Calls to reform Namibia's system of unclaimed benefits amid demands to strengthen beneficiary tracking.

Written by: Ayman Ragab

Calls are growing in Namibia to reform the system of unclaimed benefits, with consumer advocates and industry players agreeing on the need to improve beneficiary tracking mechanisms and ensure that funds reach their rightful owners.

This comes at a time when financial institutions are rejecting accusations that they are unfairly profiting from unclaimed funds.

The debate was renewed following a parliamentary proposal submitted last month by MP Toby Obendy, calling for a comprehensive national audit of pensions, insurance and unclaimed death benefits.

Imposing stronger obligations on institutions

Obendi called for stronger obligations on institutions to track beneficiaries, along with stricter penalties for those who fail to return funds owed to their owners.

Consumer affairs analyst Salomo Ibingi told The Namibian that the issue goes beyond mere administrative problems, noting that it reflects a structural flaw that deprives vulnerable families of funds allocated for their protection.

He added: “These benefits are deferred wages and social safety nets, not corporate assets.”

He continued: “When institutions hold onto these funds while families suffer, it undermines social justice and weakens public trust.”

Ibingi explained that complex claims procedures, costly documentation requirements, and poor access to services continue to disproportionately affect rural and low-income residents in Namibia.

He warned that reforms must ensure that unscrupulous tracking agents do not exploit families searching for their money by imposing high fees, and called for greater transparency regarding returns or accrued interest on unclaimed funds.

He said: “If institutions are able to find consumers when they are late in making payments, they should be subject to the same standard when money is owed to beneficiaries.”

The current system is old and difficult

For his part, beneficiary tracking specialist Milton Lowe said the current system is outdated and difficult for the average Namibian citizen to use.

He added: “The system relies heavily on the official gazette, which is difficult to search and not easy to use.”

He continued: “Most families simply don’t know where they can check if there is money owed to them.”

Lowe revealed that more than 11,000 records worth over $121 million of unclaimed benefits were published between 2020 and 2024, describing the database as “an important national repository of unclaimed financial benefits.”.

He noted that inconsistent records, outdated contact information, and poor quality of information continue to hinder efforts to reach beneficiaries.

He said: “The real problem is not which fund has the most unclaimed benefits, but that the system is still hidden and far too complicated for ordinary people.”

The institutions confirm their commitment to the procedures.

In contrast, financial institutions assert that beneficiaries do not lose the returns generated from their investments as long as the funds remain unclaimed.

Old Mutual Namibia said it follows a special framework for dealing with unclaimed benefits, which requires making reasonable efforts to reach beneficiaries through employers, intermediaries, relatives, tracking agents, and public announcements.

Mignon de Prez, the group’s executive director of marketing, public affairs and sustainability, stated: “The returns earned from unclaimed benefits accrue to the beneficiary and are paid out once the legitimate claimant has been identified and their identity verified.”

The company urged members to update their beneficiary nomination data and contact information to expedite the processing of future claims.

For his part, the spokesman for the Government Institutions Pension Fund, Edwin Tjeramba, said on Friday that determining the total value of unclaimed benefits in the defined benefits fund is difficult, because the value of entitlements can only be calculated after determining the reason for the termination of the member's service.

The fund explained that only 38 members currently have unclaimed benefits, mainly related to resignations or cases where the type of entitlement has not yet been determined.

nationwide awareness campaigns

Tjeramba said that outdated contact information, missing employer records, incomplete documentation, and the relocation of some members abroad remain the biggest challenges.

He added: “We organize nationwide awareness campaigns, work with employers and communities, and use newspapers, radio, social media and our website to help identify beneficiaries.”

The fund also encourages members to update beneficiary nomination forms annually, to ensure that benefits reach eligible people without unnecessary delay.