Edward Mumbuu
Trouble continues to brew in Omaheke, with both the regional council and the Gobabis Municipality seemingly unable to account for public resources entrusted to them.
The two entities – the Omaheke Regional Council and the Gobabis Municipality – were slapped with adverse and disclaimer audit opinions, respectively, by Auditor General (AG) Junias Kandjeke, their latest financial reports reveal.
For years now, the AG has had run-ins in Omaheke due to a barrage of irregularities, either at the municipality or the regional council.
“I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion,” Kandjeke said about the Gobabis Municipality in its 2019 audit report.
The auditors were also unable to obtain evidence to verify the land owned by the municipality.
During the previous financial year, adjustments of N$5.1 million were done to the land and appropriation fund balances to reflect the value of land previously excluded from the accounting records.
This, however, was not reflected in opening balances brought forward from the 2017/18 financial year.
“The auditors were not provided with a new valuation of all land owned by the municipality and the accompanying valuation methodology and assumptions,” Kandjeke found.
The AG also questioned a joint venture (JV) agreement entered into by the municipality and Shamrock Investments, a company owned by Collin Venaani, the younger brother of Popular Democratic Movement leader McHenry Venaani.
In the said agreement, the municipality was to make land available to Shamrock Investments, which would in turn source funds for the construction of a municipal bungalow complex.
The two entities would have equal shareholding through a special purpose vehicle.
“The auditors were not provided with information on the subsequent implementation of the JV and shareholders’ agreement as well as the resolutions, as resolutions enable them to develop the necessary audit procedures to assess the financial implications of the joint venture agreement,” the auditors stated.
Additionally, the auditors found internal deficiency mismanagement of capital projects by the municipality.
In its latest report, tabled by the finance minister in the National Assembly for scrutiny recently, Kandjeke premised his opinion on the Omaheke Regional Council on eight ambiguities.
Chiefly, the auditors found that there was no acceptable financial reporting framework applicable to public interest entities.
They also found an unexplained difference of N$1 million in value-added tax receivable, while a double recognition of revenue (rates and charges) amounting to N$352 3111 was recorded.
Meanwhile, the council’s inventory was overstated by N$696 3335.
More so, the council did not submit supporting documents for the 5% rates and levies from local authorities to the tune of N$673 956, and sub-charges fees from Cenored of N$584 728.
The troubled council likewise failed to disclose bank accounts to the value of N$21 912.
Kandjeke’s men furthermore flagged the continuous usage of a consultant, for which the council pays N$160 000 monthly.
The non-submission of supporting documents amounting to N$764 105 was also observed by the auditors.
“The financial statements do not give a true and fair view of the Omaheke Regional Council as of 31 March 2018,” the AG found. The audit was completed in November 2021. - Nampa