Lack of financial reports raises temperature in NA

A HEATED exchange took place between Finance Minister Saara Kuugongelwa-Amadhila and the DTA’s Johan de Waal in the National Assembly on Thursday over Government’s loss-making airline Air Namibia and its flagship hotel, the Windhoek Country Club and Resort.

De Waal was most unhappy that the Minister could not provide the 2005 financial statements of either of the two enterprises, but was expecting Parliament to approve channelling millions more dollars their way. Kuugongelwa-Amadhila told De Waal that she had seen draft versions of these documents but they could not be tabled in Parliament until the boards of these companies had signed off on them.Air Namibia is expected to receive another N$156 million through the 2006-07 budget, while the Windhoek Country Club owes Government more than N$100 million for a guarantee it was granted, and the debt continues to grow.According to the financial statements for the Windhoek Country Club provided in the budget document, the WCC suffered losses of N$31 million in 2003 and a further N$46 million in 2004.While Air Namibia appeared to have turned around its misfortune in 2003 and 2004 by posting profits of N$81 million in 2003 and N$399 million in 2004, by the end of last year, Government was forced to stand guarantee for loans of N$86 million from commercial banks and a further N$429,2 million for the lease of aircraft.Over and above this, Air Namibia will continue to receive millions more from Government in the next two financial years.De Waal had also requested the Finance Minister to provide the management reports from auditors to the two companies.However, Kuugongelwa-Amadhila said she could not make these public.”The findings and recommendations of these reports guide the management of the company in improving its systems and procedures.The report forms part of the dialogue between the auditing firm and the management of the company.For these reasons, such reports are not meant for public perusal,” said Kuugongelwa-Amadhila.Instead, Kuugongelwa-Amadhila said she would be happy to share strategic management issues of SOEs with the House.The Finance Minister said she expected the board and management of the Windhoek Country Club to have a business plan that would outline its turnaround strategy but did not know for sure whether such a document existed.Kuugongelwa-Amadhila was unhappy with De Waal’s attack, and said she found it inappropriate that he was “scolding” her.As the chairperson of the parliamentary Public Accounts committee, she said he too was responsible for exercising oversight over the finances of SOEs.She said he should wait until the SOE Governance Council was in place and then these business plans could be made available to MPs.De Waal said it was unacceptable that companies like Air Namibia flouted regulations that required financial statements to be produced within six months of the end of a financial year.”How can there still not be one and nobody’s doing anything? We are asked to give millions but they don’t even have financial statements.That’s unacceptable!” De Waal continued.Kuugongelwa-Amadhila said both her Ministry and Air Namibia’s management were working at getting the job done.Kuugongelwa-Amadhila told De Waal that she had seen draft versions of these documents but they could not be tabled in Parliament until the boards of these companies had signed off on them.Air Namibia is expected to receive another N$156 million through the 2006-07 budget, while the Windhoek Country Club owes Government more than N$100 million for a guarantee it was granted, and the debt continues to grow.According to the financial statements for the Windhoek Country Club provided in the budget document, the WCC suffered losses of N$31 million in 2003 and a further N$46 million in 2004.While Air Namibia appeared to have turned around its misfortune in 2003 and 2004 by posting profits of N$81 million in 2003 and N$399 million in 2004, by the end of last year, Government was forced to stand guarantee for loans of N$86 million from commercial banks and a further N$429,2 million for the lease of aircraft.Over and above this, Air Namibia will continue to receive millions more from Government in the next two financial years.De Waal had also requested the Finance Minister to provide the management reports from auditors to the two companies.However, Kuugongelwa-Amadhila said she could not make these public.”The findings and recommendations of these reports guide the management of the company in improving its systems and procedures.The report forms part of the dialogue between the auditing firm and the management of the company.For these reasons, such reports are not meant for public perusal,” said Kuugongelwa-Amadhila.Instead, Kuugongelwa-Amadhila said she would be happy to share strategic management issues of SOEs with the House.The Finance Minister said she expected the board and management of the Windhoek Country Club to have a business plan that would outline its turnaround strategy but did not know for sure whether such a document existed.Kuugongelwa-Amadhila was unhappy with De Waal’s attack, and said she found it inappropriate that he was “scolding” her.As the chairperson of the parliamentary Public Accounts committee, she said he too was responsible for exercising oversight over the finances of SOEs.She said he should wait until the SOE Governance Council was in place and then these business plans could be made available to MPs.De Waal said it was unacceptable that companies like Air Namibia flouted regulations that required financial statements to be produced within six months of the end of a financial year.”How can there still not be one and nobody’s doing anything? We are asked to give millions but they don’t even have financial statements.That’s unacceptable!” De Waal continued.Kuugongelwa-Amadhila said both her Ministry and Air Namibia’s management were working at getting the job done.