No budget for councils without audited books – Sankwasa

Urban and rural development minister James Sankwasa has warned that local authorities will not receive budget allocations unless they can demonstrate that their financial statements have been audited.

"I said no local authority will get a budget from 1 July until it can prove that its financial statements have been audited up to date," he said during a meeting with senior officials in Otjiwarongo this week.

The minister said public funds cannot continue flowing to councils whose finances are not properly accounted for. He said some local authorities had not had their financial statements audited between 2014 and 2025.

"Those that were audited came back with disclaimers and adverse opinions, yet those local authorities have chief executive officers or acting chief executive officers whose contracts have been extended over and over," Sankwasa added.

Questioning the continued renewal of contracts where performance was lacking, Sankwasa said officials would be held accountable under his leadership.

While acknowledging that the Office of the Auditor General was working through a backlog, Sankwasa said councils should at least have their 2024 and 2025 financial statements audited.

The minister also cautioned councils against spending without approved budgets, deeming it unlawful.

"Anything you spend without a budget is an unauthorised expenditure, and unauthorised expenditure is a criminal offence," he said.

Lack of accountability

Sankwasa criticised what he described as weak oversight by some councillors, arguing that municipal administrations had taken advantage of elected representatives who failed to hold them accountable.

He maintained that withholding budget allocations was necessary to ensure proper accountability for public funds.

"Government must know what is happening with the money that is being pumped into local authorities," he said.

Sankwasa said his visit to Otjiwarongo followed numerous complaints submitted to his office by residents and municipal staff.

He said some of the matters raised were administrative in nature but required political intervention to address what he described as administrative shortcomings.

The minister said the engagement also involved discussions around the relationship between local authorities, regional councils and other government structures, saying there was a need for better coordination between the institutions.

Sankwasa dismissed claims by some municipalities that they did not receive government funding, saying councils remained responsible for accounting for all public money under their control.

"Some local authorities receive direct government subsidy. Some municipalities say they are not getting a government subsidy. Yes, but the money we are collecting from the public is state money," he said.

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