By: Peneyambeko Jonas
The Ondangwa Town Council is facing questions over its financial management after the Auditor-General issued a qualified audit opinion on the council’s financial statements for the year ended 30 June 2024.
The findings were presented during a public hearing by the Parliamentary Standing Committee on Public Accounts at the Rössing Foundation in Ondangwa.
The audit raised concerns about the council’s financial disclosures, loan reporting, remuneration and expenditure on travelling and subsistence allowances.
The council spent N$1.8 million on travelling and subsistence during the period under review, despite a ministerial directive against implementing the relevant allowance policy.
The committee questioned council officials on whether the money would be recovered.
“Are you going to pay back the N$1.8 million spent on allowances that belong to the public, as well as the unlawful remuneration paid to the CEO?” the committee asked.
From an economic perspective, the issue raises concerns about how local authorities manage limited public resources.
Money spent outside approved policies reduces the funds available for municipal services such as infrastructure, water, sanitation and other community needs.
The Auditor-General also found that the council increased the remuneration of Chief Executive Officer, Ismael Namugongo, despite the Minister’s refusal to approve the adjustment.
Namugongo defended the payment, saying the council had asked him to remain after he had resigned to take up another position.
“On my salary without the approval of the ministerial was not conflict of interest. When I resigned to take up another position, the council requested me to stay and assist the council,” Namugongo said.
He added that the council had written to him with an offer, which he revised and accepted.
On the N$1.8 million travelling and subsistence expenditure, Namugongo told the committee that the spending was an error.
“The N$1.8 million that was spent on subsistence and travelling allowances was an error,” he said.
Committee members also questioned the council’s reliance on external consultants to prepare its financial statements.
Committee member, Bertha Nghifikwa, raised concerns that dependence on consultants could place an additional cost on taxpayers while limiting the council’s internal knowledge of its own finances.
She called for regular training and skills development for staff responsible for financial management.
Job Amupanda said there was a gap between the council’s political leadership and its administration.
“There is a disconnect between political leadership’s understanding and the administration,” Amupanda said.
He said the council must reach a point where all requirements are met and stressed that every cent of public money must be accounted for.
The audit also identified inadequate disclosures relating to Build Together loans, loan movements, valuation assumptions and loan terms.
The council was further criticised for moving N$4 million from reserves to retained earnings without proper disclosure and for insufficient reporting on provisions for rehabilitating the landfill site.
Mayor Ester Mweneni Auala opened the session, which was attended by council members, CEO Namugongo and senior management officials.
The hearing placed financial management at the centre of the council’s responsibilities.
For Ondangwa residents and taxpayers, the key issue is not only how much money is spent, but whether public funds are used lawfully, disclosed properly and translated into services and development for the town.
penny@eaglefm.com.na
