Okahandja municipality fails to balance the books

Accounting in a shocking state

14 June 2021 | Government

Okahandja local authority councillors were bypassed when the municipality presided over transactions amounting to at least N$90 million in 2019, a direct contravention of the Local Authorities Act.
The findings are recorded in the municipality’s 2018/19 financial year report tabled in the National Assembly (NA) for scrutiny by finance minister Ipumbu Shiimi this week.
The laws regulating local authorities state that key decisions such as the sale of land, spending of significant amounts, execution of capital projects or the writing off of debts can only be made through council resolutions approved by the line minister.
The contrary is true for Okahandja, where both the council and minister were circumvented.
During the FY under review, the municipality unilaterally wrote off N$52.7 million of unclaimed deposits. The auditors could also not obtain council approval for the increase in provision for bad debts of N$20.9 million.
Additionally, the municipality wrote off a N$3.7 million NaTIS claim.
“The auditors could also not obtain proof of council approval for manual correction of bank balance by N$10.6 million,” Kandjeke states.

Accounting woes
Okahandja’s accounting woes keep piling up. It understated its provision for doubtful debts of 120 days or older in the debtors’ age analysis by N$23.9 million.
“The auditors could not obtain a schedule of value-added tax (VAT) that substantiates the receivable balance of N$18 million recognised in the books of accounts receivables; therefore, no reasonable assurance regarding the existence, accuracy and valuation of the VAT receivable balance could be obtained,” Kandjeke says.
Further, it is recorded: “There is the improper accounting treatment of cheques written off at year-end but presented for payment amounting to N$4.3 million that were accounted for as bona fide payments instead of creditors as at year-end.”
He gave the municipality a disclaimer audit opinion, the worst there is.
“The financial statements do not present fairly, in all material respects, the financial position of the Municipality of Okahandja,” he said.
Contacted on Sunday, acting Okahandja chief executive George Mwazi declined to comment on the findings, saying he was new in the portfolio.

Political squabbles
For the better part between 2015 and 2019, the beleaguered municipality was a hotbed for political squabbles between its management and the Swapo-dominated council.
So bad were things that the then Johannes ‘Congo’ Hindjou-led council attempted, but failed, to chuck out then CEO Martha Mutilifa.
The council accused Mutilifa of gross insubordination while Mutilifa constantly debunked such accusations, maintaining the council was interfering in her administrative work.
In 2019, former urban minister Peya Mushelenga stepped in and dissolved the council in a bid to resolve the impasse which robbed the Garden Town’s residents of much-need services. – Nampa

Similar News


National census postponed

2 weeks ago - 15 July 2021 | Government

The Namibia Statistics Agency (NSA) announced that the 2021 Population and Housing Census that was scheduled for August this year, has been postponed to August...

Decongestion hoped for at home affairs

2 weeks ago - 13 July 2021 | Government

Windhoek • [email protected] home affairs ministry has asked members of the public that only one person visits their offices when registering a death and that...

Khomas in need of more classrooms

1 month - 01 July 2021 | Government

Learner enrolment in the Khomas region increased from 94 999 in 2020 to 97 176 in 2021, and if the trend continues, enrolment for 2022...

National documents: Only apply if urgent

1 month - 07 June 2021 | Government

The Ministry of Home Affairs has urged the public to delay application for national documents that are non-urgent to avoid visiting its office as the...

‘Stop with the tenders’ – Amupanda

2 months ago - 23 May 2021 | Government

City of Windhoek (CoW) Mayor, Job Amupanda said the City spends N$20 million on private security company tenders a year – a practice that should...

Gobabis muni in the red

3 months ago - 02 May 2021 | Government

Gobabis mayor Elvire Theron said the town currently owes NamPower N$13 million in arrears.Theron, in a media statement, stated that the arrears inherited by the...

‘Bring a buddy to parly!’

4 months ago - 17 March 2021 | Government

The office of the Speaker and the Namibia Nature Foundation launched the ‘Bring a buddy to parly’ initiative earlier this week, which is aimed at...

On death and taxes

4 months ago - 14 March 2021 | Government

Despite the dire economic situation caused by Covid-19, government plans to honour financial obligations towards creditors, suppliers and employees, as well as statutory obligations including...

Local procurement pushed

4 months ago - 14 March 2021 | Government

Government has in the past three years pumped in N$1 billion into the public procurement process to promote locally registered companies and hopes to continue...

Doing it for themselves

4 months ago - 09 March 2021 | Government

Gobabis mayor Elvire Theron said that her municipality is reverting to internal debt collection measures and will no longer be seeking external services to handle...

Latest News

ICU bed occupancy reduced by...

9 hours ago | Health

Health minister Kalumbi Shangula said the hospital bed occupancy rate, especially in intensive care units, has significantly improved in most of the regions, following a...

Why appointing a proxy and...

11 hours ago | Opinion

Windhoek • Taswald JulyMost of us have probably faced death and thought about our own mortality more often, and however daunting the prospect may be,...

Ways to renovate without losing...

11 hours ago | Life Style

For many, the history of a home is what makes it appealing.However, as charming as antique archways and brass finishes might be, rusty pipes and...

Lead by example

11 hours ago | Opinion

Windhoek • Ester KaliDuring these trying times, it is important to approach every situation with as much grace, kindness, faith and empathy as possible. Today,...

Book your cancer screening now

11 hours ago | Health

The Cancer Association of Namibia hosts the next Women's Health Community Clinic in Windhoek on Thursday (5 August 2021), when screenings are carried out for...

The perfect San storm

12 hours ago | Social Issues

The year 2021 has not brought any respite to Namibia from the tragedy and hardship that befell the nation through the Covid-19 pandemic. In fact,...

Segura spog met nuwe winkel

13 hours ago | Business

Windhoek • [email protected] Emporium het begin as ’n aanlynwinkel, maar spog nou met ’n splinternuwe instap winkel inKlein Windhoek.Volgens eienaar Marilie van Schalkwyk, wil sy...

Omaheke remains cattle capital

1 day - 01 August 2021 | Agriculture

Omaheke governor Pijoo Nganate said the region continues to be the champion in beef production, with emphasis on breeds that capitalise on maximum output of...

Supreme Court to review 50-year...

3 days ago - 30 July 2021 | Justice

Windhoek • [email protected] man serving a 50-year prison sentence for the panga murders of a Russian couple 13-years ago has been granted leave to appeal...

Load More