Windhoek:Auditor General Junias Kandjeke has issued a qualified audit opinion on the Government of Namibia's financial statements for the year ending 31 March 2025, highlighting revenue allocation issues and discrepancies in reported fund balances.

According to Namibia Press Agency, Kandjeke's report, presented to the National Assembly last week, indicates that the qualified opinion stems from identified concerns during the audit, particularly regarding revenue treatment and balance reliability.

The audit uncovered that the Customs Receipt Suspense and Inland Revenue Department Receipt Suspense accounts had credit balances of N$29.26 million and N$599.09 million, respectively. These balances suggested improper allocation of collected revenue, leading to understated revenue in the financial statements.

Additionally, a discrepancy was found between the State Revenue Fund's closing balance of N$5.26 billion and the N$5.90 billion reported in the statement of fund balances, resulting in a N$641.68 million variance, raising questions about financial statement accuracy.

Kandjeke also pointed out several financial management shortcomings, including unauthorized expenditure by a ministry exceeding its budget and under-expenditure totaling N$1.23 billion across 14 government entities.

Concerns were raised about revenue accountability, as revenue statements from the Namibia Revenue Agency were submitted to the Auditor General's Office without formal review or approval by the Ministry of Finance's accounting officer, weakening oversight.

The report underscores the need for the government to implement International Public Sector Accounting Standards and accrual-based accounting to enhance financial reporting and accurately reflect assets and liabilities.