09.01.2004

A Good Resolution

By: GWEN LISTER

WOULDN'T it be a good idea for government to make a New Year resolution to clean up its act, at least insofar as corruption and irregular and excessive expenditure are concerned? I am absolutely certain this move would be welcomed by the majority of our people, even the most diehard of ruling party stalwarts who believe Government can do no wrong.

ALTHOUGH the most recent report of the Auditor General is pretty

outdated - it applies to the 1999-2000 financial year - it repeats

the litany of complaints of earlier years about irregular and

excessive spending, and in addition there is little to indicate

that Government has cleaned up its act since then.

Among others it revealed that in 1999-2000 the war in the

Democratic Republic of Congo added a massive N$53 million in

unbudgeted expenditure, a considerable sum amount of money that

this columnist, at least, thinks could have been better spent

elsewhere.

 

In total, for that financial year, irregular spending hit N$213

million, and the former Auditor General again repeated his

often-uttered warning that poor budgeting and lack of proper

financial controls needed to be nipped in the bud.

 

With this recurrence year after year, it does show that there is

scant regard in Government ranks for any kind of budgeting at

all.

 

In fact, why bother even to have a Parliament to control and

approve the use of taxpayers' money, if we are not going to stick

to budgets? While certain Ministries were more guilty than others

at exceeding their budgets, even those who are not the main

culprits were fingered by the AG in some cases for even failing to

maintain basic bookkeeping standards.

 

This is scary stuff and it is probably up to the Ministry of

Finance to set some really stringent standards for other Ministries

to stick to and, of course, to apply the same to themselves, since

that key Ministry was partly to blame for delays in reporting as

well.

 

For the redress of this sad situation, we also have to look at

the role of the executive.

 

If one takes the case of the high costs of the war in the DRC,

then it must be said that the decision for Namibia to embroil

itself in that war was one taken by none other than the President

himself, and I guess, in this instance, the Ministry of Defence had

no alternative but to comply.

 

It is also unlikely even to have been consulted on whether to go

to war.

 

Unfortunately the over-expenditures are seldom ascribed to

humanitarian factors.

 

If, for example, the Ministry of Health overspent as a result of

increasing old age pensions, that would be one thing.

 

At least it is a good and justifiable cause.

 

But to say that their overspending stemmed from such factors as

increased travel for the Minister, or payments to deputy Ministers

after a mid-year reshuffle, among others, is not acceptable at

all.

 

The Labour Ministry, among others, failed to keep proper bank

reconciliation statements; the Foreign Ministry had kept N$6

million under 'unknown account' codes; State House kept exceeding

amounts exempted from tender procedures; and so it goes on.

 

It is commendable that incumbent Auditor General Junius Kandjeke

decided to release findings in an attempt to reduce delays in

future.

 

In particular this appeared to be targeted at the Ministry of

Finance which has pretty consistently failed to present its

financial reports within seven months of the fiscal year in

question, as required by law.

 

If accountability were a more revered institution in our

Government, then we could at least make the incumbent Ministers

responsible for these omissions and irregularities, and in fact

this is a position we should move to in order to avoid similar

occurrences in future.

 

This should apply to all Ministers, regardless of their

political standing, and they should lose their posts if they cannot

themselves stick to the letter and spirit of the law.

 

Ideally all Ministries would vow to resolve to be accountable in

future, but in practice I very much doubt that the situation will

change, as indictments such as those in the 1999-2000 Auditor

General's report don't seem to be taken too seriously by the upper

echelons of Government.

 

Among others it revealed that in 1999-2000 the war in the

Democratic Republic of Congo added a massive N$53 million in

unbudgeted expenditure, a considerable sum amount of money that

this columnist, at least, thinks could have been better spent

elsewhere. In total, for that financial year, irregular spending

hit N$213 million, and the former Auditor General again repeated

his often-uttered warning that poor budgeting and lack of proper

financial controls needed to be nipped in the bud. With this

recurrence year after year, it does show that there is scant regard

in Government ranks for any kind of budgeting at all. In fact, why

bother even to have a Parliament to control and approve the use of

taxpayers' money, if we are not going to stick to budgets? While

certain Ministries were more guilty than others at exceeding their

budgets, even those who are not the main culprits were fingered by

the AG in some cases for even failing to maintain basic bookkeeping

standards. This is scary stuff and it is probably up to the

Ministry of Finance to set some really stringent standards for

other Ministries to stick to and, of course, to apply the same to

themselves, since that key Ministry was partly to blame for delays

in reporting as well. For the redress of this sad situation, we

also have to look at the role of the executive. If one takes the

case of the high costs of the war in the DRC, then it must be said

that the decision for Namibia to embroil itself in that war was one

taken by none other than the President himself, and I guess, in

this instance, the Ministry of Defence had no alternative but to

comply. It is also unlikely even to have been consulted on whether

to go to war. Unfortunately the over-expenditures are seldom

ascribed to humanitarian factors. If, for example, the Ministry of

Health overspent as a result of increasing old age pensions, that

would be one thing. At least it is a good and justifiable cause.

But to say that their overspending stemmed from such factors as

increased travel for the Minister, or payments to deputy Ministers

after a mid-year reshuffle, among others, is not acceptable at all.

The Labour Ministry, among others, failed to keep proper bank

reconciliation statements; the Foreign Ministry had kept N$6

million under 'unknown account' codes; State House kept exceeding

amounts exempted from tender procedures; and so it goes on. It is

commendable that incumbent Auditor General Junius Kandjeke decided

to release findings in an attempt to reduce delays in future. In

particular this appeared to be targeted at the Ministry of Finance

which has pretty consistently failed to present its financial

reports within seven months of the fiscal year in question, as

required by law. If accountability were a more revered institution

in our Government, then we could at least make the incumbent

Ministers responsible for these omissions and irregularities, and

in fact this is a position we should move to in order to avoid

similar occurrences in future. This should apply to all Ministers,

regardless of their political standing, and they should lose their

posts if they cannot themselves stick to the letter and spirit of

the law. Ideally all Ministries would vow to resolve to be

accountable in future, but in practice I very much doubt that the

situation will change, as indictments such as those in the

1999-2000 Auditor General's report don't seem to be taken too

seriously by the upper echelons of Government.