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Government auctions 800 cars in one year

Mon, 8 August 2016 15:55
by Rodney Pienaar
News Flash

 

The Ministry of Works and Transport (MWT) has auctioned off 857 vehicles, which were sold along with some agricultural items and building materials from old government buildings in the last financial year The Villager has learned.
This was confirmed by the MWT, Public Relations Officer Julius Ngweda who told The Villager that government made a measly N$35.6 million from the auctions.
“Agricultural items such as poles, fences, corrugated iron sheets, old door frames and window frames from government buildings that were demolished or renovated and written off vehicles were sold in the government auctions,” Ngweda said.
He added that damaged furniture and office equipment are a part of the items that were sold in the auctions held by the MWT.
No unmovable items such as buildings are auctioned off, Ngweda explained.
According to Ngweda the state does not auction off immovable government property such as buildings.
The challenges that are faced by the MWT regarding government auctions are that some of the ministry’s wait until items are not in an good enough shape and state to be auctioned off, thus making it difficult for buyers to bid for the items while members of the public at times also do not pay the amounts they won the bids for.
 “Some of the items that we received from other ministries are way too damaged and the public does not want to buy them at all because of the state they are in. Ministry’s store their equipment and items very long and by the time they are brought here for auctioning they are old,” Ngweda said.
He added that some members of the public come to bid for items at auctions are biding but leave without paying for what they bid for.
“This is a major challenge that we are experiencing at auctions and we only generate a little amount from the funds that are initially expected to be made at the auctions” he said.
Funds generated from government auctions are send to the state accounts treasury The Villager understands.
The funds that are send back to the state coffers are used for various purposes by the Ministry of Finance (MoF), Minister Calle Schlettwein explained when contacted to shed light on what the funds are used for once they are returned to the state coffers.
“Once this funds are back the Ministry of Finance they are not used for a specific function or purpose. The funds loses color, and can be used for the budget purpose or any other matter that requires funds from the ministry,” Schlettwein said.
He added these funds are not earmarked at all for a specific purpose.
In the last financial year over these funds were used for budgetary allocations and some various programs that are under the MoF that needed funding. Less than 20 government auctions were held in the last financial year alone.