Nkurenkuru instructed to fix mess

The Nkurenkuru town council has been ordered to supply answers to the auditor-general's queries.

15 August 2019 | Government

The National Council Standing Committee on Public Accounts and Economy has instructed the Nkurenkuru town council to deal with the queries raised in an auditor-general's report, which points to poor accounting practices.

Committee chairperson Peter Kazongominja and his fellow MPs told Nkurenkuru CEO Petrus Sindimba and the council's finance officer Jairus Kakoro on Tuesday to provide satisfactory answers to the concerns raised in the report.

The main objective of the public hearings is to consider material findings raised in auditor-general reports and compile a report with recommendations to be tabled in the National Council.

According to the auditor-general's report on the Nkurenkuru town council for the 2017/18 financial year there were a number of issues detected by the auditors that need serious intervention, for the sake of transparency. It was discovered that the council does not have a fair presentation framework for financial reporting and no detailed fixed asset register. There is also no depreciation policy and there was a non-disclosure of a bank account with an amount of about N$41 000 in it.

It was further discovered that the council had an appropriation balance of about N$7 million between the opening and closing balances.

The financial information also did not include a cash flow statement and notes, while there were also unexplained adjustments on expenditure and revenue amounting to about N$5 million and N$2 million, respectively.

The council also did not provide erven sale agreements to the auditors, as well minutes of the procurement committee meetings that awarded two tenders amounting to a combined N$6 million.

The issue of conflict of interest was also raised, as the council did not present any declarations for those sitting on the procurement committee.

Council's response

Sidimba explained that the undisclosed bank account is a holding account for the Nkurenkuru Trade Fair Expo and is not used for operational activities.

Sidimba said the non-disclosure was an oversight on their part, as they relied on the consultant who used to prepare their financial statements.

“We have taken note of it and we will ensure that all our accounts are disclosed,” Sindimba said.

On the issue of the appropriation account difference of about N$7 million, Sindimba said it was a human error on their part.

He said it resulted from the council having recorded an accumulated surplus of about N$15 million at the end of the financial year ending 30 June 2017, while the opening balance on 1 July 2017 in the financial statement shows an amount of about N$22 million.

Sindimba also explained that they relied on the International Public Sector Accounting Standards (IPSAS) depreciation calculator, which is why they did not have a depreciation policy in place.

On the lack of land sales agreements, Sindimba said they were only issuing deeds of sale and not sales agreements. However, a council resolution was passed that land sales agreements were to be used. The agreement was presented in the parliamentary meeting.

The parliamentary committee applauded Sidimba for his honesty, especially by admitting they had omitted some of the required documents and for assuring them he will take the advice of the committee to heart.


Similar News


NEPC financial woes due to laziness

3 days ago - 22 August 2019 | Government

Cash-strapped state-owned New Era Publications Corporation (NEPC)'s acting CEO Benjamin Jakobs has attributed the corporation's failure to account for N$33.5 million to employees' poor work...

Geingob blitzes Baumgartsbrunn

1 week ago - 16 August 2019 | Government

The Christmas Eve-like excitement of the Baumgartsbrunn community was abruptly cut short yesterday when President Geingob spent minutes with them. The purpose of this...

New plot saga at Omuthiya

1 week ago - 16 August 2019 | Government

Omuthiya deputy mayor Hisikiel Nanyeni, who previously served as the town's mayor, is being accused of allocating himself a residential plot at Extension Five in...

Iigongi yomupresidende kayi shi omahwahwameko gomahogololo

1 week ago - 16 August 2019 | Government

Omupopiliko gwomupresidende, Alfredo Hengari okwa tindi omapopyo ngoka taga ningwa kutya iigongi mbyoka tayi ningwa kOmupresidende Hage Geingob noshigwana, oyi li omahwahwameko gomahogololo taga ningwa...

Nkurenkuru instructed to fix mess

1 week ago - 15 August 2019 | Government

The National Council Standing Committee on Public Accounts and Economy has instructed the Nkurenkuru town council to deal with the queries raised in an auditor-general's...

Too many questions

1 week ago - 14 August 2019 | Government

Exclusion claims in the spotlight

2 weeks ago - 09 August 2019 | Government

President Hage Geingob yesterday hit back at his detractors who have over the years accused his administration of allegedly side-lining the people from the two...

Mushelenga intervenes in Omuthiya standoff

2 weeks ago - 09 August 2019 | Government

Urban and rural development minister Peya Mushelenga has given the Omuthiya town council two weeks to motivate their decision not to renew the employment contract...

Town hall meeting fallout

2 weeks ago - 08 August 2019 | Government

Omuthiya management committee chairperson Beata Nashongo says she will take unspecified action against former councillor Moses Amukoto for claiming at a presidential town hall meeting...

Govt tackles tender woes

2 weeks ago - 06 August 2019 | Government

The sixth edition of Procurement Tracker Namibia (PTN), issued this week, highlights that a high-level government meeting convened in July to address the troubles that...

Latest News

Soldier charged with shebeen burglaries

2 days ago - 23 August 2019 | Crime

A member of the Namibia Defence Force has been arrested in connection with burglaries at six shebeens at Okakango location in Ondangwa.Operation Kalahari members have...

Letting the big fish swim

2 days ago - 23 August 2019 | Columns

Prosecutor-General Martha Imalwa has opened a Pandora's Box, following her revelations this week that any hopes of Namibia recovering the over N$600 million lost in...

Swapo threatened with court action

2 days ago - 23 August 2019 | Politics

Five Swapo members have threatened to take the party to court if their demand for the re-run of the Otjiwarongo district renewal of mandate process...

Dumpsite scramble

2 days ago - 23 August 2019 | Environment

Several municipalities are moving fast to comply with the ministry of environment's new regulations, which require towns to obtain environmental clearance certificates for their dumpsites.So...

Khomas elects Swapo 'pot' contenders

2 days ago - 23 August 2019 | Politics

The Swapo leadership in the Khomas Region have elected businesswoman Martha Namundjebo-Tilahun and 30-year-old City of Windhoek councillor Ian Subasubani to stand as National Assembly...

Land acquisition fund deemed unnecessary

2 days ago - 23 August 2019 | Agriculture

The Parliamentary Standing Committee on Public Accounts Committee questioned the existence of the Land Acquisition and Development Fund because government already has a finance system...

Certified royalty

2 days ago - 23 August 2019 | Art and Entertainment

King Tee Dee, formerly known as The Dogg, is an artist who has come full circle. After many years spent dominating the music scene by...

Battling creative exhaustion

2 days ago - 23 August 2019 | Columns

We have all heard this advice before - we can't continue to be productive and creative if we exhaust ourselves, or if we fail to...

The Fashion Soireè returns

2 days ago - 23 August 2019 | Art and Entertainment

Hosted by three of Namibia's fashion darlings; Reinhard Mahalie, Jay Aeron and Rumano Fabrishh, The Fashion Soireè is the first of its kind in Namibia.More...

Load More