‘Accountability is zilch’ – Kandjeke on NSFAF’s books

Board pockets N$7.9 million from bleeding fund

23 May 2021 | Education

While calls for free tertiary education have climaxed, the Namibia Students Financial Assistance Fund (NSFAF) failed to provide sufficient documentation on how it spent billions of taxpayers’ monies for eight years.
The damning findings are contained in Auditor General (AG) Junias Kandjeke’s audit reports covering financial periods between 2011 and 2019, tabled in the National Assembly recently. In the two reports, for the 2011 to 2013 financial years (FYs) and 2014 to 2019 FYs, Kandjeke gave NSFAF disclaimer and adverse audit opinions respectively. “I have not been able to obtain sufficient audit evidence to provide a basis for an audit opinion,” Kandjeke crystallises his 2011-2013 disclaimer opinion.
Between 2011 and 2013, it is recorded that at least N$1.3 billion in student funding was declared irrecoverable. Still, no evidence was provided to the auditors to backbone this.
In the reports, Kandjeke posits NSFAF as an entity where accountability is zilch, as even the most basic accounting principles or books do not exist. Auditors were also not provided with a loan book, cashbooks, bank reconciliations, cash flow statements, strategic plans and minutes of meetings, nor disclosed debtors or the opening balance in income statements for those three years.
During that period, the fund operated on a cash basis.

Loan impairment
Meanwhile in the 2014-2019 report, Kandjeke says: “The accompanying financial statements do not give a true and fair view of the financial position of the NSFAF.”
Between 2014 and 2019, NSFAF paid out N$3.3 billion in student loans which were impaired by N$370 million. Loan impairment means making a provision that it would not recover N$370 million from what is disbursed over that period.
However, without a loan book in place, this could not be verified.
“Supporting documents amounting to N$408 million for operation expenditure, student funding expenditure, additions to property, plant and equipment, interest received and subsistence and travel allowances were not submitted for audit purposes,” the report adds.
In 2014, NSFAF paid N$ 1.2 million in travel subsistence and travelling, no records were provided to verify the amount nor other amounts for the following years. NSFAF also failed to disclose interest charged on student loans from 2014 to 2019.
“It was further observed that student fund payments were made without validation checks and without following the guidelines as directed in the standard operating procedures. Furthermore, student information could not be verified on the awards system,” Kandjeke said.
The auditors also found that the fund is exposed to foreign currency risk through the payment of awards for students studying abroad. “Payments amounting to N$101 million (2014-2019) relating to foreign currency transactions could not be verified due to insufficient documents provided,” Kandjeke notes.

‘No accurate, complete records’
NSFAF’s woes continue to pile up as the reports are analysed, with some issues haunting the entity since its days as a directorate in the education ministry. “These loans and commitments could not be measured reliably as there were no accurate and complete records from the ministry.”
For the board of directors tasked with fiduciary responsibilities, it appears they are well-remunerated as the fund paid N$7.9 million in board fees in just six years.
Broken down, NSFAF paid its directors N$254 279 in 2014; N$1 million (2015); N$2.9 million (2016); N$1.4 million (2017); N$933 467 (2018) and N$1.3 million in 2019.
During that period, NSFAF had no more than five board members on average. – Nampa

Similar News


ECDs at schools shut down

2 days ago - 17 June 2021 | Education

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has temporarily closed early childhood development centres (ECDs) operating within formal school premises countrywide, due...

Winter warmers for Mandume PS

4 days ago - 15 June 2021 | Education

Green Enterprise Solutions donated much needed scarves, gloves and beanies to the learners of Mandume Primary School in the capital.Namibian winters are cold and harsh,...

NUST lessons go online

1 week ago - 10 June 2021 | Education

The Namibia University of Science and Technology (NUST) said that due to an increase in Covid-19 cases, the blended teaching and learning approach which the...

Lusaka medical students face eviction

2 weeks ago - 03 June 2021 | Education

Windhoek • [email protected] group of about 25 Namibian medical students in Lusaka could be kicked to the curb next Monday after the health ministry allegedly...

Leadership training continues with big contribution

3 weeks ago - 28 May 2021 | Education

Old Mutual committed to a three-year partnership agreement valued at N$300 000 annually for three years with the Africa Leadership Institute (ALI), to train and...

Edupreneurs on the go

4 weeks ago - 21 May 2021 | Education

The Edupreneurs project that began at the end of March is in full swing.The project – launched by the Namibia Business Innovation Institute (NBII) in...

An Edulution revolution

1 month - 19 May 2021 | Education

FNB, through the FirstRand Namibia Foundation has again supported the Edulution programme with an amount of N$150 000.Corporate Social Investment Manager Revonia Kahivere, expressed her...

Só presteer leerders beter

1 month - 19 May 2021 | Education

Transformerende leierskap en die kreatiewe gebruik van ruimtes in skole kan help om leerders se prestasies te verbeter, hul emosionele welwees te bevorder, en hulle...

Unam halves faculties

1 month - 30 April 2021 | Education

University of Namibia (Unam) Vice-Chancellor Kenneth Matengu announced that the institution has merged its eight faculties into four, effective 1 June 2021.Speaking at the university’s...

CAs ready for the real world

1 month - 27 April 2021 | Education

Thirty-seven candidates successfully cleared the final hurdle to becoming fully-fledged Chartered Accountants in Namibia last week. They constituted 38% of candidates enrolled to write the...

Latest News

Are you being overcharged?

1 day - 18 June 2021 | Opinion

Windhoek • Marvin DanielsIt’s been more than a year since Namibia reported its first confirmed Covid-19 positive case in March 2020. Since then, the pandemic...

Charcoal activities unleash large-scale bush...

2 days ago - 17 June 2021 | Agriculture

Windhoek • [email protected] bush fires allegedly sparked by charcoal burning operations have razed around 35 000 hectares of grassland to the ground across seven farms...

Beatrice, Christine readying for Tokyo

2 days ago - 17 June 2021 | Sports

Henk Botha, coach of Namibia’s fastest female sprinters Beatrice Masilingi and Christine Mboma, said the athletes are hopeful of reaching their set targets before travelling...

ECDs at schools shut down

2 days ago - 17 June 2021 | Education

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has temporarily closed early childhood development centres (ECDs) operating within formal school premises countrywide, due...

More vaccination, testing centres on...

2 days ago - 17 June 2021 | Health

Khomas governor Laura McLeod-Katjirua said additional vaccination and testing centres would be identified in the region in a bid to bring services closer to the...

Watch out for scammers, NamPol...

2 days ago - 17 June 2021 | Crime

Namibian Police Force (NamPol) spokesperson, Deputy Commissioner Kauna Shikwambi, cautioned government employees to be on the alert for a scam operated by people pretending to...

Melkies tests Tesla in Germany

3 days ago - 16 June 2021 | Business

The founder and owner of LEFA Transportation Services test-drove the future of transportationwhen he cruised around in a Tesla in Germany recently.Melkies Ausiku has long...

Second Online Agriculture Series on...

3 days ago - 16 June 2021 | Agriculture

Bank Windhoek hosts its second Online Agriculture Series on Wednesday and Thursday (23 & 24 June) themed “Innovation and Trends that will shape the future...

NMRC warns against ivermectin use

3 days ago - 16 June 2021 | Health

Namibian Medicines Regulatory Council (NMRC) Registrar, Johannes Gaeseb, said the use of ivermectin in human beings has not yet been registered or granted authorisation in...

Load More