Windhoek:Minister of Urban and Rural Development, James Sankwasa, has defended his ministry's budget management practices following claims that funds intended for local authorities were unlawfully withheld or diverted. Sankwasa insists that the ministry operates within legal parameters.

According to Namibia Press Agency , Sankwasa addressed these concerns during a session of the National Assembly, responding to queries from Independent Patriots for Change parliamentarian Armas Amukoto. Amukoto raised questions regarding the legal basis for any reduction or diversion of funds approved by Parliament and sanctioned by the President under the Appropriation Act.

Sankwasa explained that the ministry’s cash-flow management and expenditure controls are responsibilities managed legally by the Treasury under the State Finance Act of 1991. He emphasized that these measures are not intended to undermine Parliament's authority and clarified that the ministry does not alter laws established by Parliament. The Ministry of Finance, through the Treasury, legally manages the release and cash flow of funds based on state revenue.

Sankwasa further elaborated that while the ministry can request reallocations within the same budget, any reduction or diversion of approved funds is strictly an administrative function of the finance ministry. He affirmed that the Executive, via the Treasury, is constitutionally and legally mandated to responsibly implement the Act, considering revenue performance, national cash availability, and fiscal sustainability.

Responding to concerns about accountability for service delivery failures due to funding shortfalls at local authorities, Sankwasa stated that service delivery is a collective responsibility. He acknowledged that budget constraints might delay timelines but stressed that accountability lies with accounting officers at all levels.