namibre financial reports too incomplete to audit
The only reinsurance company in Namibia, Namibia National Reinsurance Corporation’s (NamibRe) audit report for the 2012/13 financial year remains outstanding. Managerial incompetence is suggested as the reason for the parastatal’s inability to meet requirements.
Auditing firm Ernst and Young has qualified the reinsurer’s financials, meaning insufficient documentation made it impossible to complete the audit. Ernst and Young started the process in April last year and should have finalised the report for approval by the NamibRe board by September 2012.
According to correspondence between NamibRe board chairperson, Maria Dax, and managing director Anna Nakale-Kawana, the auditor believed there was a “significant breakdown” of controls at the company due to a lack of “diligence or lack of skills by management”.
“The disclaimer could, and probably will, influence the excellent credit rating of NamibRe which is AA nationally and A regionally. The rating is aligned to Namibia’s sovereign credit rating,” comments Dax.