WALVIS BAY – The Fisheries Observer Fund has received an adverse audit opinion from Auditor General (AG) Junias Kandjeke.
The AG found that the entity’s financial statements do not fairly reflect its financial position for the 2024/2025 financial years.
In a report tabled in the National Assembly, Kandjeke said the financial statements are not a true reflection of the fund, their financial performance, and cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).
The Fisheries Observer Fund was established under section 46 of the Marine Resources Act. Its role is to collect levies from the fishing industry.
The money is then transferred to the Fisheries Observer Agency to carry out its statutory duties. Kandjeke said the adverse opinion was issued because of several material issues found during the audit.
“The adverse audit opinion is being expressed due to concerns about revenue recognition and disclosure,” Kandjeke said.
According to him, revenue from previous financial years’ landings was incorrectly recorded.
The amounts involved were N$1.6 million in 2025 and N$1.5 million in 2024, which were invoiced and recognised as revenue in the current financial years.
Kandjeke also found discrepancies in levy income.
According to the report, there was “a difference of N$3.8 million (2025) and N$2.3 million (2024) between the recalculated amount and the amount as per the fund’s records.”
“The recalculated figures were based on statistics from the Namibia Statistics Agency. The figures included species such as horse mackerel, hake, monk, crab, tuna and rock lobster,” Kandjeke stated.
Kandjeke also highlighted irregularities with disclosure requirements, saying the fund did not disclose the information required in terms of revenue from contracts with customers.
He added that auditors could also not determine whether certain estimated revenues were correctly valued.
“These included N$4.2 million in 2024 and N$4.6 million in 2025, as well as related receivables recorded in the financial statements,” Kandjeke said.
The report also further found that transactions worth N$2 million related to March 2024 landings were invoiced in the 2025 financial year even though they had already been accrued in 2024.
“This resulted in double accounting for revenue and overstating revenue in the 2025 financial year,” Kandjeke said.
Financial statements also show that the fund recorded levy revenue of N$52 459 667 in 2024 and N$54 433 002 in 2025.
He added that transfers to the Fisheries Observer Agency were higher than the revenue generated in 2024.
According to him, the fund transferred N$60 100 000 in that year and N$50 635 000 in 2025.
“This resulted in deficits of N$7.6 million in 2024 and N$2.3 million in 2025,” he said.
Despite the adverse opinion, Kandjeke said there were no key audit matters to report.
“Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial statements of the current period. I have nothing to report in this regard,” he said.
– edeklerk@nepc.com.na