The City of Windhoek overspent nearly N$20 million on employee salaries in 2024 after implementing pay increases above government-approved limits, the auditor general has found.
The audit report found that employee costs were overstated by N$19.9 million in 2024 because the municipality implemented a 5% salary increase negotiated with the Namibia Public Workers Union, despite ministerial approval being limited to 3%.
The issue was also identified in previous years, with employee expenses overstated by N$72.2 million in 2023 and N$24.1 million in 2022.
“The employee costs incurred are overstated by N$19.8 million, N$72 million and N$24 million for 2024, 2023 and 2022 respectively,” auditor general Junias Kandjeke says.
Kandjeke says they could not satisfy themselves that the expenditure was properly incurred because the salary adjustments exceeded approved limits.
The report also states there are weaknesses in the municipality’s information technology systems, warning that possible financial impacts could not be determined.
According to the audit, deleted client transaction histories and related account balances were identified, but no forensic investigation was conducted to determine the extent of the problem.
Instead, a review uncovered discrepancies between the municipality’s archive and solaris systems, including delayed transaction postings and missing receipts in the cash drawer system.
The auditor general identified outdated security policies, weak password controls, inadequate user-access management and the absence of proper audit trails as among the root causes.
“The auditors could not ascertain the impact of the data manipulation on the 2023 and 2024 financial statements,” the report says.
As a result, auditors were unable to determine whether adjustments were required to financial statements covering assets, revenue, expenditure and cash flows.
The municipality was also unable to provide a complete reconciliation of land under its control.
Auditors say management failed to produce records detailing the total land area under the municipality’s jurisdiction and how land had been allocated across different categories and uses.
This meant auditors could not verify the accuracy and completeness of land recorded as property, investment property and inventory.
The findings were among several issues identified in the audit report that remain unresolved from previous financial years, raising concerns about governance, financial controls and record keeping within the municipality.
Questions were sent to the City of Windhoek on Monday, however, a response was not received by the time of going to print.
