Local authorities ignore audit recommendations

Local authorities’ constant failure to implement audit findings is the reason a great number of them churn out qualified audit reports on an annual basis.

This according to the Office of the Auditor-General, which has issued a number of concerning findings in the past. In 2019, it did not have sufficient information to issue an audit report for the Gobabis municipality, while in 2016/17 financial year, it issued the Okahandja and Keetmanshoop municipalities adverse audit opinions for their failure to provide statements that give a true reflection of their financial standing.

Other instances include the parliamentary standing committee on public accounts and economy’s description of the Rundu town council as the worst local authority in terms of administration for its failure to account for N$134 million.

Recommendations ignored

Asked what should be done to rein in local authorities producing qualified audit reports and whether it is time to hold them to account, Auditor-General Junias Kandjeke said the quality of audit reports will improve when local authorities work on recommendations issued to them. He, however, admitted that local authorities were often plagued by professional capacity constraints.

“There are few things involved that their reports [do] not improve. When we issue a report, we issue an opinion. Local authorities are not working on the issues identified.

“Sometimes there is a lack of capacity at local authorities; people do not have all the competences to deal with financials,” he said.

Kandjeke implored technocrats employed by local authorities to take pride in their work, saying they should be cognisant they are working with public money.

“It is for you to understand that I am managing public money. If the Auditor-General is given power, it will be good, but we don’t have to work because we are afraid. We must be happy to serve because it is the right thing,” he said.

Government oversight necessary

Former deputy minister of regional and local government and housing, Professor Gerhard Tötemeyer, said there was a need for stronger interventions at local authorities with shoddy financial statements.

According to him, strong and timely action by central government to empower regional councils to have an intervention right when they do not functionally and adequately fulfil their financial obligations was necessary.

He added that it is important to assign regional governments the right to guide to assist local authorities in their overall - but particularly financial - task performance.