The Namibia Financial Institutions Supervisory Authority (Namfisa) has initiated a forensic inspection of the Namibia Building Workers Pension Fund over financial reporting and governance concerns.
Namfisa’s 2026 annual report states that the inspection was initiated because of “ongoing financial reporting and governance concerns”, but does not specify when it began or detail individual allegations against the fund.
The inspection comes against a wider backdrop of governance and compliance weaknesses identified across the retirement fund industry.
Namfisa’s off-site monitoring found problems including non-compliance with legislation, fund rules that were not aligned with requirements, weak board oversight and inadequate governance structures.
The regulator also flagged late or inaccurate reporting, missing service-level agreements, weak oversight of trustees and service providers, difficulties tracing fund members, and gaps in risk management and the implementation of actuarial recommendations.
The pension fund was established in 1990 through an agreement between the Construction Industries Federation and the Metal and Allied Namibian Workers Union to represent construction workers.
According to the report, the findings form part of a broader supervisory crackdown that has also exposed weaknesses among institutions providing loans, insurance and investment services.
Namfisa classified 62 of the 1 193 regulated financial institutions recorded in 2025 under stage 5 of its Ladder of Supervisory Intervention.
Stage 5 is the highest-risk category under the framework and describes an entity as not viable or facing imminent insolvency.
Microlenders accounted for 53 of the 62 entities, or 85.5% of the total.
Namfisa attributes the classifications largely to persistent operational and compliance failures, including failure to submit returns, unpaid levies and failure to address inspection findings.
Six pension funds were also classified under stage 5 out of 67 pension funds.
The regulator has simultaneously intensified enforcement of anti-money laundering and counter-terrorist financing requirements among accountable institutions, including asset managers, microlenders, life insurers and unlisted investment managers.
During the reporting period, Namfisa conducted five on-site and 54 off-site inspections across these institutions.
It subsequently issued 16 formal compliance directives and 28 remedial closure letters.
The directives required non-compliant institutions to take corrective action within specified timelines.
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