Diamond board on ‘autopilot’ for three years
AUDITOR general Junias Kandjeke has found that the Diamond Board of Namibia has not had an active board of directors for three consecutive years. This has placed the board’s corporate survival in jeopardy, Kandjeke said in the annual report for the financial year 2019.
Concluded in July last year, the report was tabled in the National Assembly for scrutiny two weeks ago.
“The diamond board does not have an active board of directors in place. As a result, the board has not executed their responsibilities with regard to the overall management of the board’s affairs, including the strategy, organisation, financial structure of the board and oversight of risk management,” Kandjeke said.
He added: “This observation is being reported for the past three consecutive years,” also noting that the board has unapproved accounting policies. However, during the period in question, the board paid sitting fees to at least two individuals and subsistence allowance to five others.
For example, it paid a certain Shihaleni Ndjaba and Buks Bock N$1 500 each. For subsistence allowance (S&T), Martha Haindongo received N$19 239 while Miina Gahutu got N$6 096. Monika Maletsky received a payment of N$4 586 in S&T while Helena Ithamba pocketed N$26 494.
The highest amount, N$65 995, was paid to Thomas Alweendo. The legal status of the board has also been questioned by the AG.
“The diamond board currently operates as a division within the Ministry of Mines and Energy as opposed to Section 21 of the Companies Act, 2004 (No. 28 of 2004) or [an] autonomous entity.
The diamond commissioner’s role is also not clearly defined in [the] Diamond Board Act,” Kandjeke added. Detailed questions sent to mines minister Tom Alweendo last week have not been responded to.
The Diamond Board of Namibia was established with a view toward providing control measures in respect of the possession, purchase and sale, processing, import and export of diamonds, among others.
The board has “to advise the minister on any matter relating to the diamond industry and the control and protection of diamond resources in Namibia.”
With its powers and functions clearly defined, the board’s dormancy or its continued operation under the auspices of the mines ministry remains unknown. “The Diamond Board of Namibia does not have an approved accounting policy despite the fact that it implemented or approved the first-time adoption of the International Public Sector Accounting Standard (IPSAS) framework during the current financial period 31 December 2019,” Kandjeke said.
Figures availed by Kandjeke further indicate the diamond board generated N$6 million in 2018 and N$5.5 million in 2019 from levies.
Furthermore, its total funds and liabilities stood at N$12.7 million and N$10.1 million in 2018 and 2019, respectively.