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Thursday, February 24, 2005 - Web posted at 8:15:11 GMT

Mystery money bill flabbergasts MPs

LINDSAY DENTLINGER

IN an unprecedented move, Minister of Finance Saara Kuugongelwa-Amadhila will today table a bill to appropriate additional funds to meet the needs of a single State entity until the end of the financial year ending March 31 2005.

The Namibian was unable to confirm that the move may be linked to the impact the cost of HIV-AIDS drugs is having on the State's medical aid fund.

The Minister's announcement on the bill in the National Assembly yesterday caused widespread confusion among parliamentarians.

Opposition MPs especially looked totally bewildered.

In December, the Finance Minister said there was no money to make additional appropriations during this financial year while the new Budget is only a month off.

Finance Permanent Secretary Calle Schlettwein later told The Namibian that only a single entity would receive additional funding, but declined to elaborate on which entity.

Confusion rapidly gave way to conjecture about what had necessitated the "surprise announcement", and speculation was rife over which department needed money to tide them over until the end of the 2004-05 financial year next month.

Well-placed sources indicated to The Namibian that the most likely recipient is set to be the Finance Ministry itself — to cover the soaring costs incurred by the Public Service Employees Medical Aid Scheme (PSEMAS) for expensive life-prolonging HIV-AIDS drugs.

With an increasing number of members and their dependents now on treatment which Government has pledged to provide for free, the State medical aid is said to be struggling to pay for the costly drugs.

Another view was that the money was to cover Swapo's election campaign, but insiders felt this was unlikely.

Meanwhile, the Minister is said to have already approved the withdrawal of a yet unknown amount from the treasury, through powers accorded to her by the State Finance Act.

According to Schlettwein, the bill would only serve to gain the National Assembly's approval for the appropriation because it is not accounted for in the national Budget.

From the Minister's announcement yesterday many parliamentarians are under the impression that a budget will be tabled today.

Usually the additional budget tabled in the last quarter of the year, is brought to the House by way of an additional appropriation bill.

Caught off guard by Kuugongelwa-Amadhila's notice of motion, the Congress of Democrats' Nora Schimming-Chase asked for clarity on the move, but Speaker Mose Tjitendero said this would have to wait until today.

He did however say that political parties would have to meet outside the House to discuss a timetable for discussing and finalising the Additional Appropriation Bill before the sitting ends in four weeks, further perpetuating the understanding that the House would be confronted with a budget.

In December, Kuugongelwa-Amadhila said Government was cash-strapped and could not allocate extra money from the treasury during this financial year.

For the first time since Independence, no additional budget was tabled.

Government found itself in a pickle, with less than forecast revenue which it put down to the strengthening of the rand against the dollar, and its effects on exports from major sectors such as fishing and mining.

Instead Kuugongelwa-Amadhila made appropriations from the country's contingency fund to the tune of N$148 million - leaving only around N$2 million for emergencies until the end of the current financial year.

The largest appropriation (N$60 million) went towards covering the costs of last year's elections.

A further N$52,5 million was advanced to speed up the building of the new State House.

Funds were also also allocated for malaria prevention, purchasing agricultural land for the National Youth Scheme, industrialisation projects of the Ministry of Trade, flood relief in the Caprivi, political parties and the DBC-Amcom Presidential hearing.

The national Budget for the 2005-2006 financial year will only be tabled in April - a month later than is customary - once the new parliament is sworn in.

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