The Trade Union Congress of Namibia has expressed concern over the Pension-Backed Home Loan Scheme by the Government Institutions Pension Fund (GIPF), which will be administered through two mediators. 

The appointment of these two companies, according to TUCNA Secretary General Mahongora Kavihuha, will deprive workers of their full entitlement to benefits. 

Last month, GIPF announced the readiness of the Pension Backed Home Loan Scheme.

They identified Capital Housing Scheme and Kuleni Financial Services as the two agents administering the pension-backed home loan.

Kavihuha, therefore, says the choice of having these two companies administer will exacerbate the concentration of wealth in a few hands and maximise profits at the expense of the workers, who are supposed to benefit directly.

"You come to someone and say that, 'Okay, you are going to use your money as collateral to build your house. But I will only give you money if you work with this person, not anyone else.' To me, that is very, very hypocritical and completely something that we cannot condone."

Moving forward, the union says they will engage the Prime Minister and hold several meetings with the workers to reject the approach and work towards an approach and system that will benefit them directly through involvement.

"The notions of power to the workers must be revived so that we can start taking control of our investments and control of our resources, and we direct them how to go about it."

However, in a media release, GIPF says the Fund now awaits the signing of a Memorandum of Agreement between itself and the Office of the Prime Minister as soon as the approved interest rate of plus 2.5% has been gazetted.

Confirming the appointment of the two agents that will administer the scheme, GIPF says the two service providers will only be onboard once all the necessary agreements have been signed.