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

 

Munisipale bateregister uiteindelik in plek

2 days ago - 25 November 2021 | Government

Windhoek • [email protected] Windhoek munisipaliteit sê sy bateregister is voltooi ten spyte van kommer wat deur die kantoor van die ouditeur-generaal (OG) geopper is dat...

Capital fails audit

5 days ago - 22 November 2021 | Government

Windhoek • [email protected] Auditor-General, Junias Kandjeke, says there is significant uncertainty about Windhoek Municipality's solvency.In his report for the financial years ended 30 June 2019...

Focus on food

2 weeks ago - 07 November 2021 | Government

The health ministry concluded a two-day consultation workshop to develop smart nutrition commitments in preparation for the Tokyo Nutrition for Growth Summit 2021 on Friday.The...

New ID cards: What to expect

1 month - 17 October 2021 | Government

Home affairs minister Albert Kawana said the new national identification cards (IDs) that government is set to introduce, can be used as travel documents with...

Stadsraad se uitvoerende hoof: Wie het uitgeval

1 month - 12 October 2021 | Government

Windhoek • [email protected] 61 mense uit verskeie sektore, hoofsaaklik semistaatsinstellings se bestuurders en senior staatsamptenare, het aansoek gedoen vir die pos van die hoofstad se...

Namibia off the red list

1 month - 10 October 2021 | Government

Good news for the tourism industry, is that the UK has removed Namibia from the so-called “red list”, which will ease travel.The travel easing is...

New IDs on the cards

1 month - 04 October 2021 | Government

Information minister Peya Mushelenga announced that Cabinet has approved the introduction and launch of new identity documents (ID) cards that will be issued to citizens,...

City announces shortlisted candidates

2 months ago - 16 September 2021 | Government

The City of Windhoek said that progress is being made to recruit and fill the positions of chief executive officer, as well as those of...

NIPDB opts for expensive rent over free space

2 months ago - 01 September 2021 | Government

The Namibia Investment Promotion and Development Board (NIPDB) has rejected free office space extended to it by the trade ministry, citing lack of parking space...

Some people are more important than others: Geingob

3 months ago - 03 August 2021 | Government

President Hage Geingob has justified why politicians - including himself - have breached Covid-19 burial restrictions, saying they are not equal to ordinary citizens.Geingob was...

Latest News

Osona area hit by veld...

2 days ago - 25 November 2021 | Disasters

Although the veld fires in the area surrounding Windhoek have calmed down recently, several major fires broke out countrywide yesterday. This image shows a fire...

Rolspelers vergader oor straatkinders

2 days ago - 25 November 2021 | Social Issues

Die ministerie in die presidensie verantwoordelik vir geslagsgelykheid, armoede-uitwissing en maatskaplike welsyn is die gasheer van ’n driedaagse slypskool om ’n oplossing te probeer vind...

Big plans for Step Up...

2 days ago - 25 November 2021 | Society

Windhoek • [email protected] charity project that was established to care for disadvantaged women and children in rural areas in the Hardap region during the Covid...

Understanding urea supplementation

2 days ago - 25 November 2021 | Agriculture

Windhoek • Erastus NgarukaThe use or role of urea is not well understood, apart from it being labelled as a risk to livestock.Urea is a...

Science, technology and innovation policy...

2 days ago - 25 November 2021 | Science

The revised National science, technology and innovation policy was launched earlier in October, to integrate STI in all socio-economic sectors.The policy aims to reach the...

Vat jou woef vir ‘n...

3 days ago - 25 November 2021 | Art and Entertainment

Yolanda NelIn ‘n poging om broodnodige fondse vir die veeartspraktyk op Okahandja in te samel, word daar Saterdag ‘n heerlike pret stap aangebied.Volgens organiseerder Martie...

Rebirth planned for tourism sector

3 days ago - 24 November 2021 | Tourism

Swakopmund • [email protected] 18 months after the corona crisis brought the tourism industry to its knees, government is in the process of developing a Tourism...

OM support for communities

3 days ago - 24 November 2021 | Social Issues

In the last two quarters of 2021, Old Mutual supported various community project initiatives to the tune of N$63 000. This included support of the...

Don’t kick the cat!

3 days ago - 24 November 2021 | Opinion

Windhoek • Dr John SteytlerNamibia is in an unenviable position as a developing country, its economy is very fragile and it is trying to weather...

Load More