An internal audit has uncovered widespread financial mismanagement, alleged embezzlement, and severe administrative failures within the Oniipa Town Council between 2021 and 2024.
The investigation was done by the Ministry of Urban and Rural Development’s internal audit division, led by deputy director of internal audits Martin Ngubai.
It found widespread weaknesses in the council’s internal controls and financial management between 2021 and 2024.
At the centre of the findings is a cash deposit shortage of more than N$568 000 that was unaccounted for during the 2022/23 financial year alone.
According to the investigators, former council cashier David Simataa allegedly acted alone in embezzling council funds.
The report alleges that Simataa skipped banking days, split deposit slips across different days, and retained keys to the council’s strong room without adequate oversight.
“The former cashier, Mr Simataa, was responsible for the safe custody of cash, filling in the deposit slip, keeping the key to the strong room and eventually handing over the cash allocated to the cash-in-transit security company that was responsible for banking,” the report reads.
“In some instances, the former cashier deposited cash in person and at times consulted the security company to delay the collection of cash, which is a situation which may have been as a result of collusion between Mr Simataa and the security company,” part of the report reads.
The report further suggests that Simataa would skip some days without depositing the cash collected for the previous day.
A criminal case was opened in connection with the alleged embezzlement.
The investigators further recommended that law enforcement consider attaching Simataa’s assets, including a bakery at Oniipa, and machinery allegedly purchased with the stolen funds, as part of efforts to recover the money.
The audit also pointed to significant supervisory failures within the council’s finance department. According to the report, manager of finance, human resources and administration, Taimi Lungameni and accountant Selma Namgongo have failed to conduct mandatory daily cash verifications and regular bank reconciliations.
The investigators found that daily cash-up forms totalling N$607 670 were processed without the required superviser signatures or verification. An undeclared cash surplus of N$2 000 was also discovered.
The investigation uncovered further irregularities involving payments to eight contractual general labourers.
Their employment contracts specified rates of N$8.50 and N$14.50 per metre. However, according to the report, finance officials applied unauthorised rates of up to N$170 per metre.
The irregular rates resulted in an alleged overpayment of N$104 800, increasing the total payments from the contractual amount of N$54 000 to N$159 000.
The report states that payment vouchers for the inflated amounts were processed and paid on 1 July 2024, before authorisation had been obtained from the chief executive officer.
The auditors further accused finance management of insubordination, alleging that officials ignored a direct instruction from the chief executive to place the payments on hold while discrepancies in the rate calculations were being investigated.
The investigation also raised concerns about the handling of government relief funds.
On 21 December 2023, the government deposited N$1.1 million into the council’s bank account to fund water supplies for vulnerable groups, pensioners and unemployed residents during the Covid-19 pandemic.
According to the report, council officials failed to inform the council of the arrival of the funds.
Instead of compiling and verifying an official list of beneficiaries, officials allegedly credited N$161 400 to customer accounts that were not on the ministry-approved list.
The report also found that customer accounts worth N$19 300 were double-receipted, while some pensioners and unemployed residents who qualified for assistance were excluded.
The investigators attribute many of the council’s administrative and financial problems to a “leadership vacuum” following a series of senior staff resignations during 2022 and 2023.
Among those who left were former chief executive officer (CEO) Junias Jacob, former manager of finance Vistoline Kambonde, former human resources officer Malakia Kapembe, and former acting CEO Wycliffe Kambonde.
To address the weaknesses, the internal audit team recommends several reforms.
These include installing closed-circuit television cameras at cash collection points, restricting access to the strong room and its keys, conducting weekly bank reconciliations, and introducing automated bank notification alerts for all council transactions.
Oniipa’s chief executive Heikky Amwele this week referred The Namibian to the police when asked about the money Simataa allegedly stole.
He further claimed the investigators’ recommendations have been adhered to.
Oshikoto police head of criminal investigations deputy commissioner Titus Ekandjo yesterday referred The Namibian to national spokesperson deputy commissioner Kauna Shikwambi. Shikwambi yesterday said the matter is before the courts and Simataa has been released on bail.
