The Government Institutions Pension Fund’s management appears to have misled the board of trustees during the process of awarding a N$350 million investment mandate to the controversial Chinese-owned fund manager VG Capital.
The Issue has been privy to new information pointing to the existence of a recently authored internal memo, which is once more calling for the cancellation of the award.
The memo, The Issue has learnt, indicates that the GIPF’s board of trustees has been misled and made decisions based on information that contradicts the reality on the ground when they gave the green light in June.
The Issue understands that the memo specifically highlights discrepancies about VG Capital’s shareholding structure. The shareholding structure submitted and approved by the pension fund’s board of trustees is not the same as the company’s actual shareholding structure.
The highlighted difference is deemed material enough for the award to be canceled once more in a protracted application process dragging on for three years.
This came shortly after the GIPF told The Issue that there was nothing untoward about VG Capital’s mandate award. The fund’s spokesperson, Edwin Tjiramba, also denied any allegations of external or political pressures influencing the fund to make the award to the company linked to controversial and politically connected Chinese businesswoman Qiaoxia ‘Stina’ Wu.
Interestingly, The Issue was this week informed that the GIPF’s head of unlisted investments, the department responsible for the VG Capital case, has also resigned from the fund. It is not clear whether the resignation is linked to the ongoing VG Capital saga.
Last month, Tjiramba told The Issue, via email, that in 2022, the GIPF’s executive management recommended the approval of VG Capital to the fund’s board of trustees, who, in turn, granted a conditional approval, subject to VG Capital meeting specific conditions. Tjiramba, however, did not elaborate or name these specific conditions. “The Fund’s decision in this case was guided by its policy and the consultant’s recommendation,” he said.
He also added that to make informed decisions, the GIPF board of trustees may call for additional due diligence and request more information before awarding any mandate, as was done in VG Capital’s case.
Tjiramba’s version of events contradicts information brought to The Issue’s attention.
People briefed on the process said that both current GIPF chief executive Martin Inkumbi and his predecessor David Nuuyoma and their management teams have rejected or flagged the said application. The external consultants have also recommended a rejection of the application due to highlighted governance flaws, especially since VG Capital’s initial investment plan allegedly consisted primarily of investing in Stina Wu’s property ventures. Wu is considered a related party. To Tjiramba’s own admission last month, GIPF mandate holders are prohibited from investing in ventures owned by their shareholders and related parties.
The Issue last month reported that VG Capital was initially Kingsway Capital Partners, a company founded by Xie in March 2019. Xie was listed as the sole shareholder and beneficial owner. It was also Xie who managed to get the company accredited and licensed by the Namibia Financial Institutions Supervisory Authority (Namfisa); that Banker Chuka Okafor, who is currently the face of the company, was appointed as director during August 2019; and that during February 2021, the company changed names to VG Capital.
The company documents show that both Okafor and Xie gave Kingsway Group email addresses. Kingsway Group Holding, not to be confused with Kingsway Capital Partners, is a property development company owned by Xie, Wu and Cheng-Yuan Lee.
The GIPF has, since last month, refused to furnish The Issue with investment policy documents and evaluation documents dealing with VG Capital’s application, calling such information confidential.
PROTRACTED APPLICATION PROCESS
April 2022: The submission was made during David Nuyoma’s tenure as CEO.
September 2022: The GIPF board of trustees asks questions regarding the intricate nature of VG Capital’s shareholding structures.
March 2023: GIPF grants VG Capital a conditional award.
August 2023: David Nuyoma leaves GIPF.
September 2023: More red flags about the company’s shareholding and composition come from within GIPF; Independent external consultants recommend rejecting the mandate altogether due to governance concerns.
January 2024: Martin Inkumbi starts as GIPF CEO. In one of his first tasks as chief, Inkumbi and his executive also raised concerns about VG Capital, with some recommending an outright rejection of the application;
2024: GIPF senior officials working on helping VG Capital comply with the GIPF’s strict investment and governance requirements;
June 2025: GIPF board of trustees approves the mandate with more conditions to help the fund manager comply with GIPF’s policies and governance requirements;
August 2025: Flags are again raised within GIPF, with a call to nullify the resolution approving the granting of VG Capital’s mandate, because it was based on misleading information to the board.
