Renthia Kaimbi
Minister of urban and rural development James Sankwasa has issued a warning to local authorities failing to comply with auditing regulations, stating that those with outstanding financial reports will not have their budgets approved.
In an interview with the Windhoek Observer, Sankwasa revealed that some councils have not had their books audited since 2015 and have pending financial reports, a situation he described as unacceptable and a direct contravention of the law.
“Government money needs to be audited and even the Regional Councils and Local Authorities Acts talk about annual auditing, every year,” Sankwasa stated, questioning how the government can ensure public funds are spent appropriately without these financial checks.
He confirmed that he has instructed councils to submit their reports before any new budget approvals are granted.
He further addressed the leadership of these councils, questioning the performance of chief executive officers who have been in their positions for a decade without ensuring financial accountability.
“They cannot serve 10 years as chief executive officers, and even extend their contracts as if they’re good performers but there is nothing they’re performing,” he remarked, adding that he has received contract extension applications for some chief executive officers despite what he perceives as a lack of performance.
Following the end of the annual financial years for councils on 30 June, the Windhoek Observer sought to establish which authorities had complied with the minister’s directive.
However, Etuna Shikalepo, the chief public relations officer in the ministry, who confirmed that most local authorities have submitted their financial reports and had their budgets approved, stated that the ministry is currently unable to name which councils have failed to submit their reports or have incomplete applications.
“The budget approval process involves analysing each budget against the prescribed requirements and criteria that all Local Authorities must comply with before approval can be granted. While some Local Authorities have submitted their budgets, a number of submissions remain incomplete due to outstanding supporting documentation, which must be provided before the budgets can be approved,” she explained.
The issue of financial mismanagement at local authorities has been a recurring theme. While the ministry’s public relations office could not confirm the status of individual councils, the Auditor General’s reports have previously painted a grim picture of financial governance in some municipalities.
For instance, an audit report on the Rehoboth Town Council for the period from 2017 to 2019 revealed an accumulated deficit of nearly N$37 million, with assets being exceeded by expenses and unexplained variances of millions in payroll and bank reconciliations.
Similarly, reports on other councils have cited late submissions and non-compliance with the Local Authorities Act, which requires financial statements to be submitted within three months of the financial year-end.
The minister has previously expressed that “the absence of the auditing report makes it difficult to assess the financial position and effective management of public funds.”
Shikalepo further stated that the ministry is currently hosting a five-day Financial Management Workshop in Swakopmund aimed at strengthening financial governance and compliance.
“The workshop focuses on key aspects of financial management, including the audit process, accountability, and public financial management, with the aim of strengthening financial governance and compliance across local and regional government institutions,” she told the Windhoek Observer.
