Defence overspends N$4.9m on August 26, others' salaries

The ministry of defence and veterans affairs’ department of defence continued subsidising payroll costs of three companies beyond the 2020/2021 financial year without Cabinet reauthorisation, resulting in N$4.9 million in unauthorised expenditure.Auditor general (AG) Junias Kandjeke's audit for the financial year ended 31 March 2025 shows that the deparment of defence signed off N$100.2 million on 19 May 2020 to subsidise the payroll costs of Ndilimani Pyrotechnics, Windhoek Maschinenfabrik and August 26 Manufacturing.However, Kandjeke found that the original approval did not specify when the subsidy would expire, how long it would remain in force or the conditions under which it could be renewed.“The Cabinet decision and related memorandum did not specify a lapsing date, duration, or renewal conditions for the approved subsidy,” the report states.“The department has continued to subsidise the payroll expenses of the three entities beyond the 2020/2021 financial year without any subsequent Cabinet review or reauthorisation,” it adds.Kandjeke warned that “continuing based on the original Cabinet authority may no longer be applicable”.The audit established that the department had spent N$105 million on the subsidy between the date of the Cabinet decision and 31 March 2025, exceeding the approved allocation by N$4.9 million.It identifies the excess as “unauthorised expenditure” and warns that the amount could increase because payments were continuing.“Since the department is still incurring this type of expenditure in the financial year 2025/2026, the unauthorised expenditure is anticipated to increase,” the report states.Treasury approval missingIn a separate finding, Kandjeke flagged a N$4 million payment to the Agrotour Development Initiative Project (ADIP) for which no Cabinet or Treasury authorisation was documented.“The audit revealed that an amount of N$4 000 000 [N$4 million] was approved and disbursed to the Agrotour Development Initiative Project (ADIP) without documented Cabinet or Treasury authorisation,” the report states.The report found that the Cabinet decision cited in support of the payment did not cover ADIP.“The approval was justified using a Cabinet decision, which relates exclusively to subsidies for Ndilimani Pyrotechnics, Windhoek Maschinenfabrik, and August 26 Manufacturing, and does not include the Agrotour Development Initiative Project.”The report consequently found that the expenditure could not be confirmed as authorised under the applicable legislation and Treasury instructions.OverspendingThe report also identifies overspending across several military divisions, including the Namibian Army, the Namibian Navy, the Namibian Air Force, training and special forces.The army exceeded its authorised budget by approximately N$114.98 million, while the Navy overspent by approximately N$56.15 million. The Air Force exceeded its allocation by approximately N$21.31 million.The report attributes much of the overspending to remuneration costs following the implementation of a 5% salary adjustment effective 1 April 2024. It states that the department had identified personnel expenditure shortfalls during the mid-year budget review, but additional funds were not allocated.nikanor@nmh-hub.com.na

Defence overspends N$4.9m on August 26, others' salaries

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Namibian Sun 2026-10-15

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Defence overspends N$4.9m on August 26, others' salaries

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Namibian Sun 2026-10-15

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