Chamwe Kaira
First Capital Namibia has dismissed claims that it delayed implementing its home loan portfolio.
First Capital’s chief investment officer, Martin Mwinga, said all funds allocated by the Government Institutions Pension Fund (GIPF) were fully drawn down and disbursed on time.
“We are aware of the allegations and accusations against First Capital, and at the right and appropriate time, and if necessary, we will issue a press statement to clarify issues. However, we must clarify that First Capital has never delayed the implementation of the home loan portfolio. All funds allocated to us by GIPF were fully drawn down and disbursed on time,” Mwinga told Observer Money.
He explained that any delays were due to the exhaustion of allocated funds and the absence of timely capital injections from GIPF, which prevented further disbursements.
“Assertions to the contrary are unfounded and appear to be driven by ulterior motives rather than facts,” he said.
The First Capital Housing Fund was established in 2011 with initial investment from GIPF. It aimed to create a new way for GIPF members to access home loans to buy or develop affordable housing.
Members can borrow directly from the fund for approved housing purposes.
The fund only finances properties in proclaimed areas under municipalities, town councils, or village councils, where basic infrastructure such as roads, water, sewerage, and electricity is in place. It does not finance construction in villages.
In June, GIPF said it was ready to implement the Pension Backed Home Loan Scheme (PBHLS) initiated by the Fund.
This followed a public announcement by the minister of finance.
GIPF said it has been actively working on the scheme since 2016, when the board of trustees approved a proposal to amend GIPF’s rules.
The office of the prime minister and the Namibia Financial Institutions Supervisory Authority (Namfisa) approved the rule change in 2018, allowing the scheme to be established in 2021.
The fund is now waiting to sign a Memorandum of Agreement with the Office of the Prime Minister once the approved interest rate of Repo plus 2.5% has been gazetted.
First Capital Housing Scheme and Kuleni Financial Services have been identified as the two service providers who will administer the scheme.
They will be onboarded once all necessary agreements are signed.
Over the past two years, the fund has been informing its members across the country about the scheme’s upcoming rollout.
