WINDHOEK – National Assembly PRO, David Nahongandja, has clarified the return to Treasury of National Assembly N$16.4 million.
Namibia Press Agency (Nampa) in a story published in New Era on Thursday reported that the National Assembly returned N$16.4 million to Treasury.
However, Nahongandja, in a statement last week, said context was missing in the story.
“The facts are as follows: The budget allocations to an Offices, Ministries, Agencies (OMAs) of the State have two components, i.e the development and operational budget,” he said.
He said the development budget is where OMAs pay for their capital projects expenditures, for example, constructions, renovations, while the operational budget funds operation and administrative expenses such as salaries, DSA and other expenses related to the institution’s administration and personnel condition of services.
He explained that for the financial year 2017/2018, the National Assembly was allocated N$14 million under its development budget.
“Out of this, N$2 054 554.45 was spent leaving a balance of N$11 945 445.55 unspent,” he said.
“On the operational budget account, a savings of N$4 468 035.05 was returned to Treasury due to some planned official trips, which were cancelled, vacant positions which could not be filled or positions which became vacant during the financial year due to staff movements i.e resignations and retirements,” he added. He further noted that development budget was strictly meant for the renovation of an aged –107-year-old Parliament Building. However, he said the renovations could not take place during the financial year due to the cumbersome tendering process as a result of the new Public Procurement Act (Act 15 of 2015), thus, the money was returned to Treasury.
“In terms of the State Finance Act, 1991 (Act 31 of 1991) and Treasury Instructions, savings emanating from development budget cannot be redirected to any other operational activity, including Parliamentary Standing Committees activities, and as such, the funds have to be returned to Treasury,” he said.
He said it is absolutely correct and fundamentally within the prescribed financial procedures to return monies saved on capital projects and personnel expenses to Treasury at the end of the financial year.
“This is the normal practice in the public sector anywhere in world,” he said.
2019-05-20 10:13:54 4 months ago