GIPF assures stakeholders and members that funds invested in de-registration Baobab Capital are safe
The Government Institutions Pension Fund (GIPF) recently announced that they are aware of the de-registration of the Baobab Capital, by the Namibia Financial Institutions Supervisory Authority (NAMFISA).
The Baobab Capital is referred to as fund manager, while the Baobab Growth Fund is referred to as Special Purpose Vehicle (SPV).
Edwin Tjiramba, General Manager: Marketing and Stakeholders Engagement at the Fund assured their stakeholders and members that the underlying companies and investments in which the SPV has invested on behalf of the GIPF, remain safe and sound.
“We would like to re-assure the portfolio companies under the SPV, that we are working speedily to replace the directors of the SPV who have resigned,” he added.
David Nuyoma, Chief Executive Officer at the Fund, explained that they have committed N$140 million in October 2016 to the only SPV, which as a venture capital mandate to invest in start-up companies. “Hence this SPV has the smallest committed capital and the money is committed over a 10 year period,” he informed.
Nuyoma, stated that as from July 2020, an amount of N$87 million has been drawn down by the SPV and is currently invested in various portfolio companies, which are still on track to fulfilling their mandates.
“We are cognizant of the reasons why the Fund manager and SPV licenses were terminated by NAMFISA, we discovered some irregularities through the SPV’s auditors and the Board of the SPV, commissioned an independent investigation by APEX Fund Services to identify issues flagged by the auditors,” he informed.
He further highlighted that they requested the directors of the SPV to take drastic remedial action, and most of the issues found by the investigations were subsequently attended to and were being attended to and rectified by the fund manager and SPV, until the directors of SPV resigned on 8 September 2020.
“It is on this premise that we will continue to work closely with NAMFISA to ensure that the portfolio investment held via the SPV remain safe, and we remain committed to safeguarding and growing the Fund for the benefit of its members,” he concluded.