A Challenge For The New Presidency

By: Editorial Comment

ONCE again the country received the bad news that Government's massive debt continues to soar, forcing the State to increase its borrowing to make ends meet.

The debt was 30,9 per cent of Gross Domestic Product in March this

year, despite a Government target for the national debt not to

exceed 25 per cent of GDP.

In a bid to explain away the rising debt, Finance Minister Saara

Kuugongelwa-Amadhila this week attributed the situation to what she

termed "disappointing" State revenue for the period (some 10 per

cent less than the forecast figure of N$10,8 billion) which in turn

was linked to the strengthening of the South African rand against

the US dollar, which reduced export earnings.

 

The Minister herself admitted that the "slump in revenue was

worse than anticipated and had severe implications for the Budget

deficit".

 

She also indicated that things did not look set to improve by

the end of the financial year.

 

Again the Minister emphasised the need for fiscal discipline to

prevent the country from sliding further into the debt trap, but we

cannot count the number of times in the past that the call for such

discipline has been ignored.

 

There is little indication that Government plans to keep to its

word in the future.

 

In the wake of another landslide victory for Swapo in

poorly-administered elections which cost the country more than N$60

million, the challenge must be posed to incoming President

Hifikepunye Pohamba whether he can make good on promises that the

incumbent has failed to stick to in the past, and bring about a

rosier situation for the country's finances.

 

In light of these revelations it is even astonishing that

Namibians voted overwhelmingly for a continuation of the status quo

given that the country is sliding further and further into the

abyss of debt.

 

Figures revealed by the Finance Minister of the national

Contingency Fund, which has a paltry N$1,9 million remaining for

any emergencies between now and the end of the financial year in

March, also demand further explanation.

 

More than N$60 million (the largest allocation) went towards the

recently held elections.

 

Of this, the Electoral Commission received N$30 million; the

Namibian Police N$20 million; N$8 million to the Defence Force and

N$2,5 million to the NBC.

 

Another figure that catches attention is N$3 million spent on

the DBC-Amcom hearings.

 

Whereas corruption probes are important to undertake in some

form or another, it raises the question as to what the outcome of

this investigation will be, and whether the high cost of it will be

offset by the retrieval of funds misappropriated to this end.

 

The Office of the President received N$1,7 million to cover

expenses related to President Sam Nujoma's exit from office, but

there has been no explanation on how this will be spent.

 

Nor has there been an explanation of the N$4,5 million allocated

to the President's Office for "unforeseen expenses".

 

It would appear that once again different standards apply for

this Office, which one would have hoped would have set an example

in financial responsibility and prudence for other parts of our

cash-starved Government.

 

Ironically, despite glaringly obvious questions such as the

above, which arise from these expenditures, the opposition in

Parliament targeted its questions to the comparatively meagre

amount for the funeral costs of a former Ministry of Works advisor,

Maxton Mutongolume, declared a 'national hero' and given a State

burial after his death.

 

While it nevertheless remains an important question as to who

qualifies for State burials and who are classified as 'heroes',

there are even more burning issues which hopefully opposition

parties will take up with Government.

 

At the end of the day though, our financial position is, once

again, clearly perilous.

 

With its overwhelming victory in the elections, which will

herald another five years of Swapo incumbency, it is surely vital

that the President-elect tells the country what he plans to do

about getting us out of this demise.

 

In a bid to explain away the rising debt, Finance Minister Saara

Kuugongelwa-Amadhila this week attributed the situation to what she

termed "disappointing" State revenue for the period (some 10 per

cent less than the forecast figure of N$10,8 billion) which in turn

was linked to the strengthening of the South African rand against

the US dollar, which reduced export earnings.The Minister herself

admitted that the "slump in revenue was worse than anticipated and

had severe implications for the Budget deficit".She also indicated

that things did not look set to improve by the end of the financial

year.Again the Minister emphasised the need for fiscal discipline

to prevent the country from sliding further into the debt trap, but

we cannot count the number of times in the past that the call for

such discipline has been ignored.There is little indication that

Government plans to keep to its word in the future.In the wake of

another landslide victory for Swapo in poorly-administered

elections which cost the country more than N$60 million, the

challenge must be posed to incoming President Hifikepunye Pohamba

whether he can make good on promises that the incumbent has failed

to stick to in the past, and bring about a rosier situation for the

country's finances.In light of these revelations it is even

astonishing that Namibians voted overwhelmingly for a continuation

of the status quo given that the country is sliding further and

further into the abyss of debt.Figures revealed by the Finance

Minister of the national Contingency Fund, which has a paltry N$1,9

million remaining for any emergencies between now and the end of

the financial year in March, also demand further explanation.More

than N$60 million (the largest allocation) went towards the

recently held elections.Of this, the Electoral Commission received

N$30 million; the Namibian Police N$20 million; N$8 million to the

Defence Force and N$2,5 million to the NBC.Another figure that

catches attention is N$3 million spent on the DBC-Amcom

hearings.Whereas corruption probes are important to undertake in

some form or another, it raises the question as to what the outcome

of this investigation will be, and whether the high cost of it will

be offset by the retrieval of funds misappropriated to this end.The

Office of the President received N$1,7 million to cover expenses

related to President Sam Nujoma's exit from office, but there has

been no explanation on how this will be spent.Nor has there been an

explanation of the N$4,5 million allocated to the President's

Office for "unforeseen expenses".It would appear that once again

different standards apply for this Office, which one would have

hoped would have set an example in financial responsibility and

prudence for other parts of our cash-starved Government.Ironically,

despite glaringly obvious questions such as the above, which arise

from these expenditures, the opposition in Parliament targeted its

questions to the comparatively meagre amount for the funeral costs

of a former Ministry of Works advisor, Maxton Mutongolume, declared

a 'national hero' and given a State burial after his death.While it

nevertheless remains an important question as to who qualifies for

State burials and who are classified as 'heroes', there are even

more burning issues which hopefully opposition parties will take up

with Government.At the end of the day though, our financial

position is, once again, clearly perilous.With its overwhelming

victory in the elections, which will herald another five years of

Swapo incumbency, it is surely vital that the President-elect tells

the country what he plans to do about getting us out of this

demise.

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