Auditor general Junias Kandjeke has exposed widespread financial irregularities and the unauthorised spending of over N$13 million at the health ministry through improper emergency procurement.
Kandjeke revealed this in his audit report on the Ministry of Health and Social Services’ accounts for the financial year ended 31 March 2025.
The report shows that despite listing items in its annual procurement plan, the ministry bypassed standard tender processes.
“Although the ministry had outlined goods and services as part of its planned activities in the procurement plan, the audit discovered that the ministry resorted to using the emergency procurement method for acquiring various goods and services amounting to N$13 221 043.97,” Kandjeke says.
“This procurement approach was used despite the goods and services not meeting the criteria or requirements for an emergency procurement method,” he adds.
In addition to emergency procurement abuses, the audit exposed illegal retrospective payments made to suppliers without required approvals.
The accounting officer incurred N$377 313 during the financial year for goods and services delivered in previous financial years without proper authorisation.
“These financial payments were made without the authorisation or approval required by the act, therefore they are unauthorised,” the auditor general states.
The report also highlights another case of legal non-compliance, adding that an invoice amounting to N$245 844, relating to the 2023/24 financial year, was paid during the 2024/25 financial year without obtaining the required treasury authorisation.
Furthermore, four operational subdivisions were exceeded by N$52 554, and one developmental subdivision was exceeded by N$4.4 million, resulting in unauthorised expenditure under Section 6(a)(iii) of the State Finance Act.
The auditor general flagged significant discrepancies in the ministry’s financial record-keeping, including a negative miscellaneous revenue balance of N$27.6 million.
“The absence of detailled supporting schedules explaining the nature and origin of the negative balance limits transparency and increases the risk of misstatement in the financial statements,” Kandjeke says.
The audit findings further reveal millions paid in fixed overtime to staff members who were on full-time study leave, without evidence that any work was performed.
The audit highlighted outstanding commitments of N$36.7 million that were not submitted for processing before year-end, understating the ministry’s financial statements.
While the ministry left N$352.7 million (3.11%) of its total budget unspent, Kandjeke says this money could have been used for other national priorities.
