Rundu council listed as the ‘worst’ administration

THE parliamentary standing committee on public accounts and economy has described the Rundu Town Council as the worst local authority in terms of administration.

This was said during the public hearing on Thursday, after it was discovered that the council could not account for about N$134 million.

Committee member Harald Kambrude said the Rundu Town Council has been cooking its books after it stated that it had about N$110 million in its bank account, yet there were no such amounts in its accounts and it could not pay debtors, like NamWater, who it owes about N$124 million.

“Those are not errors, I cannot regard these as errors. Maybe I am wrong or I am unfair but you say you have but you do not have, it looks like you are cooking the books,” said Kambrude.

He said he wished the committee was better mandated to call back former CEOs and councillors to explain the discrepancies.

“This is tragic. You are in a tough position, having to explain on other peoples behalf,” Kambrude said to the three management members who attended the hearing.

“Councils also do not properly discipline CEOs when they do not perform,” he noted, adding that it is disastrous that public money cannot be accounted for.

The committee further called on the accounting officers of the Rundu Town Council to provide all supporting documents regarding its expenditure and put an action plan in place to pay back the public funds.

The committee advised that with the auditor general, it will convene an extraordinary council meeting as soon as possible to map out a plan of action.

Financial reports audited by auditor general Junias Kandjeke, show that the financial reporting framework used by the Rundu Town Council does not apply to public interest entities (PIEs) and there was no submission of trade and other supporting documents amounting to N$3,2 million.

The report stated that there was non-submission of supporting documents for VAT provisions amounting to N$46 million and non-submission of expenditure vouchers amounting to N$3,7 million.

Furthermore, there was also unexplained differences in its bank reconciliation amounting to N$45 million as well as an undisclosed bank account named Rundu Urban Community that has become dormant.

According to council officials that were present at the hearing, the signatories to the account are no longer with the council.

In the 2015/2016 financial year, the report indicates an unexplained difference on bank reconciliation of N$42 million, as well as an unexplained difference of N$29,7 million on outstanding debtors.

In addition, there was also a lack of supporting invoices for expenses amounting to N$53 million as well as a lack of supporting documents for land sales, sundry income and the Road Fund Administration contribution income of N$13,7 million.