Lahja Nashuuta

A total of 44 local authorities could not account for public resources entrusted to them after failing to comply with basic accounting principles as required by the law.

This is after 21 local authorities, seven municipalities and 16 village councils failed to submit their 2022-2023 financial reports as per Sections 87 (1) and (2) of the Local Authorities Act. This information is contained in a report recently compiled by Auditor General (AG) Junias Kandjeke.

These authorities will now be subpoenaed, and face legal consequences for their omission.

The Act obligates all municipalities, regional and local authorities as well as village councils to submit financial reports at the end of each financial year.

“The accounting officer of a local authority council shall, within three months or such longer period as the auditor general may

approve after the end of a financial year of the local authority council, make out financial statements in such form as may be determined by the auditor general in respect of that financial year, and submit such financial statements to the auditor general,” Kandjeke stressed.

By law, the financial statements must include a balance-sheet showing the assets and liabilities of the local authority at the end of that financial year, as well as a statement of income and expenditure of the local authority for that financial year.

However, Kandjeke’s  special report on the non-submission of financial statements
shows that most regional and local
authorities as well as village councils did not comply with the stipulations of the Act, and
did not submit financial statements for 2022-2023.

The auditor-general, and the Public Accounts Committee, would subpoena the non-compliant councils.

The report said some of the municipalities such as Gobabis, Grootfontein and Keetmanshoop have been submitting financial statements since 2020, while municipalities such as Okahandja, Omaruru and Tsumeb could not beat this year’s deadline.

Kandjeke said except for the City of Windhoek and Otjiwarongo, almost all other towns did not meet the submission deadline.

Among these are the Arandis Town Council, Aranos Town Council, Helao Nafidi Town Council, Karasburg Town Council, Karibib Town Council, Katima Mulilo Town Council, Khorixas Town Council, Luderitz Town Council, Okakarara Town Council and the Omuthiya Town Council.

Other authorities such as the Oniipa Town Council, Outapi Town Council, Opuwo Town Council, Oshakati Town Council and Oshikuku Town Council had requested and were granted an extension until 30 November 2023.

Some village councils have not been submitting statements since 2013. Others, including Bukalo, have never submitted financial statements to the AG’s office, while the Otjinene Village Council has been requesting extensions since the 2018-2019 financial years, which have been turned down.

Kandjeke expressed concern over the non-submission of financial statements, saying it hampers the execution of his office’s mandate, and causes unnecessary delays.

“I express my concern about this issue to the National Assembly. Another concern is the increase in the number of requests for extensions to submit financial statements. The non-compliance is escalating, and the auditor general will only allow one extension per communicated request,” he said.

Challenges 

Furthermore, New Era learnt that various local authorities depend on consultants to draw up their financial statements due to a lack of capacity, which some councillors confirmed to be “an expensive exercise”.

Back in 2014, the Office of the Auditor General obtained Treasury approval to exempt all local authorities from paying audit fees on the condition that they utilise the savings towards capacity-building for them to draw up their own financial statements by 31 March 2024.

“It is an ongoing concern, of which little or no progress was made during the past financial years,” Kandjeke lamented.

 “As indicated in my previous reports, it is once again recommended that the line ministry should develop a training programme to capacitate staff at local authorities in the drafting of financial statements”, he added.

-lnashuuta@gmail.com