanitation.

The GIPF, he added, can negotiate with DBN so that monies borrowed are affordable to repay to avoid putting civil servants in debt.

GIPF can negotiate the interest, the Defence Minister said.