The Ministry of Justice is pushing for the Guardian Fund, currently valued at over N$2 billion, to operate as an autonomous entity.
Ministry of Justice’s Acting Chief Public Relations Officer Edmund Khoaseb said the Fund, which is now managed as a department within the Ministry, requires restructuring to improve its management and efficiency.
With a reported balance of N$132.76 million as of 23 July 2024, the Ministry has launched an Expression of Interest (EOI) for consultancy services to reform the Fund’s governance, legal framework and financial operations.
The proposal suggests transforming the Fund into an independent entity to enhance its management and service delivery.
“The Ministry has identified the need for comprehensive consultancy services. This includes a diagnostic assessment of the Fund’s legal framework, governance, compliance and financial management,” said Khoaseb.
He noted that the development of a formal policy paper is also required, which will advocate for the Fund’s autonomy and include a cost-benefit analysis, impact assessment, and international benchmarking.
He said a new bill or amendments to the existing Act will be drafted, alongside the creation of regulations to support the Fund’s reform.
The Guardian Fund is currently managed by staff under the Chief Accountant and Deputy Masters.
“It generates returns by investing at market-related rates approved annually by the Cabinet, with the financial year running from 1 April to 31 March. The Fund benefits from high interest rates and does not impose charges, tax deductions, or administrative fees,” he said.
He explained that the reported balance in the Guardian Fund’s account is specific to a particular date and varies because the funds are actively managed and invested in different assets.
“We disinvest funds as needed by beneficiaries, so while we might provide a certain amount, it doesn’t mean we always have that exact amount available. The funds are invested in various assets, which affects the balance,” said Khoaseb.
The Ministry of Justice aims to commence the reform process within the current financial year, pending the approval of the consultancy proposal.
