A storm is brewing in Karibib as the town’s chief executive officer Lesley Goraseb finds himself in hot water over the state of the council’s affairs that was unearthed in an internal audit.
The internal audit conducted by the Ministry of Urban and Rural Development and released in August reveals that council was facing a slew of critical financial and administrative issues, including violations of local authority laws, unauthorised expenditure, and a poor work relationship between councillors and administrators.
These challenges have had serious implications for the municipality and its residents, according to the audit.
The report further states that one of the most concerning issues is the violation of local authority laws when the Karibib community’s collective account was separated from the normal operations of the council without the required
approval.
“This separation has led to financial losses, exposed the council to potential fraud, and raised concerns about the manipulation of financial data.
Poor supervision and intentional actions are believed to be at the root of this issue,” said Martin Ngubai, deputy director of internal audit at the line ministry.
The audit also indicated that there is an unauthorised transfer of over N$10 million done between the council’s accounts without proper approvals, leading to unauthorised expenditures and possible fraudulent payments.
“This issue is attributed to poor supervision, negligence, and inadequate internal controls. To prevent further unauthorised transfers, the council must obtain proper resolutions for fund transfers and hold both the CEO and finance manager accountable for their actions,” said Ngubai.
According to him, some creditors were also paid without confirmation letters which resulted in financial losses and unauthorised expenditures.
“To address this issue, the council must require bank confirmation letters for all payments, obtain tax invoices from creditors, and ensure that payments align with the delivery of goods and services,” he said.
The audit also states that Goraseb – since 2020 – went on unauthorised trips pocketing over N$19 000 in subsistence allowance, while he also took out more salary advance loans than any other employee.
These loans were also not approved.
“The mismanagement of salary advances, including non-compliance with personnel rules, has exposed the council to potential theft, financial losses, and exploitation. Poor supervision, staff imitating the CEO’s actions, and negligence have contributed to this problem,” said Ngubai.
To address the issues, Ngubai recommend that the Goraseb must be held accountable.
Taking necessary steps
Karibib mayor Davey van Wyk yesterday told New Era that based on the report and its recommendations, they had to make a critical decision as to how they would deal with Goraseb.
“We already deliberated in a special meeting and reaffirmed our decision yesterday. We are currently waiting on the line ministry to endorse it, hence, we cannot say what our final decision is,” he said.
However New Era understands that council decided to suspend Goraseb until a final decision can be made about his future at the Karibib Town Council.
Goraseb’s response
Speaking to New Era yesterday, Goraseb said there is a council resolution that the CEO must attend meetings that are necessary.
“I communicated these meetings to the chairperson but approval was refused,” said Goraseb.
According to the audit report, the meetings not approved were an information meeting on the suspension of CROs and CEO that was held by the then deputy minister of the line ministry, Nathalia Goagoses and a budget meeting with the regional council as well as an electricity tariff meeting with ErongoRED.
“Even the meeting with regards to the audit report which I was supposed to attend on Tuesday, they refused. They also denied me the minutes of the meeting, but I saw it late yesterday afternoon with the recommendation that I must be suspended,” said Goraseb.
He indicated that he responded to all the issues raised in the audit report, but they were never noted in the final audit report.
“The relationship is completely broken between me and the council that it hampers service delivery, but everything I do I have done within the confinements of the law and the Local Authority Act. There is no money missing from council although we must improve some aspects in terms of administration,” said Goraseb.
edeklerk@nepc.com.na
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