Walvis Bay:The Municipality of Walvis Bay has received an adverse audit opinion for the fiscal year ending June 30, 2025, due to significant financial reporting discrepancies identified by the Auditor-General.

According to Namibia Press Agency, the audit, detailed in Auditor-General Junias Kandjeke's Report No. 65/2026, highlights several material misstatements in the municipality's financial records. These include inaccuracies in investments, land sales, receivables, past errors, salaries, and cash-flow reports, all of which contravene International Public Sector Accounting Standards (IPSAS).

One critical issue identified was the understatement of the municipality's investments in associates and a joint venture by N$624.15 million. These investments, which involve entities such as Erongo RED, Walvis Export Processing Zone, and Walvis Bay Waterfront Property, were incorrectly accounted for at cost rather than using the equity method as mandated by IPSAS 36. Additionally, the municipality understated its share of the surplus or deficit of these entities by N$50.15 million for the year.

The audit also found that N$9.22 million in revenue from property transfers was omitted from the financial statements. This omission was linked to the municipality's failure to maintain a comprehensive land register, which should reflect available land, reconciled inventory, and land sales during the year.

Further concerns were raised regarding the accuracy of the municipality's impairment provision for receivables. The provision for receivables aged between zero and 30 days exceeded the related debtors by N$9.25 million, creating a negative debtor balance or liability.

The municipality made net corrections of prior-period errors totaling N$38.04 million without restating the previous financial statements, contrary to standard accounting practices. Additionally, a 5% salary increment was implemented without the necessary ministerial approval, despite requests for further documentation to confirm compliance.

Deficiencies in land accounting were also noted, as the municipality failed to provide a reconciliation of the total land under its jurisdiction and its allocation by land-use categories. Finally, inconsistencies in the statement of cash flows were reported, specifically a N$59.85 million discrepancy in cash paid for property, plant, and equipment, which did not align with total acquisitions of N$102.17 million.