Allexer Namundjembo
The Anti-Corruption Commission’s (ACC) director, Paulus Noa, has called for transparency in the implementation of the Welwitshia Wealth Fund (WWF) to ensure its credibility in the country.
The fund has drawn attention for its potential to drive sustainable economic growth, as it is designed to build long-term savings and provide a buffer against economic shocks.
In an interview with the Windhoek Observer on Monday, Noa said the nation should be aware of the monitoring mechanisms in place and understand how the fund will benefit both current and future generations.
“It is not the ACC that manages the fund. The ACC will only ensure that no corrupt practices are taking place. What we want to address is the elephant in the room: Corruption. Once corruption is rooted out, things will run smoothly,” he said.
The WWF is independently managed by the Bank of Namibia in collaboration with the Ministry of Finance.
It consists of two accounts: One designed to cushion the country against macroeconomic shocks and another that serves as a long-term savings vehicle for future generations.
Last week, the BoN’s governor, Johannes !Gawaxab announced that the WWF has grown to N$460 million from the initial N$270 million invested when it was launched in 2022.
The ACC hosted Kjell Kristian Dørum, chief advisor on corruption from Norway, who shared insights on how his country has managed its Government Pension Fund Global.
Dørum explained that Norway set up guidelines for the fund, which were adopted in 2004 and became operational in 2005 to help advise Norges Bank on the observation and exclusion of companies from the fund.
“An independent council of experts, consisting of five members, oversees this process, supported by a secretariat of nine people,” he said.
Dørum also discussed Norway’s “Corruption, Initial Assessment of Companies,” which focuses on gross corruption.
“This assessment considers multiple independent cases of corruption across various jurisdictions over an extended period. It examines whether top management is involved and whether large sums of money are at stake,” Dørum explained.
He went on to describe typical cases of grand corruption, which often involve large public sector contracts, especially those linked to state-owned enterprises (SOEs).
These may include construction contracts, major procurements of transport materials and defence equipment, and industrial or oil service contracts.
“Corruption may also be seen in the issuance of licenses for oil, gas, or telecommunications, as well as state financing or tax breaks,” Dørum added.
Graham Hopwood, the director of the Institute for Public Policy Research (IPPR), stressed the importance of sovereign wealth funds (SWFs) in fighting corruption, increasing transparency, and promoting economic stability.
“A well-managed SWF can foster development and help prevent corruption,” Hopwood said.
He referred to successful international models, such as Norway’s Government Pension Fund Global, as examples for the WWF.
Hopwood highlighted the need for strict financial rules and independent oversight to ensure proper management of these funds.
“Investments can be controversial. Governments should establish clear fiscal rules that dictate when and how funds can be withdrawn or deposited,” he said.
Hopwood also stressed the importance of full transparency, advocating for the disclosure of investments, fund managers, and audited financial statements.
