ACC roped into Otavi HR saga

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OTAVI – The Otavi Town Council has roped in the Anti-Corruption Commission (ACC) to delve into allegations of unprocedural recruitments, promotions and appointments of staff members to act in vacant positions.

The matter has been dragging on
since 2016.

This was revealed by Otavi mayor Isaac !Hoaeb during a recent interview with New Era which covered a myriad of issues around the town’s affairs, chief amongst them the council’s 2020/2021 financial
year report by auditor general Junias Kandjeke.

!Hoaeb said the council resolved to involve the ACC in the investigation to avoid conflict of interest, and to ensure the matter is fairly handled.

“Their investigation is done, and they have sent it to the auditor general and the prosecutor general to make a decision.
So, it is at that level. That is what we have done as a council on that issue. We have brought in the Anti-Corruption Commission to look into it, and whoever is implicated to face the [wrath] of the law,” he said.

He added that the council would scrutinise Kandjeke’s findings, and implement the recommendations he made.

“We are going to table the auditor general’s report, and we are going to then look at the recommendations. We should implement them,” the clergyman-turned-politician stated.

The AG  gave the council an adverse audit opinion, as it was found wanting for failing to install proper financial management systems.

 

 

 

 

Auditors express adverse opinions when, having obtained sufficient appropriate audit evidence, they conclude that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

One of Kandjeke’s findings was that the council had failed to implement the recommendations made by the Ministry of Urban and Rural Development after an in-depth investigation.

Back in 2016, the ministry commissioned an investigation into allegations about unprocedural recruitments, promotions and appointments of staff members to act in vacant positions. The probe also investigated alleged illegal payments of acting allowances and motor-vehicle allowances.

The team was specifically tasked to determine whether the correct procedures were being followed by the council in general, and especially the human resources’ department, in compliance with the provisions of Section 27 of the Local Authorities Act.

The investigators also dug into whether Rules 32, 33 and 36 of the Personnel Rules of the Otavi Town Council as well as the Recruitment and Selection Regulations for Local Authority Councils, during the recruitment process and appointment in an acting capacity of staff members, were complied with. There were several findings reflected in the ministerial report, with recommendations on the way forward to rectify these findings.

Supremely, the council was ordered to reverse the appointments and promotions of five staff members. According to the report, the Otavi Town Council irregularly appointed and promoted at least five staff members between 2019 and 2021. 

It included the dubious way Ernst Gaoab allegedly elevated himself to the position of acting CEO, despite only being an ordinary human resources practitioner.

As acting CEO, Gaoab effectively presided over more qualified and senior staff members, it was reported at the time. It was also stated that while in that position, he created the position of manager of human resources and administration, appointed himself to this position, and adjusted his own salary. This position was not on the council’s staff establishment, and was never approved by the line minister. “The council has not made any progress in implementing these recommendations. It is recommended that the council should ensure the implementation of the recommendations of the internal auditors,” Kandjeke said in the report.

What is more, the local authority failed to disclose Farm Klein Otavi No 799, which is valued at N$6 million, the auditors found.  Otavi’s accounting picture gets even worrisome as the auditors discovered that the council has a dumpsite and sewerage pond, but no environmental clearance certificate could be provided. Neither has the council disclosed a provision for a waste fine
which amounts to N$500 000, as required by the Environmental Management
Act.

To this, the mayor lamented that the town has struggled to secure an appropriate dumpsite, as it is enclaved by farms. “We have a dumpsite that needs to be decommissioned, [but] we are surrounded by commercial farms.  We need to buy portions of land from the surrounding farms. We are in the process of identifying land that we want,” he said.

–  emumbuu@nepc.com.na