Staff Writer
The ministry of defence and veterans affairs’ department of defence overspent its approved budget by N$252.9 million in the 2024/25 financial year, with a 5% salary adjustment contributing to personnel expenditure pressures, according to the Auditor-General’s report.
The department spent N$7.14 billion against an authorised budget of N$6.88 billion for the year ended 31 March 2025.
Auditor-General Junias Etuna Kandjeke, in an audit report signed in July 2026, issued an unqualified opinion on the department’s financial statements but raised concerns about unauthorised expenditure and weaknesses in performance management.
The report attributes much of the overspending to a 5% salary adjustment implemented on 1 April 2024.
Although the department flagged the resulting funding shortfall to the treasury during the mid-year budget review, no additional funding was allocated.
The shortfall affected several military divisions, with the Namibian Army recording the largest overspending at N$114.97 million, followed by the Namibian Navy at N$56.14 million.
The Namibian Air Force overspent by N$21.31 million, the Namibia training division by N$17.86 million and the Namibia Special Forces by N$11.32 million.
The Military Hospital, however, recorded an under-expenditure of N$4.5 million. The accounting officer attributed this to difficulties replacing retired, resigned or deceased medical professionals in specialised positions.
The Auditor-General also questioned a N$4 million payment to the Agrotour Development Initiative Project (ADIP), which was made without documented Cabinet or treasury approval.
According to the report, ministry officials relied on an earlier Cabinet decision to justify the payment. However, the auditors found that the decision covered subsidies for third-party entities and did not include ADIP.
The report also identified continued payments under a N$100.2 million commercial payroll subsidy approved by Cabinet in May 2020 for Ndilimani Pyrotechnics, Windhoek Maschinenfabrikand August 26 Manufacturing.
The original directive did not specify an expiry date or renewal conditions. The department consequently continued paying the subsidies without obtaining subsequent authorisation, resulting in N$4.92 million in unauthorised expenditure by 31 March 2025.
The Auditor-General warned that the amount could increase during the 2025/26 financial year if the payments continued without the necessary approval.
The auditors found that the department’s annual plan and annual plan review reports lacked official signatures or stamps, with only informal initials appearing on the documents.
Performance appraisal reviews by the accounting officer for the third and fourth quarters were missing, while reviews for the first two quarters were delayed by between three and six months.
The report further found that some targets contained in national development frameworks lacked specific timeframes and measurable indicators, making it difficult to assess whether they had been achieved.
Despite the reported weaknesses, the department continues to pursue long-term infrastructure projects expected to be completed by 2030.
These include the upgrading of Leopards Valley Military Base and the construction of Mpacha Military Base.
