Ondangwa:The Ondangwa Town Council in the Oshana Region has received an adverse audit opinion from Auditor-General Junias Etuna Kandjeke for the financial year ending 30 June 2025.
According to Namibia Press Agency, the audit report, which was recently submitted to Parliament, uncovered numerous financial irregularities, including non-compliance with accounting standards and ministerial directives. It also highlighted unauthorised expenditure on executive remuneration and travel allowances.
The report, signed in Windhoek in July 2026, concluded that the council's financial statements did not accurately reflect its financial position in line with International Public Sector Accounting Standards (IPSAS). One of the key findings was the council's decision to increase the salary of its Chief Executive Officer, Ismael Namgongo, without obtaining the necessary ministerial approval.
The council's expenditure included N$1.9 million on local travel and subsistence allowances, which was contrary to ministerial directives. Auditor-General Kandjeke also pointed out issues in the council's accounting treatment of its investment in the Northern Regional Electricity Distributor (NORED), where an asset valued at N$76.2 million was incorrectly recognized despite only holding 15 shares in the Local Authority Electrical Company (LAEC).
The report indicated a breach of financial asset measurement requirements for the second consecutive year. Additionally, concerns were raised over financial adjustments that lacked adequate disclosure or justification, such as the transfer of N$2.3 million from the council's Build Together Revolving Fund reserves to its accumulated surplus without necessary disclosures.
The council restated its previous financial statements by N$7.2 million under a category labeled as a 'fair value adjustment' without providing sufficient justification. Furthermore, auditors were unable to verify 37 of the council's 51 key performance indicators due to the absence of necessary supporting documentation from management.
The council failed to supply legal documentation related to final court judgments on severance pay claims by former employees, hindering auditors from assessing potential liabilities adequately. Kandjeke also noted weaknesses in the council's internal control systems, including unsigned performance agreements for senior management, affecting both Namgongo and Senior Manager of Finance Malakia Lihongeni.
Despite reporting a surplus of N$6.2 million for the financial year under review, the audit highlighted significant weaknesses in financial reporting, internal controls, and compliance with ministerial directives, underlining deficiencies in the council's financial management and accountability.