Lack of accountability for bad audits threatens municipal financial health
Public must act to stem poor financial governance
Political apathy fuels poor financial mismanagement at municipalities, an analyst warns.
“There must be consequences – and there are none.”
So says political analyst Professor Johan Coetzee from the Namibia University of Science and Technology (NUST), in response to the unfavourable audit opinions recently issued by the auditor-general on the finances of several municipalities.
He believes there should be political will to obtain an unqualified, clean audit report.
“Political interest is one of the biggest variables that can create a culture of irresponsibility and lack of accountability,” Coetzee said.
“If people are not held politically accountable, you create systemic problems – as we’ve seen in Grootfontein, where the auditor-general specifically referred to ‘systemic problems’, meaning it’s not a single issue but something embedded in a network – and this is part of a culture that exists in Namibia," Coetzee said.
“It’s not an exception – Okahandja, Keetmanshoop – we see the amounts of money for which there is no accountability, and then it takes years before anything is done," he added.
Too late to address
The fact that audit reports are issued years after the period under review, he noted, also hinders accountability.
“The problem with audit reports in general is that they come too late. The audit reports currently tabled in parliament are from June 2020 in the case of Grootfontein and most other municipalities.
“Then you ask yourself: what is the purpose of these reports? How should things change? They can and must change. We have the ability to change, but it depends on political will and the drive to make those changes,” he stressed.
Municipalities are often under the leadership of a new council by the time the auditor-general issues an audit opinion.
“In the case of Grootfontein, that was three years ago and under a previous council. Now there is a new council dominated by a different political party. They face the challenge of resolving existing problems before they can implement good financial practices based on international accounting standards and introduce more professionalism,” Coetzee explained.
Turning a blind eye
According to Coetzee, the public is not without blame and everyone needs to become actively involved in local politics.
“People are not getting involved. There are numerous systemic problems that must be addressed – not just politically, but also driven by people who need to participate more.”
“People themselves are also struggling to survive and do not always have the financial knowledge to understand financial statements,” he said.
Coetzee suggested that members of the public start by attending municipal council meetings and local community meetings at least once a month. He also called on parliament to follow through when the auditor-general issues opinions on municipalities’ financial affairs.
“Parliament must either accept or reject these reports and explain why. Then action must be taken,” he said.
Catch Coetzee’s full interview on Network Media Hub’s Afrikaans current affairs programme, Kletskompas, on NTV (DStv channel 285 and GOtv channel 25), as well as on oneuptwo.com.
So says political analyst Professor Johan Coetzee from the Namibia University of Science and Technology (NUST), in response to the unfavourable audit opinions recently issued by the auditor-general on the finances of several municipalities.
He believes there should be political will to obtain an unqualified, clean audit report.
“Political interest is one of the biggest variables that can create a culture of irresponsibility and lack of accountability,” Coetzee said.
“If people are not held politically accountable, you create systemic problems – as we’ve seen in Grootfontein, where the auditor-general specifically referred to ‘systemic problems’, meaning it’s not a single issue but something embedded in a network – and this is part of a culture that exists in Namibia," Coetzee said.
“It’s not an exception – Okahandja, Keetmanshoop – we see the amounts of money for which there is no accountability, and then it takes years before anything is done," he added.
Too late to address
The fact that audit reports are issued years after the period under review, he noted, also hinders accountability.
“The problem with audit reports in general is that they come too late. The audit reports currently tabled in parliament are from June 2020 in the case of Grootfontein and most other municipalities.
“Then you ask yourself: what is the purpose of these reports? How should things change? They can and must change. We have the ability to change, but it depends on political will and the drive to make those changes,” he stressed.
Municipalities are often under the leadership of a new council by the time the auditor-general issues an audit opinion.
“In the case of Grootfontein, that was three years ago and under a previous council. Now there is a new council dominated by a different political party. They face the challenge of resolving existing problems before they can implement good financial practices based on international accounting standards and introduce more professionalism,” Coetzee explained.
Turning a blind eye
According to Coetzee, the public is not without blame and everyone needs to become actively involved in local politics.
“People are not getting involved. There are numerous systemic problems that must be addressed – not just politically, but also driven by people who need to participate more.”
“People themselves are also struggling to survive and do not always have the financial knowledge to understand financial statements,” he said.
Coetzee suggested that members of the public start by attending municipal council meetings and local community meetings at least once a month. He also called on parliament to follow through when the auditor-general issues opinions on municipalities’ financial affairs.
“Parliament must either accept or reject these reports and explain why. Then action must be taken,” he said.
Catch Coetzee’s full interview on Network Media Hub’s Afrikaans current affairs programme, Kletskompas, on NTV (DStv channel 285 and GOtv channel 25), as well as on oneuptwo.com.
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