Tsumeb CEO denies claims of N$6 million foreign audit deal
Tsumeb municipality's acting CEO Frans Enkali has dismissed allegations that the town council intends to appoint a South African auditing firm for N$6 million.
Speaking to Namibian Sun on Wednesday, Enkali said that, by law, external audits of local authorities fall under the jurisdiction of the Office of the Auditor-General, and no provisions exist that allow the council to appoint outside audit firms independently.
“External audits used to be done by the Office of the Auditor General. We do not have any auditing company here,” Enkali said.
“How can we even request an external auditor to do it? Under what law? We don't have a provision in the act that says that.”
His comments follow a document dated 12 June, seen by Namibian Sun, which raises concerns over a reported intention by the council to appoint a foreign audit firm to review its finances.
Calls for an investigation
The document, addressed to the auditor general by a concerned resident, questions the legality, necessity and cost of such an appointment.
It cites the Local Authorities Act and Article 127 of the Namibian Constitution, which mandates that all audits of local councils must be conducted either by the auditor general’s office or by an approved auditing firm.
The document calls for an investigation into whether, if such a proposal exists, it complies with these legal provisions.
Beyond legality, the author expressed concern about value for money, noting that the Tsumeb municipality has been grappling with budgetary constraints.
“Committing N$6 million to an external audit, when local qualified auditors could do the same work at significantly lower cost, appears to be an imprudent use of limited public resources,” the letter stated.
Enkali, however, dismissed the document’s interpretation of the law and questioned its credibility.
“There are people who do not know how to read. They know maybe to say ABC, but when they read something, they do not know what it means,” he said.
Meanwhile, when approached for comment, Tsumeb mayor Mathews Hangula distanced himself from the issue, saying he has not been involved in procurement matters since May.
“Those technical matters should be reached out to the office of the CEO,” Hangula advised.
[email protected]
Speaking to Namibian Sun on Wednesday, Enkali said that, by law, external audits of local authorities fall under the jurisdiction of the Office of the Auditor-General, and no provisions exist that allow the council to appoint outside audit firms independently.
“External audits used to be done by the Office of the Auditor General. We do not have any auditing company here,” Enkali said.
“How can we even request an external auditor to do it? Under what law? We don't have a provision in the act that says that.”
His comments follow a document dated 12 June, seen by Namibian Sun, which raises concerns over a reported intention by the council to appoint a foreign audit firm to review its finances.
Calls for an investigation
The document, addressed to the auditor general by a concerned resident, questions the legality, necessity and cost of such an appointment.
It cites the Local Authorities Act and Article 127 of the Namibian Constitution, which mandates that all audits of local councils must be conducted either by the auditor general’s office or by an approved auditing firm.
The document calls for an investigation into whether, if such a proposal exists, it complies with these legal provisions.
Beyond legality, the author expressed concern about value for money, noting that the Tsumeb municipality has been grappling with budgetary constraints.
“Committing N$6 million to an external audit, when local qualified auditors could do the same work at significantly lower cost, appears to be an imprudent use of limited public resources,” the letter stated.
Enkali, however, dismissed the document’s interpretation of the law and questioned its credibility.
“There are people who do not know how to read. They know maybe to say ABC, but when they read something, they do not know what it means,” he said.
Meanwhile, when approached for comment, Tsumeb mayor Mathews Hangula distanced himself from the issue, saying he has not been involved in procurement matters since May.
“Those technical matters should be reached out to the office of the CEO,” Hangula advised.
[email protected]
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