THE Eenhana Town Council has been ordered to account for millions of dollars in interest charged to residents and repay those who were overcharged.
The National Assembly standing committee on public accounts (PAC) has called on the council to verify residents’ accounts and ensure that wrongly charged amounts are returned through credits.
The demand follows discrepancies identified in the auditor general’s 2023 report on the council’s financial affairs, which came under scrutiny during a PAC public hearing at Eenhana on Wednesday.
According to the audit findings, the council recorded more than N$3.32 million in interest charged on outstanding residents’ accounts, while the expected interest amounted to N$493 995 – a difference of about N$2.8 million.
The discrepancy has prompted parliamentarians to demand an explanation and clarity on whether residents had been overcharged.
Eenhana chief executive Wodibo Haulofu says residents found to have been incorrectly charged will receive credits on their accounts.
“We do not pay back in cash, but we credit the account if we find there was a wrong bill,” he says.
Haulofu says the council’s losses, which previously stood at about N$4 million, had declined and now average between N$400 000, which he attributed to efforts to bring its books up to date.
PAC committee member Michael Mwashindange has expressed disappointment over the council’s failure to consistently submit financial statements.
“Even if you get a disclaimer, it’s fine. You can improve on it.
But not submitting statements is disrespectful and an insult to the nation.
“Giving excuses because you failed to comply is not acceptable. You must comply,” he says.
Committee member Sharonice Busch told The Namibian on Friday that the disclaimer issued to the town council was the worst audit opinion it could receive.
Busch said the disclaimer meant the auditor general could not obtain sufficient evidence to form an opinion on the council’s financial statements, making it difficult to determine its accurate financial position.
She said Eenhana’s problems reflected a wider challenge among local and regional authorities to comply with International Public Sector Accounting Standards (Ipsas).
“We must look at why the majority of local authorities and regional councils are unable to comply with Ipsas,” she said.
Busch said recurring audit findings, including issues involving land boundaries, dumpsters and required discharges, pointed to wider governance problems.
“So far only the Ohangwena Regional Council has a clean opinion, everyone else is in the red,” she said.
Meanwhile, committee member Inna Hengari raises concerns over what she describes as shocking conditions at the council’s waste disposal facilities.
According to the 2023 audit report, the council was operating a dumpsite without a valid environmental clearance certificate (ECC).
The certificate provided to auditors had expired on 29 March 2019.
Hengari says auditors who visited the site found it full to capacity, with a dilapidated fence, destroyed gate and garbage scattered outside the designated dumping area.
The dumpsite is located close to residential areas and the airstrip, raising health concerns.
Hengari says the condition of the dumpsite had also contributed to an increase in flies around the town.
The audit further found that the council was operating a borrow pit without an ECC and without fencing.
Hengari says the Environmental Management Act requires clearance certificates for certain activities and provides for severe penalties for contraventions.
“When we asked the chief executive whether he was aware of this, his response was: ‘We did what we had to do,’” she says.
“Public hearings are not intended to embarrass anyone. However, we take issue with the blatant disregard for the law at both local and regional government levels,” she says.
