ALTHOUGH the financial statements of the Karasburg municipality were up to date and accurate, it recorded a deficit of N$2,1 million, despite having a small surplus of N$148 028, the latest Auditor General’s report states.
The deficit comes from a Government loan and outstanding payments from Karasburg residents of N$3,5 million, some overdue for 247 days, for the financial year ending June 30 2008. The Government loan arrears stood at N$1,1 million.’The recoverability of outstanding (consumer) debts remains a serious concern and is still a major threat to the cash flow of the Karasburg municipality,’ Auditor General Junias Kandjeke wrote in his report, which was tabled in Parliament last week. ”The ability to continue as a going concern depends on the ability of consumers to pay for services rendered and the willingness of Government to write off the (municipality’s) loan arrears as contribution to help solving the problem.’The AG’s Office usually finds a lot to complain about in smaller towns’ financial statements, but Kandjeke this time praised the municipal staff of Karasburg for having their accounts in order ‘and very well presented, despite the fact that a major part of the tasks are still done manually.’
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