Okahandja’s accounting woes pile up
WINDHOEK – 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.
These findings are recorded in the municipality’s 2018/19 financial year report tabled in the National Assembly (NA) by finance minister Ipumbu Shiimi last week.
The laws regulating local authorities state that key decisions such as the sale of land, spending of significant amounts, the execution of capital projects or the writing off of debts can only be made through council resolutions approved by the line minister. The opposite is true for Okahandja, where both the council and minister were circumvented.
During the financial year under review, Auditor General (AG) Junias Kandjeke states that the municipality unilaterally wrote off N$52.7 million of unclaimed deposits.
The auditors could also not obtain council approval for the increase in the 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 the manual correction of the bank balance by N$10.6 million,” Kandjeke said.
Okahandja’s also 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,” the AG continued.
“There is the improper accounting treatment of cheques written off at yearend 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”, the report states.
Kandj eke gave the municipality a disclaimer audit opinion, the worse there could be. “The financial statements do not present fairly, in all material respects, the financial position of the Municipality of Okahandja,” he added.
Contacted on Sunday, acting Okahandja chief executive officer George Mwazi declined to comment on the findings, saying he was still new in the portfolio.
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 former CEO Martha Mutilifa. The council accused Mutilifa of gross insubordination, while she constantly debunked such accusations, maintaining the council was interfering in her administrative work.
In 2019, former urban and rural development 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.