IPPR warns the government against the repetition of errors of the sovereign fund of sovereign wealth – Allgemeine Zeitung

Graham Hopwood, Executive Director of the Institute of Public Policies and Research (IPPR), has asked the Government to implement adequate government measures for the newly established Welwitschia Sovereign Wealth Fund (SVF).

Hopwood made the comments during a recent commitment of the Anti -Corruption Commission (ACC) held, where Norway experts shared ideas about how the SVF is managed in that country, as well as how the Nowergian SVF is handled, in which the SVF Welwitschia is compared.

“Governments must establish rules on how the fund is invested. The rules must also restrict domestic spending through the SVF. This helps to limit spending outside the budget, but also the possible use of corrupt funds in cases, ”said Hopwood on the future administration of the fund.

Hopwood cited the recent SVF Investment Club in the SVF of Saudi Arabia, Newcastle United, and said he caught attention to the concerns that it was made to wash the money.

“Investments can be controversial. In recent years, we have heard about the SVF of Saudi Arabia after Newcastle United bought in 2021, something that increased the controversy over sports money laundering. The money can be stolen from the SVF, ”said Hopwood.

Hopwood also cited the 1 Malaysia Development Berhad (which means limited), was nothing more than a State Malaysia Fund, established in 2009 to promote development through foreign investment and associations, and of which $ 4 to $ 5 billion have been stolen that led to the arrest of the then Prime Minister, Najib Razak.

Since then, the background has been in the heart of one of the largest corruption scandals in the world, he said before.

To prevent Namibia from falling in a similar situation, Hopwood said it was essential to establish clear tax rules.

“Governments must also establish clear tax rules that dictate when and how funds can be withdrawn and deposited. Finally, governments can implement several supervision strategies to guarantee controls and balances of responsibility in the SVF administration, ”he said.

Hopwood also recommended that the SVF be open to the scrutiny to the Office of the General Auditor and Parliament.

The SVF Welwitschia has grown to N $ 453 million since its inception in 2022.

The fund received seed capital of N $ 260 million in 2022 and has almost doubled in the last three years.