VNPF confident about its decision to invest in Wilco Holdings Limited

The Vanuatu National Provident Fund has responded to the latest upsurge in concerns about the Fund’s decision last year to invest in a private business entity, Wilco Holdings Limited.

In a statement issued Friday, the Chairman of the VNPF Board of Trustees, Simil Johnson, reiterated that the mission of the Fund to its members is to identify and administer social security benefits that improve the economic and social welfare of members and to invest in assets that generate real return to the Fund.

Earlier this week a group of perceived members of the general public issued a statement claiming the Wilco Company was under financial problems with one of its managers and this nearly resulted in Wilco nearly going bankrupt. It says during that time VNPF appointed a Wilco shareholder and owner to its board of directors.

The statement says “the Wilco shareholder was still on the VNPF board when the decision to purchase the Wilco building came out and after the purchase the public was made aware of this fact which now clearly indicates a conflict of interest in the decision to spend over 1 billion from hard earned savings from the people of Vanuatu at the VNPF.”

It says “this is a serious matter and the members of VNPF are demanding VNPF management and board to call a press conference and clear its position on the matter.”

However, VNPF Chairman Johnson said the Fund would not have decided to purchase this property should there been no assessed real return to members.

“We are confident in our decision and we remain committed to see even much stronger portfolio and investments that will provide basis for a sustainable pension scheme. This is necessary for a secure retirement for our members,” the statement by the Board chairman says.

“This is why the Board of Trustees has in its last meeting (April 19, 2014), approved the Fund’s 5-year Strategic Plan for 2014 – 2018,” the statement continue.

It says the objectives of the strategies are to strengthen the governance, introduce new social security benefits to its members, and improve communication with members and the public at large. The chairman vowed there would be more updates on these initiatives very soon.

“These new scheme will bring about great developments in such areas as health services and insurance, educational assistance and affordable housing solutions that will start to rollout from this year 2014 onwards and more involvement in PPP (Private Public Partnerships) initiatives,” the statement pledges.

The statement from perceived members of the public had also questioned the Board’s decision to invest in South Santo Belmol cattle project.

“VNPF members also want to know about the South Santo Belmol Plantation which VNPF spent 380 million from member’s savings to purchase. This is 800 hectares of land which one third is swamp land and now since the government has stopped sub divisions, how will VNPF get 380 million Vatu back for the members? These are questions VNPF management and board must answer?,” the statement asks.

It also points out that there is “concern among business house in town that a Chinese company wants to purchase the Wilco Company.”

“This concern also raises the issue that if the Wilco business here in Vanuatu is bought and relocated to elsewhere, how will VNPF get back the over 1 billion used from member’s savings to purchase the two Wilco buildings in Port Vila and Luganville?.”

The statement repeated that “VNPF members say 1 billion is a lot of money and are demanding the VNPF board and management to call a press conference and clear its position.”

In clear reference to this statement, the Chairman of the VNPF Board of Trustees, Simil Johnson said VNPF was concerned that there were recent trends which indicated that active politicians were “once again trying to use VNPF as a political campaign.”

“This is detrimental to VNPF New Team and its Board. Hence we request the cooperation of everybody to rather join us, be part of this team that has full commitment to build a growing, well managed, accountable Provident Fund with values of transparency, dedication to our members, innovation and creative in finding solutions to problems of our members among others,” Johnson concluded his statement.

Daily Post understands from the General Manager of the Fund, Santos Vatoko, that his management team met with a leader of the Yumi Toktok Stret social media group that is behind much of these public concerns, Julian Ligo, Friday morning and they have agreed to work together help VNPF answer the concerns raised by their members.