PAAB probes APP auditors
The country’s regulator for auditors has instituted a probe into an unregistered audit firm that compiled the recently released financial report of the All People’s Party’s (APP).
The Electoral Act compels all political parties that receive public funds, by virtue of being in parliament, to make their finances public annually.
According to section 158 (4)C of the Electoral Act of 2014, political parties must have their books audited by an auditor registered in line with the Public Accountants & Auditors Act (PAA) Act.
APP on Tuesday published its 2015-2020 abridged financial statements. The financials were signed off by NPS Business Consultancy.
Public Accountants & Auditors Board (PAAB) head Zaa Nashandi on Wednesday confirmed the probe.
“NPS Business Consultancy is not registered with PAAB and may not hold themselves out to be auditors in Namibia. An unregistered person/firm that holds themselves out to the public as an external auditor is in contravention of Section 22 of the PAA Act, no. 51 of 1951 (as amended),” he said.
He added: “The PAAB does not have mandate over political parties. However, the PAAB has a duty to investigate and sanction any unregistered person/firm holding themselves out to be an auditor whilst not duly registered. An external audit conducted by an unregistered person is null and void, and fails to meet the requirements for a statutory audit.”
Approached for comment, APP secretary-general Vincent Kanyetu yesterday confirmed being aware of PAAB’s concerns, saying that “they [NPS Business Consultancy] are responding to it”.
When contacted for comment, NPS Business Consultancy CC owner, Paul Lyambezi confirmed that his audit firm is not registered with PAAB.
Lyambezi explained that he was only tasked to do the auditing because he is an accountant, however the certification was to be done by an accredited auditing firm.
He further said “APP publicised the report because they wanted to do it faster and were under pressure”.
“The time it went to went to publication it was not certified by the public audit firm but it’s on its way to be certified. Due to the pressure, (the APP) decided to go ahead and publicise it before it is certified, but the certification report itself is coming,” he said.
Lyambezi said he is registered as an accountant with the Southern African Institute for Business Accountants.
Law abiding
The APP has been submitting audited financial reports to the ECN, but it was also required of them to publicise it, hence the publication of financials dating back to 2015.
“We normally submitted our audited financial reports but we were told by the ECN that we are lacking in one aspect and that is to publish them. That’s why we published our financial statements to comply with what is required of us by the law,” Kanyetu said.
Reality
Kanyetu said the financial report depicts how opposition parties are struggling to run their affairs, saying that the majority of the revenue derives from the government based on the number of seats they have in parliament.
As per the audited reports, APP’s main sources of revenue are the grants from government, membership fees and loans.
Kanyetu said these loans are secured from members with money and not from financial institutions.
“This is what most opposition parties go through. They don’t have money. We survive on the little that we get from government and membership fees. Those loans you see there are not from the banks because of the many things they ask, such as collateral, which we cannot provide. This is the reality for most political parties,” he explained.
No donor funds
Kanyetu also said that since the formation of the APP, the party has not benefited from donations.
“If you look at our financials there is nothing from donors, neither locally nor internationally. We survive by the day with what we have,” Kanyetu said.
The audited reports also indicate that APP did not conduct any fundraising activities, something Kanyetu said there is a valid reason for.
“People are afraid to be associated with opposition political parties. If, for example, we organise a braai, people will not come and buy because they are afraid of what might be said of them,” he said.
Apart from the negative balance, which includes the current assets of N$24 at the end of 2020, APP’s current liabilities stood at N$380 847.
[email protected]
The Electoral Act compels all political parties that receive public funds, by virtue of being in parliament, to make their finances public annually.
According to section 158 (4)C of the Electoral Act of 2014, political parties must have their books audited by an auditor registered in line with the Public Accountants & Auditors Act (PAA) Act.
APP on Tuesday published its 2015-2020 abridged financial statements. The financials were signed off by NPS Business Consultancy.
Public Accountants & Auditors Board (PAAB) head Zaa Nashandi on Wednesday confirmed the probe.
“NPS Business Consultancy is not registered with PAAB and may not hold themselves out to be auditors in Namibia. An unregistered person/firm that holds themselves out to the public as an external auditor is in contravention of Section 22 of the PAA Act, no. 51 of 1951 (as amended),” he said.
He added: “The PAAB does not have mandate over political parties. However, the PAAB has a duty to investigate and sanction any unregistered person/firm holding themselves out to be an auditor whilst not duly registered. An external audit conducted by an unregistered person is null and void, and fails to meet the requirements for a statutory audit.”
Approached for comment, APP secretary-general Vincent Kanyetu yesterday confirmed being aware of PAAB’s concerns, saying that “they [NPS Business Consultancy] are responding to it”.
When contacted for comment, NPS Business Consultancy CC owner, Paul Lyambezi confirmed that his audit firm is not registered with PAAB.
Lyambezi explained that he was only tasked to do the auditing because he is an accountant, however the certification was to be done by an accredited auditing firm.
He further said “APP publicised the report because they wanted to do it faster and were under pressure”.
“The time it went to went to publication it was not certified by the public audit firm but it’s on its way to be certified. Due to the pressure, (the APP) decided to go ahead and publicise it before it is certified, but the certification report itself is coming,” he said.
Lyambezi said he is registered as an accountant with the Southern African Institute for Business Accountants.
Law abiding
The APP has been submitting audited financial reports to the ECN, but it was also required of them to publicise it, hence the publication of financials dating back to 2015.
“We normally submitted our audited financial reports but we were told by the ECN that we are lacking in one aspect and that is to publish them. That’s why we published our financial statements to comply with what is required of us by the law,” Kanyetu said.
Reality
Kanyetu said the financial report depicts how opposition parties are struggling to run their affairs, saying that the majority of the revenue derives from the government based on the number of seats they have in parliament.
As per the audited reports, APP’s main sources of revenue are the grants from government, membership fees and loans.
Kanyetu said these loans are secured from members with money and not from financial institutions.
“This is what most opposition parties go through. They don’t have money. We survive on the little that we get from government and membership fees. Those loans you see there are not from the banks because of the many things they ask, such as collateral, which we cannot provide. This is the reality for most political parties,” he explained.
No donor funds
Kanyetu also said that since the formation of the APP, the party has not benefited from donations.
“If you look at our financials there is nothing from donors, neither locally nor internationally. We survive by the day with what we have,” Kanyetu said.
The audited reports also indicate that APP did not conduct any fundraising activities, something Kanyetu said there is a valid reason for.
“People are afraid to be associated with opposition political parties. If, for example, we organise a braai, people will not come and buy because they are afraid of what might be said of them,” he said.
Apart from the negative balance, which includes the current assets of N$24 at the end of 2020, APP’s current liabilities stood at N$380 847.
[email protected]
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