GIPF warns public against buying illegal shares

The Government Institutions Pension Fund (GIPF) has issued a public warning against the attempted illegal sale of shares by a private equity and fund management company.

Myrtle Growth Capital manages the Namibia Mid-Cap Fund (NMCF) to which the GIPF has committed N$450 million.

GIPF spokesperson Edwin Tjiramba yesterday said the pension fund has taken legal action against Myrtle Growth Capital and the case is currently pending at the High Court.

“The NMCF and the GIPF notify the public that litigation is currently underway against Myrtle Growth Capital to prevent it from unlawfully selling or disposing of shares held by the NMCF on behalf of the GIPF in unlisted investments (portfolio companies),” he said.

The issue started when the Namibia Financial Institutions Supervisory Authority (Namfisa) deregistered Myrtle Growth Capital as an unlisted investment manager in August 2023.

“Because of its deregistration by Namfisa, Myrtle Growth Capital is prohibited by law from managing or administering the affairs of the NMCF,” Tjiramba said.

The company is, therefore, not permitted to sell shares in Greencrisp Farming, Agrigro Namibia, Amazing Kids Private School and Academy, Chimezi Farming Enterprises, Namibia Cables, Swanib Cables and the Trans-Kalahari Group.

“Myrtle Growth Capital has no authority whatsoever to privately deal with, offer for sale, or dispose of any shares held by the NMCF in any companies,” Tjiramba said.

HISTORY

Myrtle’s licence was revoked after it was accused of diverting N$7.3 million in pension funds meant to build a school.

This started in 2020 when the GIPF pumped N$10 million into Amazing Kids Private School, which wanted to build a campus in northern Namibia.

The GIPF made the investment through the NMCF, managed by Myrtle Growth Capital, previously known as Musa Capital Namibia.

As a result, Myrtle Growth Capital ran the affairs of the school.

However, the construction of the northern branch was never finalised.

Instead, Myrtle Growth Capital transferred N$7.3 million into a bank account belonging to FFO Securities Namibia, while about N$2.8 million was used for salaries and school operations.