Allexer Namundjembo
The National Council Standing Committee on Public Accounts has revealed that the financial situation of the Opuwo Town Council is in disarray.
Peter Kazongominja, the committee chairperson, said the council’s financial records are not reconciling and that there is a lack of staff in the finance department to prepare the council’s statements.
“If it is a matter of capacity, we need to find ways to provide training for those working in the finance department. They need a solution; the accounting officer cannot answer the queries as she was recently hired and still needs more time to familiarise herself with the council’s financial records,” he said.
This led to the public hearing, that was scheduled for last week, to be called off as the auditor could not provide an opinion due to the unbalanced books.
Kazongominja said the committee will sit with all the stakeholders to make a way of assisting the council.
“As a committee, we are writing a letter to the minister to request a meeting with him and the chief executive officer of the Opuwo Town Council. We will discuss urgent measures to address the challenges faced by the council,” Kazongominja said.
The main concern of the committee was the financial records that were not reconciling.
The audit report from the auditor general also found that the council failed to comply with International Public Sector Accounting Standards (IPSAS) 33’, as advised by the line ministry.
The standard allows for exemptions regarding the recognition of assets and liabilities that may affect the fair presentation of inventories, financial instruments, and other items raised in the report.
Committee member Harald Kambrunde questioned the chief executive officer (CEO) about why the council hired a consultant to prepare the financial records.
Opuwo Town Council CEO Matjandjara Katurota admitted that the council is short-staffed, especially in the finance department.
She stated that the council has announced a vacancy for a finance manager and acknowledged that the auditor’s disclaimer is indeed affecting the council’s performance.
“The council has a very busy schedule, and when I joined the council, I wrote a letter to the Auditor General informing him that the council’s financial records are not in order,” she said.
She also admitted that the council did not implement IPSAS 33 as advised by the minister.
“Our financial statements are prepared by a consultant we hired, as we are short-staffed,” she added.
Katurota further indicated that when she received the report from the auditor, she did not submit it to the council for discussion, believing it to be confidential and unsuitable for discussion before the hearing.
She added that the council is in debt, owing Namwater N$40 million, Nored N$3 million, and an amount to NAMRA that she could not confirm.