Auditor General has given the Okahandja Municipality an adverse audit opinion for the 2016/17

Auditor General Junias Kandjeke has given the Okahandja Municipality an adverse audit opinion for the 2016/17 financial year for its failure to provide financial statements that give a true reflection of the institution's financial standing.

An adverse audit opinion is a professional opinion made by an auditor indicating that a given organisation's financial statements are misrepresented, misstated and do not accurately reflect its financial soundness.

This revelation is captured in the Okahandja Municipality's audit report for the 2016/17 financial year, which was submitted to the National Assembly for further handling by Deputy Finance Minister Natangwe Ithete on Wednesday.

In my opinion, because of the significance of the matters discussed in the basis for the adverse audit opinion section of my report, the financial statements do not present fairly, in all material respects, the financial position of the Municipality of Okahandja as at 30 June 2017, Kandjeke said.

He premised his opinion on eight key financial discrepancies that were uncovered when the audit was conducted; one being that the municipality's provision for bad debts was overstated by N.dollars 9.9 million.

The auditors also found that there was no documentary evidence to verify Namibian Traffic Information System (NaTIS) claims amounting to N.dollars 3.7 million and further, that there is no list of beneficiaries available to verify N.dollars 1.2 million worth of advances made towards the Build Together housing scheme at the town.

Source: Namibia Press Agency