The financial regulator revealed this in their 2019 annual report, noting that there is a presence of conflict of interest in some pension funds, while the composition of certain boards of trustees was not in line with fund rules. According to Namfisa, there were 134 pension funds under their watch as of 31 December 2018, with a combined value of N$158 billion.

Namfisa is mandated to regulate and supervise financial institutions as well as to ensure a safe, stable and fair financial system, which is done by on and off-site visits to financial institutions. Of the inspections done at pension funds, Namfisa said they found that certain pension funds did not have key governance policies, agreements and practices, while some had inadequate risk management functions.

“The relationships between board members and pension fund service providers compromised the board’s independence, and created a conflict of interest for board members,” read the findings included in the annual report. Other ills observed at high-governance level include boards of trustees meetings held in a manner not conforming to fund rules, as well as non-compliance with the conditions concerning the exemption to invest in the business of a participating employer.

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