Africa-Press – Namibia. THE chairperson of the parliamentary standing committee on public accounts and economy, Peter Kazongominja, has warned chief executive officers and finance executives against misrepresenting the financial positions of public institutions.
Speaking at the Keetmanshoop municipality’s public hearing on Monday, Kazongominja said accounting officers could face legal prosecution once the amendments to the Public Finance Management Act as well as the public audit bill for the auditor general’s office have been passed into law.
The Keetmanshoop municipality obtained an adverse opinion for the 2016/2017 financial year from auditor general Junias Kandjeke for failing to provide statements that give a true reflection of the institution’s financial standing.
“My honourable chief executive officers, there will be no more excuses for failing to account accurately for public finances as law-enforcement agents will be sitting here with us in these hearings, and once the hearing is completed you may be accompanied to a better place,” the chairperson said.
The auditor general’s report shows an understatement of revenue byN$3,5 million, while depreciation expense amounting to N$4,1 million and additions to assets amounting to N$7,4 million were wrongly disclosed.
This was due to an incorrect accounting treatment on revenue from erven sold, which resulted in the understatement of revenue. The report states that an amount of N$11,4 million relating to a power deal between Keetmanshoop municipality and the Southern Electricity Company (Selco) was not accounted for in the municipality’s books.
Kandjeke’s report indicates the municipality overstated the leave-pay provision by N$1,2 million, NamWater purchases by N$579 583, 5 % rates and taxes expenditure by N$616 450, and inventory by N$116 475.
“The Keetmanshoop municipality does not have an acceptable reporting framework, and did not prepare a cash-flow statement, which resulted in the adverse opinion by the auditor general,” the report says.
Desmond Basson, the chief executive officer of the Keetmanshoop municipality, blamed the state of affairs on understaffing and a lack of qualified staff in the finance department.
“We have now submitted a proposed staff organogram to the Ministry of Urban and Rural Development, and we are waiting to hear from them,” Basson said. He could, however, not tell the chairperson why they did not ask for support from the Office of the Auditor General.
According to the report, the municipality also overstated a Build Together loan by N$614 821, while no supporting documents were provided for any of the loans on the Build Together listing.
The municipality’s finance manager, Rene Farmer, said the overstatement was caused by differences in the Build Together beneficiary lists between the municipality and the ministry, from whom they inherited the programme.
“But the list is looking completely different now, and we can confirm the number of Build Together beneficiaries who received loans,” Farmer said. Kazongominja said public monies need to be recovered aggressively to fund new projects meant for social upliftment.
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