Tunis:The Ministry of Defence and Veterans Affairs overspent its budget by N$252.9 million for the financial year ending March 31, 2025, despite receiving an unqualified audit opinion from Auditor-General Junias Kandjeke.
According to Namibia Press Agency, the audit report from Kandjeke indicated that the ministry's financial statements accurately reflected its financial status in line with relevant laws and regulations. However, the audit highlighted several shortcomings in financial management, including expenditures exceeding approved allocations, unreconciled travel advances, and unapproved performance plans.
The report detailed that the ministry surpassed its total authorized budget by N$252.9 million, with eight divisions collectively overspending by N$261.2 million. Even with Treasury-approved budget reallocations, 16 operational subdivisions exceeded their limits by N$289.5 million, and one development subdivision reported an over-expenditure of N$27.4 million.
Additional weaknesses were identified in payroll subsidies and other financial commitments. A Cabinet-approved payroll subsidy granted in May 2020 to entities such as Ndilimani Pyrotechnics and Windhoek Maschinenfabrik lacked specification for an end date or renewal conditions. The arrangement continued without review or reapproval, leading to N$105.1 million spent under this setup, of which N$4.9 million was deemed unauthorized, with further funding shortages anticipated.
The audit also raised issues regarding financial transactions and internal controls, revealing that N$4 million was allocated to the Agrotour Development Initiative Project (ADIP) without necessary Cabinet or Treasury authorization, misclassified under an unrelated Cabinet decision.
Moreover, the ministry's annual plans and performance reviews were found unapproved due to missing signatures or official stamps, and executive performance review reports were submitted up to six months late. A discrepancy of N$859.8 million was noted between reported outstanding subsistence and travel advances and the balance in the suspense account.
Kandjeke emphasized the need for improved financial controls, stricter budget management, and enhanced accountability in the management of public funds. Despite the unqualified audit opinion, the findings highlight the necessity of addressing weaknesses in expenditure control, financial reconciliation, and administrative compliance.