The Guardian Fund, which administers deceased estates on behalf of minor children, has lost N$6 million, after two lawyers who were entrusted with the administration of an estate converted the money to their own use. Lawyers, Robert Kaani and Mervin Kozonguizi, are said to be on the run since last month, after failing to pay out the inheritance money under their care to beneficiaries.
Ministry of Justice Public Relations Officer, Simon Idipo, told the Windhoek Observer this week that the Namibian Police is currently investigating the matter.
“The police are currently investigating the cases against Robert Kaani and Mervin Kozonguizi. These cases were made by beneficiaries in estates that they were handling.
“Information is that, they did not pay out the inheritances of the beneficiaries.
“Our office is currently busy looking into these matters. We can unfortunately not provide any further information at this stage as the matters are still under investigation,”Idipo said.
The Guardian Fund, which falls under the Administration of Estates Act (Act 66 of 1965), essentially acts as a financial guardian for some 30, 000 Namibian orphans and widows.
About 95 per cent of Guardian Fund beneficiaries are minors.
Idipo said another lawyer is also under investigation for misappropriating client funds.
He added that the Master of the High Court is currently reviewing the Administration of Estates Act 66 of 1965 to find solution to the problem.
“There is currently another Estate Practitioner under investigation. Estate Practitioners that are under investigation are not allowed by the Master of the High Court’s office to administer any new estates.
“Executors can request that all monies due to the estate be paid into the Guardian Fund from financial institutions and then be distributed to beneficiaries directly. It is unfortunate that dishonesty in general is on the increase.”
The Guardian Fund has previously recorded many cases of fraudulent activities involving estates of the deceased.
In 2015, five employees of the Ministry of Justice and two Polytechnic of Namibia (now NUST) students appeared in the Windhoek Magistrate’s Court, on charges of fraud and corruptly gaining access to money from the Guardian Fund meant for orphans.
Minister of Justice, Albert Kawana told the Windhoek Observer that his ministry is working on tightening the country’s legislation system to ensure that perpetrators are severely punished.
“Such behaviour cannot be tolerated; we are busy working on tightening our legislation system which will see the culprits being punished severely. Why take money that does not belong to you?” Kawana quizzed.
Guardian Fund soars
Meanwhile, the value of the Guardian Fund has increased from N$300 million in 1990 to over N$1,4 billion to date, Kawana announced in Parliament this week, when he motivated the ministry’s budget.
Kawana said the Master of the High Court’s office has been able to reduce the waiting time for payments from the Guardian Fund, from five working days to two days, provided that the applicant has all the required documents.
He said this was achieved following the filling of all vacant positions in the Guardian Fund during the last financial year.
The Master of the High Court is required by law to supervise the administration of estates of the deceased, liquidation of insolvent estates, registration of trusts, and the administration of the Guardian Fund.
Kawana said in an effort to render timely and efficient service to the public, the directorate of the Master of the High Court started with the development of an integrated financial and case management system during the last financial year.
“The main objective is to facilitate the speedy finalisation of deceased’s estates, and ensure daily reconciliation of the accounts of the Guardian Fund. The development of the system is almost complete and will be launched by or before July this year. The system includes an e-filing functionality, which allows the registration of trusts and estates via the internet,” the minister said.
Guardians will soon be able to view the accounts of minors under their care and to apply for quarterly allowances via the internet.
Furthermore, the directorate will have a website which will enable members of the public to view information relating to estates and trusts.
