The Ministry of Defence and Veteran Affairs’ N$200-million allocation in the mid-term budget has come under scrutiny, with questions raised over the returns generated by military-owned businesses despite continued government funding.
The allocation comprises N$100 million for rations and N$100 million for utilities.
Speaking to The Namibian recently, Affirmative Repositioning leader Job Amupanda questioned why defence-linked enterprises were not generating meaningful returns on investment, arguing that the government must demand accountability before committing more public money.
Amupanda said entities such as August 26, Machine Fabric and Satcom received funding but had yet to demonstrate sufficient returns.
“We are not getting a return on investment. No one is accounting to us that what is it that August 26 is funding? What is it that Machine Fabric is funding? What is Satcom funding?” he asked.
Amupanda said the mid-term budget should be judged on substantive economic interventions rather than the fanfare surrounding its presentation.
He argued that Shafudah was beginning to focus on structural economic challenges, including the need to address leakages in the Central Medical Stores through improved governance.
However, he criticised president Netumbo Nandi-Ndaitwah for what he described as the centralisation of power, citing the transfer of more than N$170 million from the Ministry of Education, Innovation, Youth, Sport, Arts and Culture to the Presidency for distribution to regional governors to build stadiums.
He also linked the centralisation debate to the proposed petroleum legislation, which he said risks placing too much authority in the Presidency.
Amupanda said his group would study the budget before presenting alternative proposals during the debate.
Prime minister Elijah Ngurare has urged the defence ministry to channel more of its procurement spending towards Namibian businesses, particularly those near military bases.
Speaking during a performance review meeting recently, Ngurare said the ministry should use its substantial budget allocation to support local suppliers of food, agricultural produce and services.
He also called for investment in soldiers’ training and modern military technologies to strengthen the defence force’s capabilities.
Defence minister Frans Kapofi cited budget shortfalls affecting operations, including the veterans’ beneficiation scheme.
Landless People’s Movement (LPM) deputy chief whip Eneas Emvula has questioned the additional N$200 million allocated to the ministry, raising concerns about overspending and accountability in government spending.
Emvula said the allocation raises questions about the government’s public wage bill and the management of public finances, particularly after the ministry allegedly overspent its budget during the current financial year.
“The N$200 million allocation to the Ministry of Defence is very much indicative of how much our public wage bill will increase,” he says.
He questions why accountability had not been enforced following the ministry’s reported overspending, arguing that the minister had not provided a satisfactory explanation after an inquiry into the matter.
“As much as the minister puts effort into what she calls fiscal consolidation, there are a lot of questions that go unanswered about why our economy has performed poorly,” Emvula says.
He also points to weaknesses in government planning and implementation, citing an International Monetary Fund report released in June that, according to him, highlighted challenges affecting the effectiveness of public administration and fiscal discipline.
Emvula’s remarks come as the government seeks to consolidate public finances while making additional allocations to ministries.
