Okahandja in financial mess

The Okahandja municipality is in a mess and the town's books are in disarray.

Senior municipal officials were at pains yesterday to explain the council's financial situation to the Parliamentary Standing Committee on Public Accounts.

The Okahandja officials were grilled on the council's financial woes, which included missing public money, inaccessible bank accounts and other irregularities.

The committee was stuck on the first question for about the entire hearing. The chairperson, Peter Kazongominja, in frustration finally proposed that it might be better to move the public hearing to Okahandja where a proper public hearing could be held and anybody could be subpoenaed.

This came after the council's CEO, Martha Mutilifa, was questioned about the municipality's accounts for 2012 to 2014. She said she was not working at the municipality at that time.

The committee specifically wanted to know about the fact that money from the capital reserve and housing fund had to be used to fund shortfalls in the revenue account. That amounted to N$70.3 million in 2014 and N$46 million in 2013.

At the 2016 financial year-end the revenue account had a negative balance of N$44.6 million. These funds were for infrastructure development and were instead used for operational issues, the committee found.

Mutilifa was adamant that a lack of qualified staff was to blame for the council's poor financial management. “There was no financial management in place,” she said.



Political interference

She said she had tried to advertise for qualified staff, but political interference hampered the process.

“I am running a council that has no senior staff in place. The 2015/16 report will be the same as 2013/14 because the same people are doing the same thing.

“I should just admit that we were not doing things right, we might just implicate things further if I try to explain further.

“There were funds from Tipeeg and from the Build Together project missing and the senior financial officer just resigned.”

When Mutilifa was questioned on the municipality's bank accounts and why they did not reflect certain amounts, she said there were 15 bank accounts at one stage, some of which they still could not access.





“Some people are probably still out there that can open these accounts, I should just admit that we are doing things wrong,” she said.

She said that at some banks they were being denied signatory rights to the accounts.

“We are talking of 2012/13 and the same council and management are not there anymore. The board and the CEO were not cooperating and the people were hiding information.”

Kazongominja, however, made it clear that the issue had to be resolved because it was public money.

“I communicated my concern to the mayor and I was told to write a letter to the banks with her signature. The problem is that the previous senior financial manager was also acting CEO and could authorise anything. It took me about four months to get access at some accounts, but Standard Bank and FNB are still a no-go,” said Mutilifa.

According to her she does not even know who has signatory rights to these accounts.

“I don't know about the Build Together account, the money is gone, but who has signatory rights I also don't know.”

According to her these accounts were not disclosed in the auditor-general's reports. She said the senior financial manger just disappeared.

“He resigned from his position because things became too hot.”



'Officials protected'

Mutilifa claimed that “certain people are protected” in Okahandja, and said as long as these people knew how to manipulate the system, no financial control was possible.

She also revealed that the recommendations by the line ministry after a forensic audit had been done were not being fully implemented.

For example, a recommendation that some staff should be suspended was defied by reinstating them.



At this point it was suggested that there should be a thorough investigation at the municipality, but auditor-general Junias Kandjeke pointed out that a forensic investigation had been done already.

“Now we are hearing that the report is not being implemented and staff members are running away when audits are conducted. You have the right to subpoena anybody for information at these hearings,” Kandjeke advised the chairperson.

Kazongominja wanted to stop the hearing and move it to Okahandja. But it was decided that Mutilifa would be given an opportunity to give feedback on the remaining questions.



No strategy

Mutilifa also blamed political interference for the community demonstrations being held regularly at the town.

“We don't even have a strategic plan in place. The system is in chaos because there is a lot of interference from politicians,” the CEO said.

She said when she tried to advertise vacancies for senior staff there was interference time and again. The mayor told her this year that the positions would have to be advertised again “because she had touched the applications”.

“There have even been life-threatening letters that have been sent to me to get rid of me. Yes, it is a risk. And people can hate me, but I am proud of the work that I have done,” she said.

Asked whether she had raised her concerns with the town council, Mutilifa said she was told that she had been appointed to implement the decisions of the council.

Kazongominja said the committee would decide on the way forward as soon as possible.

ELLANIE SMIT