City's employee costs hit N$1.53 billion

The City of Windhoek spent N$1.53 billion on employee costs, about 31% of total revenue of N$4.98 billion in the 2023/24 financial year — meaning almost one third of the city’s spending went toward salaries. This figure emerges at the centre of an audit that also recorded total expenditureof N$4.91 billion and a deficit of N$66.34 million, while the Office of theAuditor-General declined to express an opinion on the credibility of thefinancial statements. In his report tabled in Parliament on Thursday, Junias Kandjeke issued adisclaimer of opinion, stating he was unable to obtain sufficient appropriateaudit evidence to provide a basis for an audit opinion.“Accordingly, I do not express an opinion on these financial statements,” Kandjeke wrote. A disclaimer is the most severe audit outcome an organisation can obtain. Salary increments exceeded approved limitsAuditors found that the municipality implemented a 5% salary increment agreed with the Namibia Public Workers Union (Napwu), despite only a 3% increase being approved by the line minister at the time. This resulted in employee costs beingoverstated by N$19.8 million in 2024, N$72 million in 2023 and N$24 million in2022. The overstated amounts indicate that the higher increment had financialimplications beyond what was authorised. Kandjeke noted that auditors were not satisfied with the occurrence of the expenditure, effectively questioning whether the payments complied with the required approval framework. The finding raises governance concerns about adherence to financial controls and whether council exceeded its authority in determining remuneration adjustments. PPP transactions missingKandjeke said the financial statements did not disclose the accounting policy forpublic-private partnership (PPP) transactions and related balances. He furthernoted that the municipality did not account for transactions and relatedbalances of PPP arrangements because the related financial statements were notmade available by the PPP partners.Auditors were therefore unable to obtain sufficient appropriate audit evidence regarding the transactions and balances related to PPP arrangements. Data manipulation concernsThe audit report also highlighted concerns regarding deleted client transactionsand weaknesses in the municipality’s IT control environment.Kandjeke said the impact of deleted client transactions and related balances was not assessed or quantified because no forensic investigation was conducted.Instead, a review of payment mismatches was performed, noting discrepanciesbetween the Archive and Solaris systems, including delayed transaction postingsand missing receipts in the Cash Drawer system.The root causes were identified as outdated security policies, password parametersnot configured in line with industry best practice, inadequate user accessmanagement, lack of audit logging trails to monitor changes, and insufficientprivileged access management.“The auditors therefore could not ascertain the impact of the data manipulation on the 2023 and 2024 financial statements,” Kandjeke said.Auditors were also unable to determine whether adjustments might have been necessary in respect of the impact of the data manipulation on the relevant financial statement areas.Land records and asset verificationIn addition, while the municipality provided a land reconciliation detailing totalland size under its jurisdiction and its allocation by land use, auditors couldnot satisfy themselves with the accuracy and completeness of land recognisedunder property, plant and equipment, investment property and inventory. Revenue and expenditure breakdownRevenue from non-exchange transactions amounted to N$870.82 million, while exchange transactions totalled N$4.11 billion. Property rates generated N$773.04 million and levies contributed N$24.19 million. Other government entities added N$24.97 million, with public contributions and donations totalling N$14.39 million.Fines, penalties and levies brought in N$27.18 million, while licences andpermits accounted for N$7.07 million.Service charges remained the largest contributor under exchange transactions at N$3.90 billion. Rental of facilities and equipment brought in N$33.29 million,dividends yielded N$958,400, gains on continued operations stood at N$3.97million, profit on the sale of land reached N$6.79 million, other incomeamounted to N$70.01 million, interest on investments N$31.75 million, andinterest on outstanding debtors totalled N$66.02 million.On the expenditure side, bulk purchases accounted for N$2.13 billion, employeecosts N$1.53 billion, remuneration of councillors N$8.55 million, depreciationand amortisation N$499.24 million, general expenses N$337.99 million, financecosts N$159.96 million, contracted services N$117.31 million, and repairs andmaintenance N$311.01 million. Grants and subsidies amounted to N$5.64 million.Debt impairment reflected a negative N$182.63 million, while impairment ofassets was N$52,410 and losses from other operations N$57,636.

City's employee costs hit N$1.53 billion

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Namibian Sun 2026-07-30

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City's employee costs hit N$1.53 billion

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Namibian Sun 2026-07-30

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