N$114m unaccounted for in health ministry’s Global Fund Grant
Kandjeke refuses to sign off financials
The Global Fund is a key partner in Namibia's fight against HIV, tuberculosis (TB), and malaria.
Auditor General (AG) Junias Kandjeke has issued a scathing audit of the Ministry of Health and Social Services’ handling of the Global Fund Grant, refusing to sign off on the financial statements for the 2022 and 2023 financial years due to over N$114 million in unaccounted funds.
The findings are detailed in a report dated May 2025 and tabled in the National Assembly this week. In it, Kandjeke issued a disclaimer audit opinion, the most severe form of audit rejection, indicating that insufficient and inappropriate audit evidence had been provided. A disclaimer is issued when an auditor is unable to form an opinion on the financial statements' accuracy, typically due to a lack of verifiable data or access to essential records.
The Global Fund, a key partner in Namibia’s fight against HIV, tuberculosis (TB), and malaria, has disbursed US$372 million to the country between 2004 and 2023.
The report highlights numerous financial discrepancies. General expenses totalling N$2.9 million in 2023 and N$6.9 million in 2022 could not be confirmed due to the non-submission of supporting documentation. Additionally, the auditors were unable to verify VAT refunds recorded in the financial statements, amounting to N$3.6 million in 2023 and N$2.6 million in 2022.
Further issues were identified in the accounting of payables and liabilities, which were disclosed as N$6.7 million in 2023 and N$1.2 million in 2022. These figures could not be substantiated due to a lack of documentation. Property, plant, and equipment worth N$64 million in 2023 and N$17 million in 2022 were also unverifiable, as there was no updated fixed asset register available.
Discrepancies were further detected in employee costs. The audit revealed differences of N$3.2 million in 2023 and N$6.2 million in 2022 between what was reported in the financial statements and the amounts shown in employee summary reports.
“Because of the significance of the matters described, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion,” Kandjeke wrote.
“Accordingly, I do not express an opinion on the financial statement of the Ministry of Health and Social Services Global Fund Grant NAM-Z-MOH as of 31 December 2022 and 2023.” He affirmed that the audit was conducted in accordance with international standards for supreme audit institutions and under the ethical requirements relevant in Namibia.
The report also pointed to serious weaknesses in internal oversight mechanisms. Although the compliance policy manual clearly outlines the roles and responsibilities of key personnel - such as the compliance officer, finance manager, and accounting officer - there was no evidence of independent reviews or formal evaluations of risk management systems and internal controls.
In addition, the ministry failed to provide documentation demonstrating the evaluation of sub-recipients (SRs) and sub-sub-recipients (SSRs), nor were there records showing asset verifications conducted at these entities’ premises. Equally concerning, there were no documents reflecting any constructive recommendations made to improve programme implementation and achieve its goals.
Kandjeke also noted widespread delays in the submission of audit-related documentation. These delays significantly hindered the audit process and prevented the completion of critical procedures. He further clarified that his opinion on the financial statements did not extend to other information included in the report and that he did not express any form of assurance conclusion thereon.
The Global Fund’s financial and technical support has played a central role in reducing the burden of infectious diseases in Namibia. However, its funding comes with high expectations for transparency and accountability.
Previously, under the administration of former US President Donald Trump, a review of foreign aid led to the temporary suspension of funding for some health programmes in Namibia, including those supported by the Global Fund. Although those restrictions were later lifted, lapses such as the ones highlighted in this audit could once again put future funding at risk.
Despite the audit’s findings, government officials remain hopeful that donor confidence will not be shaken and that financial support will continue - provided urgent reforms in financial oversight and accountability are implemented.
The findings are detailed in a report dated May 2025 and tabled in the National Assembly this week. In it, Kandjeke issued a disclaimer audit opinion, the most severe form of audit rejection, indicating that insufficient and inappropriate audit evidence had been provided. A disclaimer is issued when an auditor is unable to form an opinion on the financial statements' accuracy, typically due to a lack of verifiable data or access to essential records.
The Global Fund, a key partner in Namibia’s fight against HIV, tuberculosis (TB), and malaria, has disbursed US$372 million to the country between 2004 and 2023.
The report highlights numerous financial discrepancies. General expenses totalling N$2.9 million in 2023 and N$6.9 million in 2022 could not be confirmed due to the non-submission of supporting documentation. Additionally, the auditors were unable to verify VAT refunds recorded in the financial statements, amounting to N$3.6 million in 2023 and N$2.6 million in 2022.
Further issues were identified in the accounting of payables and liabilities, which were disclosed as N$6.7 million in 2023 and N$1.2 million in 2022. These figures could not be substantiated due to a lack of documentation. Property, plant, and equipment worth N$64 million in 2023 and N$17 million in 2022 were also unverifiable, as there was no updated fixed asset register available.
Discrepancies were further detected in employee costs. The audit revealed differences of N$3.2 million in 2023 and N$6.2 million in 2022 between what was reported in the financial statements and the amounts shown in employee summary reports.
“Because of the significance of the matters described, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion,” Kandjeke wrote.
“Accordingly, I do not express an opinion on the financial statement of the Ministry of Health and Social Services Global Fund Grant NAM-Z-MOH as of 31 December 2022 and 2023.” He affirmed that the audit was conducted in accordance with international standards for supreme audit institutions and under the ethical requirements relevant in Namibia.
The report also pointed to serious weaknesses in internal oversight mechanisms. Although the compliance policy manual clearly outlines the roles and responsibilities of key personnel - such as the compliance officer, finance manager, and accounting officer - there was no evidence of independent reviews or formal evaluations of risk management systems and internal controls.
In addition, the ministry failed to provide documentation demonstrating the evaluation of sub-recipients (SRs) and sub-sub-recipients (SSRs), nor were there records showing asset verifications conducted at these entities’ premises. Equally concerning, there were no documents reflecting any constructive recommendations made to improve programme implementation and achieve its goals.
Kandjeke also noted widespread delays in the submission of audit-related documentation. These delays significantly hindered the audit process and prevented the completion of critical procedures. He further clarified that his opinion on the financial statements did not extend to other information included in the report and that he did not express any form of assurance conclusion thereon.
The Global Fund’s financial and technical support has played a central role in reducing the burden of infectious diseases in Namibia. However, its funding comes with high expectations for transparency and accountability.
Previously, under the administration of former US President Donald Trump, a review of foreign aid led to the temporary suspension of funding for some health programmes in Namibia, including those supported by the Global Fund. Although those restrictions were later lifted, lapses such as the ones highlighted in this audit could once again put future funding at risk.
Despite the audit’s findings, government officials remain hopeful that donor confidence will not be shaken and that financial support will continue - provided urgent reforms in financial oversight and accountability are implemented.
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