The government is considering establishing the N$4 billion Guardians Fund as an autonomous entity as part of a major review of how billions of dollars held on behalf of beneficiaries are governed, managed and administered.
The Ministry of Justice and Labour Relations is currently evaluating expressions of interest (EOIs) from prospective service providers to develop a policy proposal for reforming the Fund and overhauling its legal and governance framework.
Chief Public Relations Officer Edmund //Khoaseb told The Brief that the review will examine the Fund’s governance, financial management, operational structure and institutional arrangements.
“This process forms part of the Ministry’s broader initiative to assess the most appropriate model for strengthening the governance, legal framework, financial management and operational structure of the Fund, including the possibility of establishing it as an autonomous entity,” //Khoaseb said.
The Guardians Fund, currently valued at an estimated N$4 billion, holds and administers money on behalf of beneficiaries.
It is currently administered by staff under the Chief Accountant and Deputy Masters, but the reform process could result in significant changes to how the Fund is structured and managed.
“The Ministry of Justice and Labour Relations is currently reviewing the Expressions of Interest received from prospective service providers for the policy proposal on the reform and legal framework of the Guardians Fund,” //Khoaseb said.
No decision has yet been taken on whether the Fund will ultimately be separated from its existing administrative structure.
“As the EOI evaluation process is still underway, no final recommendations have been adopted,” //Khoaseb said.
“The review will inform the development of a comprehensive policy proposal, including recommendations on the Fund’s future governance model, legislative framework and institutional arrangements.”
The reform process is expected to determine whether the existing model remains suitable for administering the growing pool of beneficiaries’ funds or whether a more independent institutional structure is required.
Government is also seeking to strengthen financial management and operational capacity while improving services for beneficiaries.
“Once the reform process is concluded, the Ministry expects to have a modernised and more efficient Guardians Fund that is supported by an appropriate legal framework, strengthened governance and enhanced operational capacity,” //Khoaseb said.
“The overarching objective is to improve service delivery, ensure the sustainable management of beneficiaries’ funds and position the Fund to respond more effectively to the needs of the public.”
