NSFAF cash flow in red
The finance ministry will release an additional N$300 million to the Namibia Students Finance Assistance Fund today, but has warned that the fund is by far exceeding its budget.
The N$2.7 billion requested by the Namibia Students Finance Assistance Fund (NSFAF) since April by far outstrips the fund's annual budget of N$962 million, a situation that has resulted in severe cash-flow problems.
The ministry of finance yesterday stated that by today, when the ministry releases an additional N$300 million to NSFAF, the fund will have received close to 100% of its total current budget, after it already received a total of N$647 million to date this financial year.
The ministry warned that “over-commitment of the budget is unlawful. Over-commitment of the budget is, indeed, not synonymous with budget shortfall.”
The ministry added while the government's ability to pay is aligned to the flow of revenue, “the national budget is fully funded, and the government retains its ability to pay and will honour its budgeted obligations.”
The ministry did, however, urge all government offices to ensure that they spend within their budget and avoid over-commitment.
NSFAF on Wednesday noted that a major factor in its cash-flow problem was caused by 5 000 more students than had been budgeted for.
This, it said, has brought the total budget requirement for 2017 to N$1.3 billion, which “obviously leaves a great shortfall and poses a great challenge.”
The finance ministry also pointed out that the NSFAF's public statement issued on Wednesday, in which the fund's monthly cash requests and receipts were highlighted, was ambiguous.
The ministry pointed out that the statement shared with the public indicated that the total funds requested were N$2.7 billion since April, and the ministry found this “categorisations and juxtaposition of information misleading to the public, because the requested amounts significantly exceed the budget allocation to NSFAF for the financial year, which amounts to N$962,482.183.”
The NSFAF, under pressure on Wednesday after more than 150 students and beneficiaries protested a delay in benefit payments, said it was facing a “unique challenge” that had never been experienced before.
Hilya Nghiwete, CEO of NSFAF, said that to date the total number of payments processed for 23 230 students cost N$905 million, of which “only N$501 million is actually paid through the bank.”
She said although “invoices of N$905 million are processed in this regard, payments to the value of N$404 million are yet to be paid as and when funds are made available. NSFAF has not received these funds and can therefore not pass them on to the beneficiaries.”
She said that the total number of student beneficiaries this year is 36 806.
The cash-flow graph published stated that in April, NSFAF requested N$346 million, but only received N$70 million from the ministry of higher education, training and innovation.
In May, a request of N$103 million was met by a payment of N$78 million.
This month, NSFAF requested N$629 million, and yesterday the finance ministry transferred N$43 million.
The ministry of finance pledged that the government would strengthen the budgetary allocation for NSFAF during the 2017 mid-year budget review, to be tabled in November.
A number of questions sent to NSFAF were not answered before going to print yesterday.
JANA-MARI SMITH
The ministry of finance yesterday stated that by today, when the ministry releases an additional N$300 million to NSFAF, the fund will have received close to 100% of its total current budget, after it already received a total of N$647 million to date this financial year.
The ministry warned that “over-commitment of the budget is unlawful. Over-commitment of the budget is, indeed, not synonymous with budget shortfall.”
The ministry added while the government's ability to pay is aligned to the flow of revenue, “the national budget is fully funded, and the government retains its ability to pay and will honour its budgeted obligations.”
The ministry did, however, urge all government offices to ensure that they spend within their budget and avoid over-commitment.
NSFAF on Wednesday noted that a major factor in its cash-flow problem was caused by 5 000 more students than had been budgeted for.
This, it said, has brought the total budget requirement for 2017 to N$1.3 billion, which “obviously leaves a great shortfall and poses a great challenge.”
The finance ministry also pointed out that the NSFAF's public statement issued on Wednesday, in which the fund's monthly cash requests and receipts were highlighted, was ambiguous.
The ministry pointed out that the statement shared with the public indicated that the total funds requested were N$2.7 billion since April, and the ministry found this “categorisations and juxtaposition of information misleading to the public, because the requested amounts significantly exceed the budget allocation to NSFAF for the financial year, which amounts to N$962,482.183.”
The NSFAF, under pressure on Wednesday after more than 150 students and beneficiaries protested a delay in benefit payments, said it was facing a “unique challenge” that had never been experienced before.
Hilya Nghiwete, CEO of NSFAF, said that to date the total number of payments processed for 23 230 students cost N$905 million, of which “only N$501 million is actually paid through the bank.”
She said although “invoices of N$905 million are processed in this regard, payments to the value of N$404 million are yet to be paid as and when funds are made available. NSFAF has not received these funds and can therefore not pass them on to the beneficiaries.”
She said that the total number of student beneficiaries this year is 36 806.
The cash-flow graph published stated that in April, NSFAF requested N$346 million, but only received N$70 million from the ministry of higher education, training and innovation.
In May, a request of N$103 million was met by a payment of N$78 million.
This month, NSFAF requested N$629 million, and yesterday the finance ministry transferred N$43 million.
The ministry of finance pledged that the government would strengthen the budgetary allocation for NSFAF during the 2017 mid-year budget review, to be tabled in November.
A number of questions sent to NSFAF were not answered before going to print yesterday.
JANA-MARI SMITH
Comments
Namibian Sun
No comments have been left on this article