IPPR warns govt against repeating past sovereign wealth fund mistakes

Graham Hopwood, executive director of the Institute for Public Policy and Research (IPPR), has called on the government to implement proper governance measures for the newly established Welwitschia Sovereign Wealth Fund (SVF).Hopwood made the comments during a recent Anti-Corruption Commission (ACC) engagement held, where experts from Norway shared insights into how the SVF is managed in that country, as well as how the Nowergian SVF, on which the Welwitschia SVF is benchmarked, is managed. “Governments should set rules about how the fund is invested. Rules should also restrict domestic expenditure via the SVF. This helps limit spending outside the budget but also possible corrupt case use of funds,” Hopwood said about the fund’s future administration. Hopwood cited the Saudi Arabian SVF’s recent investment in English Premier League (EPL) club, Newcastle United, and said it drew attention to concerns that it was done to launder money. “Investments can be controversial. In recent years, we have heard about the Saudi Arabian SVF after it bought Newcastle United in 2021 - something that raised controversy around sports money washing. Money can be stolen from the SVF,” Hopwood said. Hopwood also cited the 1 Malaysia Development Berhad (which means limited) – was nothing more than a Malaysian state fund, set up in 2009 to promote development through foreign investment and partnerships, and from which $4 to $5 billion has been stolen which led to the arrest of then prime minister, Najib Razak. The fund has since been at the heart of one of the biggest corruption scandals in the world, The Guardian has previously reported. To avoid Namibia falling into a similar situation, Hopwood said it was essential to set up clear fiscal rules. “Governments should also set clear fiscal rules that dictates when and how funds can be withdrawn as well as deposited. Finally, governments can implement several oversight strategies to ensure checks and balances on accountability in the management of SVF are adhered to,” he said. Hopwood also recommended that the SVF be open to scrutiny to the Office of the Auditor General as well as parliament. The Welwitschia SVF has grown to N$453 million since its inception in 2022.The fund received seed capital of N$260 million in 2022 and has nearly doubled over the last three years.

IPPR warns govt against repeating past sovereign wealth fund mistakes

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Republikein 2025-04-02

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IPPR warns govt against repeating past sovereign wealth fund mistakes

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