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Home / Council fumes over N$1.2m overpayment

Council fumes over N$1.2m overpayment

2022-04-12  Eveline de Klerk

Council fumes over N$1.2m overpayment

Eveline de Klerk

WALVIS BAY – Councillors serving on the Walvis Bay municipal council are fuming after the local authority erroneously paid N$1.2 million to a security company. Council has now opted to launch an investigation into the overpayment and take necessary steps against employees for alleged maladministration. 

They are of the opinion that cases of overpayment and negligence are happening too often at the municipality, and that they are blamed for the mishaps of administration. This follows after a security company that is offering ad hoc services to the municipality was overpaid by N$1.2 million last year.

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

“There was a lot of uncertainty as to how the calculations were done between the security company and the relevant division that deals with their invoices – as such, the company was overpaid,” Hoaeb explained. 

As a result, he said, further payments to the Omle Security Services were withheld to recoup the N$1.2 million from them. According to Hoaeb, the firm then sought legal advice due to the dispute and requested that the initial agreement be honoured by the council while they, on their part, make arrangements to pay back the money in instalments. 

“We are dealing with public funds and will take the necessary steps against the department. We cannot always pay money to lawyers for functions, and duties personnel are supposed to do with due diligence.” 

According to information seen by New Era, the security company has been contracted since 2019 for duties at the municipality. New Era understands the company wrongly billed the council from August 2021 until December 2021. 

A reliable source also told this newspaper the overpayment was after the company allegedly indicated the guards were pulling 24-hour shifts on their invoices while they were only doing 12-hour shifts. 

“As a result, the money was overpaid – and interestingly, the invoices were not scrutinised by those dealing with it; otherwise, the discrepancies would have been detected earlier,” a source within the municipality said. 

Speaking yesterday to New Era, Walvis Bay mayor Trevino Forbes said maladministration at the municipality has become a concern for all councillors, as it comes with legal implications at times and that council will have to address the issue urgently. 

“There is a thin line between the duties of council and that of the administration – and it is a line that council don’t want to cross. However, anything carried out by the administration – be it positive or negative – will always be pointed to the council. That is why we are very busy addressing maladministration, as it can become a costly process in the end,” Forbes said yesterday.

 

- edeklerk@nepc.com.na 

 

Caption:

 

Uncalled for… Chairperson of the management committee Richard Hoaeb.

 

Photo: Eveline de Klerk

 

 

 


2022-04-12  Eveline de Klerk

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