Kandjeke flags State House’s N$132m unauthorised expenditure
STAFF REPORTERWINDHOEKAn auditor-general’s report for the year ending 31 March 2024 paints a picture of persistent irregularities in the Office of the President’s expenditure.From overspending and misuse of credit cards to unauthorised allowances and weak performance reporting, the findings call for immediate corrective action to strengthen internal controls, recover funds and restore public confidence.
At the centre of the concerns is unauthorised expenditure amounting to more than N$132 million.
This includes N$131.8 million overspent across thirteen operational subdivisions and a further N$273 273 overspent on one central division, despite Treasury authorisation to redirect funds.
Former presidents
and first ladies
Auditor-general (AG) Junias Kandjeke’s audit report also raises concerns about allowances paid to former presidents and first ladies, particularly under entertainment costs.
The audit found that these allowances continue to be paid from the daily subsistence allowance (DSA) subdivision rather than through a proper budget line allocated for former presidents.
In the 2023/24 financial year, the Office of the Former Presidents was allocated N$17.34 million, but only N$14.95 million was spent, leaving an underspend of N$2.39 million (13.78%). This marked an increase from the previous year’s expenditure of N$12.78 million in 2022/23.
The report further noted that no clear policy or guideline exists to regulate such payments, and some items recorded as “entertainment” were not entertainment-related.
Despite commitments made during the 2022/23 audit to correct this practice, it persisted during 2023/24, the report found.
Credit card irregularities
Misuse of credit cards was a recurring theme.
About N$93 180 was withdrawn and used as gratuity payments for the president’s security and protocol team during official missions, the report states.
Auditors, however, found no signed proof from recipients to confirm the authenticity of the payments.
In another instance, during a trip to Russia, a cardholder was issued US$5 000 but only spent US$4 000. The unused US$1 000 (N$17 970) was never accounted for, as no deposit slip was provided.
A further N$24 227.56 was paid for accommodation based on a quotation rather than an invoice, with no proof of payment attached.
The audit also noted that during a September 2023 trip to Paris, the accommodation and meals of a non-government employee were paid using the office’s card, while a double payment of N$998 288.17 appeared on the accounts.
Advances and suspense accounts
The report found subsistence and travel advances of N$299 957.10 still outstanding. Instead of being settled, these amounts were rolled over into subsequent trips, which reduced allowances and delayed recovery.
Additionally, the electronic fund transfer (EFT) suspense account had an unexplained balance of N$328 676.66 at year-end, contrary to requirements that such accounts must be cleared.
For the second consecutive year, the Office of the President was reported to lack a disaster recovery policy and plan.
The AG warned that without such measures, service continuity in the event of disasters cannot be guaranteed, leaving the office exposed to significant risks.
While the Office of the President reported achieving goals such as attracting N$5 billion in foreign investment in the green and blue economy and holding 14 civic engagements, auditors said no evidence was provided to substantiate these claims.
The absence of supporting documentation, they concluded, makes the reported achievements unreliable and undermines the credibility of the office’s performance reporting.
At the centre of the concerns is unauthorised expenditure amounting to more than N$132 million.
This includes N$131.8 million overspent across thirteen operational subdivisions and a further N$273 273 overspent on one central division, despite Treasury authorisation to redirect funds.
Former presidents
and first ladies
Auditor-general (AG) Junias Kandjeke’s audit report also raises concerns about allowances paid to former presidents and first ladies, particularly under entertainment costs.
The audit found that these allowances continue to be paid from the daily subsistence allowance (DSA) subdivision rather than through a proper budget line allocated for former presidents.
In the 2023/24 financial year, the Office of the Former Presidents was allocated N$17.34 million, but only N$14.95 million was spent, leaving an underspend of N$2.39 million (13.78%). This marked an increase from the previous year’s expenditure of N$12.78 million in 2022/23.
The report further noted that no clear policy or guideline exists to regulate such payments, and some items recorded as “entertainment” were not entertainment-related.
Despite commitments made during the 2022/23 audit to correct this practice, it persisted during 2023/24, the report found.
Credit card irregularities
Misuse of credit cards was a recurring theme.
About N$93 180 was withdrawn and used as gratuity payments for the president’s security and protocol team during official missions, the report states.
Auditors, however, found no signed proof from recipients to confirm the authenticity of the payments.
In another instance, during a trip to Russia, a cardholder was issued US$5 000 but only spent US$4 000. The unused US$1 000 (N$17 970) was never accounted for, as no deposit slip was provided.
A further N$24 227.56 was paid for accommodation based on a quotation rather than an invoice, with no proof of payment attached.
The audit also noted that during a September 2023 trip to Paris, the accommodation and meals of a non-government employee were paid using the office’s card, while a double payment of N$998 288.17 appeared on the accounts.
Advances and suspense accounts
The report found subsistence and travel advances of N$299 957.10 still outstanding. Instead of being settled, these amounts were rolled over into subsequent trips, which reduced allowances and delayed recovery.
Additionally, the electronic fund transfer (EFT) suspense account had an unexplained balance of N$328 676.66 at year-end, contrary to requirements that such accounts must be cleared.
For the second consecutive year, the Office of the President was reported to lack a disaster recovery policy and plan.
The AG warned that without such measures, service continuity in the event of disasters cannot be guaranteed, leaving the office exposed to significant risks.
While the Office of the President reported achieving goals such as attracting N$5 billion in foreign investment in the green and blue economy and holding 14 civic engagements, auditors said no evidence was provided to substantiate these claims.
The absence of supporting documentation, they concluded, makes the reported achievements unreliable and undermines the credibility of the office’s performance reporting.
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