N$3 000 old-age grant would lead to ‘closure of hospitals’

Finance minister Ipumbu Shiimi says, in theory, public hospitals would close down if the old-age pension was increased to N$3 000 within this financial year, as demanded by senior citizens who are clinging to late president Hage Geingob’s December 2023 promise. The grant currently amounts to N$1 600 monthly.

Vice-President Netumbo Nandi-Ndaitwah’s remarks in June - that she will fulfil Geingob’s wish if elected as president - has reignited hope among pensioners, but Shiimi reiterated last week that the country is currently not in a position to make that a reality, especially in this financial year.

Geingob remarked that it was his wish to increase the old-age pension to N$3 000 before he leaves office in March 2025. He died in February, and his successor Nangolo Mbumba has not publicly commented on the matter.

Shiimi said there is no contradiction between his statements on the matter - the first of which was made in April - and Nandi-Ndaitwah’s promise during a memorial lecture in honour of Geingob at Ongwediva last month.

“If elected president of the Republic of Namibia, I commit to fulfilling the wish of President Geingob to increase the old-age pension to N$3 000," she said at the event.

‘We can’t afford it’

Appearing on The Agenda on Sunday, Shiimi was asked whether he and Nandi-Ndaitwah were contradicting each other on the matter.

“I think we are all aligned,” he said. “President Geingob’s wish was for the old-age pension to increase, and we are all for that. But can we do it in one year? No, we can’t afford it – and I think that’s the same view of the vice-president.”

“She says in her presidency, when she is elected, she wishes to fulfill the aspirations of the late president. Did she say she’ll do it in one year? I didn’t hear her say that, because that’s not going to work.”

Shiimi added: “For you to increase it to N$3 000, and you include child grants, you would need something close to N$15 billion. That’s more than the current budget of the ministry of health, which is N$10.9 billion. Does it mean we must close our public hospitals to divert that money to old-age grants? I don’t think that’s what the late president wanted, and it’s not what the vice-president [Nandi-Ndaitwah] wants”.

The minister noted that Namibia’s promising oil industry could help realise the mooted increment, but over time.

“If we find additional resources one day, if oil comes, maybe then we can do it. But as things stand, we cannot do it in one year.”

‘Immoral and unethical’

Nandi-Ndaitwah’s remarks drew criticism recently, with social commentators labelling them as electioneering. Swapo member Dr Ben Mulongeni described the promise as ‘immoral and unethical’ because it is being made while leaders are fully aware that there is no money to effect it.

“Those are intentional lies. They are doing it to gain votes, and they should know that they are abusing old people by promising to increase the old-age pension,” Mulongeni, himself a pensioner, told Windhoek Observer.

“They should know that it is immoral and unethical to lie to the elders. The finance minister already said that there is no money for increments, so why would they lie like that?”