WINDHOEK – Auditor General Junias Kandjeke has reported that Ministry of Land Reform’s Land Acquisition and Development Fund has failed to account for deeds of sale for farms worth N$14 million, bought by government in 2017 for resettlement purposes.
Kandjeke also revealed that the fund failed to submit valuation reports of farms purchase worth N$102 962 553. As a result, accuracy and valuation on farms purchase could not be established.
This is all contained in a report compiled by the Auditor General’s office, tabled in the National Assembly on Tuesday.
Kandjeke in the report said during the audit execution, the auditors observed that the deeds of sale for farms purchase during 2017 amounting to N$13 797 437 were not submitted for audit purposes.
Thus, validity and accuracy of the farms purchase could not be verified.
Also, he said farms purchase amounting to N$13 265 449 that were registered with the deeds office on 31 March 2016 were included as farms purchase for the current year (2017).
Likewise, he said the size of Farm Kotzental No.291 as per listing provided by the fund was 20 262.0097 hectares and the size as per deed of sale documentation was 6 852,2936 hectares.
“The fund could not provide the auditors with an explanation of the difference of 13 409, 7161,” he said.
However, Kandjeke said he appreciate the assistance and co-operation given by the management and staff of the fund.
He recommended that the fund should properly file and safeguard all the relevant documents on farms purchased for future references.
Kandjeke further recommended that the fund should ensure the accuracy of their records and that farm purchases are disclosed in the correct accounting period.
Furthermore, Kandjeke also found that there is no segregation of duties on the processing of journals as the accountant initiate and authorise the journals.
“The control over journals posting and authorisation were not effective during the period under audit,” he said.
He recommended that the fund should implement controls over the initiation, posting and authorisation of journals to ensure that these three functions are not carried out by the same person.
The audit also revealed that farms purchase by the fund since its existence are registered in the name of government.
“It is unclear as to whether they belong to the Ministry of Land Reform or the fund. It is further noted that the annual financial statements were prepared on the assumption that these farms do not belong to the fund,” he said.
In this, Kandjeke recommended that the fund should determine or clarify which entity owns the farms purchased by the fund.
“I further recommend that, if the fund is the rightful owner of the farms, they will then be able to capitalise all farms purchased since the inception of the fund,” he added.
2018-11-23 09:18:07 25 days ago