AG not fully independent, assessment finds

A review by the Africa Peer Review Mechanism (APRM) found that the Office of the Auditor-General (AG), which is government’s audit arm, is not sufficiently autonomous because its budget is prepared and approved by treasury.

Concerns were raised that the office does not enjoy full financial independence, while the APRM noted that initiatives around the training of internal staff members are undertaken by the finance ministry, instead of the AG.

“Moreover, functions such as setting the standard for the internal audit of public institutions, monitoring compliance with standards, providing guidance and advice, identifying appropriate training and capacity-building programmes and identifying the requisite professional qualifications for internal auditors are undertaken by the ministry rather than the AG.”

However, despite not having the full authority to initiate and conduct training activities, the AG is not undermined, the APRM noted.

“The review team did not receive any evidence that in practice this arrangement undermines the independence of the AG in any substantial way,” it said.

Government was urged to educate the public sufficiently on the budgeting process.

“Educate the Namibian public, particularly in the regions, about the public financial management system and let them know that the government needs their comments to enhance the budget process to address development challenges in the country,” the APRM said.

It also suggested that the AG set the standard for internal audits at public institutions.

“Allow the office of the AG - not the ministry of finance - to set the standard for internal audits of public institutions, including their monitoring and their compliance with standards, their capacity-building and training programmes and the requisite professional qualifications needed in the auditing profession.”