Municipality pays N$712 000 into wrong account

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Municipality pays N$712 000 into wrong account

WALVIS BAY – Employees of the Walvis Bay municipality expressed concern about the competence of their senior management, saying it is playing Russian roulette with the ratepayers’ money. 

This comes after a severance payment of the former manager of community affairs, Agostinho Victor, was erroneously paid out.

The incorrect payment was confirmed yesterday by the municipality of Walvis Bay’s acting CEO, John Esterhuizen as well as the legal representative of Agosthino to New Era. The money was paid into the former chief executive officer Muronga Haingura’s Standard Bank account instead of being accredited to Victor’s account.

Victor retired last month and was entitled to the payment in terms of the Labour Act.

His lawyer, Richard Metcalfe yesterday told New Era that an amount of N$712 846 was instead paid into Haingura’s account on 2 June. 

“Haingura immediately notified the finance division and was advised that it was an error as the funds should have been for Victor,” Metcalfe said yesterday.

In a letter addressed to the acting CEO, the two former employees suggest that corrective… not punitive disciplinary process should be taken against the finance department.

“It is assumed that the requisite disciplinary process will be instituted against the general manager of finance for what could have been a major financial loss, had the funds been paid to another party. We will at the very least retain this lamentable negligence for use at any relevant disciplinary enquiry. No further action is contemplated beyond bringing this utter negligence to your attention and the attention of the councillors,” the letter reads.

Several employees echoed the same sentiments, highlighting that if such an error had occurred with cross-border payments, the council would have incurred additional expenses to recover the lost funds, using taxpayers’ money.

“This further emphasises the importance of ensuring the competence and accuracy of the senior management in handling financial matters so that it doesn’t become a costly exercise,” one of the employees said yesterday.

Questions sent to the municipality yesterday were not answered yet and it is also not clear whether the responsible employees will face disciplinary action.

The same department last year faced public scrutiny after it erroneously overpaid a security company with N$1.2 million.

As a result, Walvis Bay councillors opted to launch an investigation into the overpayment and take necessary steps against employees for alleged maladministration. 

The security company, Omle Security Services, at that time, sought legal advice after some payments were withheld when the overpayment was detected in February last year. Chairperson of the management committee Richard Hoaeb, during that month’s council meeting, explained the overpayment happened for about six consecutive months before it was detected. 

Councillors at that time were of the opinion that cases of overpayment and negligence are happening too often in the municipality.