By: Justicia Shipena
The defence ministry executive director, Wilhelmine Shivute, says they did not have an issue with the auditor general auditing their books.
Shivute said this at the public hearing by the Parliamentary Standing Committee on Public Accounts on Tuesday.
This comes as the committee had questioned why the accounting officer at the ministry withdrew the auditor’s access to the military equipment and operational military base.
Shivute then responded, saying that the ministry only had a problem with the inspection relating to the auditing and publishing of key performance indicators.
“This is on the performance information such as the verification on the state of military equipment and the readiness of the Namibian Defence Force (NDF),” said Shivute.
She said the ministry and the auditor general’s office had reached common ground regarding the withdrawal.
Shivute said the auditor general’s office was denied access because they were not authorized to investigate the military capabilities.
“But it is authorized to access military equipment or assets to investigate in relation to an account, account book, register or statement of the ministry,” she said.
However, the committee argued a letter dated 31 October 2019 revoked the auditors from accessing operational military bases and equipment.
“The Accounting Officer, neither the Minister of Defence does not have any powers whatsoever to deny the Auditor-General access to all books, vouchers, other documents, money, stamps, securities, forms having a face or potential value, equipment, stores and other movable goods.”
Shivute stood the grounds and lauded that the ministry did not seek an exemption or prevent the auditor from accessing the financials.
In the issue of outstanding commitments, Shivute said measures were put in place to ensure they are reported in the future.
“Stringent internal control measures, including improved record-keeping in commitment registers, monthly accounts reconciliation, improved follow up with suppliers of goods and services and frequent reconciliation of Funds Distribution Certificates was put in place to ensure that all outstanding commitments are reported annually,” she said.
When asked about the N$1.6 million difference between what the ministry had reported and the general ledger reflects, Shivute said she disagreed with the auditor’s findings.
“The total amount spent on study assistance increased with an amount of N$ 7 498.40 from N$ 10 482, 710.62 as reported, to the N$10 490 209.02,” she added.
Hence she said the tuition fees of a student titled Mateus M was wrongly reported as N$100 940.
“While the amount paid was N$ 108 438.40, therefore it is an increase of N$ 7 498.40,” she explained.
Shivute said that the students who received bursary and study assistance were paid from the research and development capital project.
“The amount involved is N$422 608.24, and the incidental allowances were paid to 34 military officers that underwent military training in various countries. It had nothing to do with
bursary and study assistance.”
Thus she claims the auditor wrongly calculated the total amount of payments for bursaries and study allowances.
To avoid overspending in the ministry, they have put measures to improve record-keeping to the lowest item level.
“Rigorous control measures, including monthly suppliers’ accounts
reconciliation, improved follow up with suppliers of goods and services,” Shivute told the committee.
Shivute agreed that there is an expenditure in the main division of N$ 2 040,682.45.
“This comprises 0.03% of the total budget, and the transport division has an over-expenditure of N$ 4 875,058.35, which comprises 0.33% of the total main division,” she said.
Shivute further added that she disagrees with the findings by the auditors in the construction, renovation and improvement recording the over expenditure.
The auditor’s findings show an expenditure in the division of an amount of N$ 122 354,203.96.
“The overspending is caused by lack of integration of IFS reports on item level, which is not material as the subdivision is not exceeded as per the definition of unauthorized expenditure.”
