Local authorities fail to explain N$200m expenditure

NAMPAWINDHOEKFour local authorities failed to furnish auditor-general (AG) Junias Kandjeke with documentary evidence of how they spent at least N$213 million.For the better part of the past 10 years, Kandjeke gave authorities exemption from audit fees and related training to bolster their accounting capabilities.But this exercise has yielded few positive results, as most local authorities are perennial failures in accounting for public resources.This can be said about the Tses, Ondangwa, Okahao and Leonardville local authorities, whose reports were submitted to the National Assembly by finance minister Ipumbu Shiimi.OkahaoTopping the list is the Okahao Town Council, where Kandjeke’s team could not verify expenditure amounting to N$96.1 million between 2017 and 2018.Its books do not reflect its true financial position. The council does not have an appropriate financial reporting framework in place, “thus the completeness and existence of fixed assets could not be verified.”More so, “Differences amounting to N$17.3 million (2018) and N$14 million on the depreciation charged were found between the property, plant and equipment (PPE) note and depreciation in the operating expenditure.”In addition, for 2018, a difference of N$16.6 million was observed between the opening cost of the fixed asset register of N$62 million and the annual financial statement of N$79 million.The council does not have a work-in-progress asset register.The local authority also understated its provision for doubtful debt by N$10 million (2018) and N$3.7 million (2017).OndangwaWith regard to the Ondangwa Town Council, the council could not explain differences amounting to N$19.4 million on PPE and cash flow statement; N$18.2 million received from customers and N$17.4 million paid to suppliers.In fact, the council also misled the auditors, as “The auditors observed that the amount of N$6.9 million was not disclosed nor recognised as a grant under the statement of surplus or deficit for the year ended 2019. The council is recommended to ensure that supporting documents should be maintained and made available for audit purposes.”From its nine key performance indicators sampled during the council’s 2016-2021 strategic plan, it only achieved 11%.Chief in its ambitious plan was to develop and update the service master plan to develop sewer and water, roads and electricity.The council also planned to reduce illegal land occupants by 530, managing to reduce it by only 54.Another target was to bring four higher learning institutions to Ondangwa. None of this was achieved.The council also had plans to construct a state-of-the-art sporting facility, but upon completion of a feasibility study, “realised that it does not have the financial and technical” muscle to pull off “this big project alone”.Tses and LeonardvilleThe Tses and Leonardville village councils got disclaimer and adverse audit opinions respectively.“The auditors could not confirm the accuracy and completeness of fixed assets to the value of N$16.5 million,” Kandjeke said about Tses.

Local authorities fail to explain N$200m expenditure

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Namibian Sun 2025-05-14

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Local authorities fail to explain N$200m expenditure

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Namibian Sun 2025-05-14

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