Windhoek: The Land Acquisition and Development Fund has come under intense scrutiny following Auditor General Junias Kandjeke's release of an adverse audit report. The report highlights significant financial discrepancies stemming from incomplete financial statements for the year 2025, which fail to adhere to International Public Sector Accounting Standards (IPSAS).
According to Namibia Press Agency, Kandjeke presented his findings to the Speaker of the National Assembly, noting that the fund's financial statements as of 31 March 2025 do not comply with IPSAS standards. "I believe the audit evidence I have gathered is both sufficient and appropriate to support my opinion," Kandjeke stated, pointing out the misclassification of expenditure figures from 2024 as one of the critical issues.
The auditor general's report reveals that farm-related expenses amounting to N.dollars 4.8 million were reallocated to security services and travel-related costs, while office expenses saw a reduction of N.dollars 2.3 million. These adjustments, Kandjeke emphasized, were not explained in the notes and differ from the audited 2024 financial statements.
Kandjeke further expressed concern over the fund's use of cash-basis accounting instead of the accrual basis, which has led to a substantial misstatement of land tax income. He noted that the fund recognized N.dollars 24.3 million in land tax income using this method, which only accounts for income received within the financial year, thus misrepresenting the actual income payable through tax assessments.
The report also highlighted an overstatement of trade receivables by N.dollars 10.9 million related to unpaid land tax to the Namibia Revenue Agency (NamRa). Kandjeke explained that this amount was inaccurately recorded as receivables, failing to meet the IPSAS qualification for a financial asset since the fund lacks control over the associated economic benefits.
Furthermore, the auditor general criticized the fund for inadequate disclosure of significant accounting policies and noted an inability to audit performance due to the absence of a strategic and annual plan. The adverse report has been submitted to Parliament, prompting calls for strategic and policy interventions.