Pension funds wrongfully deduct N$5,5m from clients

Pension funds have wrongfully deducted N$5,5 million from clients from January to March this year.

According to the Namibia Financial Institutions Supervisory Authority (Namfisa), consumers in the non-banking financial sector were wrongfully charged a total of N$5,8 million during this time.

Pension funds made up the biggest chunk, followed by short-term insurance at N$359 960 long-term insurance with N$13 750, and microlending with N$11 657.

The money has, however, been paid back to consumers.

The non-banking financial sector is made up of microlenders, insurance companies, venture capitalists and currency exchanges.

“Namfisa is committed to resolving complaints efficiently and identifying underlying issues. Our mission is to regulate and supervise financial institutions to foster a stable and fair non-banking financial sector while promoting consumer protection,” says Namfisa chief executive Kenneth Matomola.

He says the recovery comes from the complaint resolution efforts of the institution and shows a significant increase from the previous quarter.

“From January to March 2024, Namfisa’s complaints resolution interventions resulted in over N$5,8 million being recovered and disbursed to complainants, a remarkable increase from the N$2,4 million recovered in the previous quarter (October to December 2023),” he says.

Matomola says the authority’s mission is to regulate and supervise financial institutions and intermediaries to foster a stable and fair non-banking financial sector, while promoting consumer protection.

“These figures highlight Namfisa’s effectiveness in holding financial entities accountable. We are committed to protecting consumers and guiding industry players towards compliance and best practices,” he says.

– email: shania@namibian.com.naTwitter: @ShaniaLazarus