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The Okongo Village Council is owed N$1.1 million by 15 residents, after granting loans through the Build Together Project (BTP), an auditor general’s report for the financial year ended 30 June 2024 shows. Auditor general Junias Kandjeke said the loan agreements were signed on 24 August 2023, but repayments have not yet begun. This is despite the contracts stipulating that loan repayments were to begin on 1 March 2024 and be settled over a 20-year period, he said. “This raises concerns about the effectiveness of the BTP loan committee in implementing and managing the programme,” he said. During the audit, Kandjeke said the village council reported a BTP loan advance of over N$1 million in its statement of financial position. However, the related interest income of N$58 290, which was received in the council’s bank account, was not disclosed in the statement of financial performance, resulting in an understatement of revenue, he said. Kandjeke said the council also did not disclose BTP funds of N$1.1 million, received from the Ministry of Urban and Rural Development, in the statement of financial performance. “This omission also contributed to the understatement of income for the financial year under review,” Kandjeke said. The audit report also found that goods and services valued at N$46 615 were procured in contravention of the Public Procurement Act, 2015 (Act 15 of 2015), as no procurement motivations or contracts were provided. Only receipts attached to the general expense forms were attached as supporting documentations, the report reveals. Kandjeke said the council entered into a contract with a supplier, however, the audit found that after the contract had expired, the council continued making payments amounting to N$244 908 to the supplier. The audit found no attachment or contract extension letter for the aforementioned supplier, he added. Kandjeke said the audit found that some employees worked over five hours of continuous overtime without a meal break, which violates Section 18(1) of the Labour Act (Act No.11 of 2007). This, he said, resulted in N$1 616.24 in overtime overpayments. Kandjeke said part C of Section 18(1) of Labour Act states: “An employer must give an employee who works continuously for more than five hours, a meal interval of at least one hour.” The report also found that when council employees (who are not eligible for car allowance) travelled for official business, they claimed transport fares without presenting any supporting documentation. Therefore, the audit could not verify the correctness of the transport fares claimed and paid, Kandjeke said.
