Don’t go to the bank for a loan, go to Govt: CoD MP

GOVERNMENT’S failure to recover debt has been highlighted as the most disconcerting issue to emerge from a review by the Parliamentary Public Accounts Committee of Government Accounts for 1999.

Presenting the findings of their investigations into the audited accounts of Ministries and other State institutions to the National Assembly on Wednesday, the Committee’s Chairman, Johan de Waal, said the State’s failure to recover money owed to it was worrying. “Government is losing huge amounts of money every year due to Ministries, offices and departments not collecting monies owed to the State,” he told the House.”It is serious because during the hearings it became quite clear that this problem is still continuing as we speak,” he said.De Waal said it was frustrating to note that despite the Auditor General’s repeated attempts to address the problem, State departments had failed to respond.Advances to staff for travel and subsistence make up the bulk of the debt.The Committee is currently reviewing the audit reports for both 2000 and 2001, and says if it emerged that the trend was persisting, it would have to insist that Section 11 of the State Finance Act of 1991 be implemented.The section deals with loss or damage incurred to the State by a civil servant and stipulates that the person repay the amount owed within 30 days.The Committee has castigated Permanent Secretaries for their lack of debt control, a situation De Waal said appeared to have become a trend.On this point he gained support from Congress of Democrats whip Nora Schimming-Chase, who was first to respond to the findings.She maintained that the millions owed to the State could have better put to better use in the areas of health and education.”If this had happened in the private sector, none of the CEOs would have held their jobs,” she said.”Let the millions that have gone astray come back so that we can use the money to increase old age pensions; so that we can buy new machines; so that cancer patients can get treatment; so that we can build new schools so that our youth can study.”Schimming-Chase also raised the issue of lax controls and the need to ensure that loans granted to employees by the State were repaid.”Don’t go to a bank, go to Government because a bank you have to repay, Government you don’t,” said a very irate Schimming-Chase.Reacting to these remarks, ruling party parliamentarians said she was getting too heated about the matter.Fisheries and Marine Resources Minister Abraham Iyambo charged that they were discussing “archaic things” and that opposition members were using faults highlighted in the 1999 reports as an electioneering tool.”Now we are being told of things of 1999.Now, after so many years we are given these reports.We could have rectified these things long ago.Now it’s too late,” he interjected.Concluding the debate for the day, Finance Minister Saara Kuugongelwa-Amadhila said her Ministry could not be blamed for persistent over-expenditure and poor financial management by State departments.She said efforts were being made to curb over-expenditure – which reached N$159 million in 1999, up from N$139 million the previous year.Kuugongelwa-Amadhila said each individual Ministry was responsible for keeping their house in order so that regular audits could be carried out.”Accounting officers of Ministries also have their responsibilities.I don’t think it is appropriate to put that at the door of the Ministry.I expect accounting officers to live within the budgets given to them,” she said.The debate is set to continue on Thursday.”Government is losing huge amounts of money every year due to Ministries, offices and departments not collecting monies owed to the State,” he told the House.”It is serious because during the hearings it became quite clear that this problem is still continuing as we speak,” he said.De Waal said it was frustrating to note that despite the Auditor General’s repeated attempts to address the problem, State departments had failed to respond.Advances to staff for travel and subsistence make up the bulk of the debt.The Committee is currently reviewing the audit reports for both 2000 and 2001, and says if it emerged that the trend was persisting, it would have to insist that Section 11 of the State Finance Act of 1991 be implemented.The section deals with loss or damage incurred to the State by a civil servant and stipulates that the person repay the amount owed within 30 days.The Committee has castigated Permanent Secretaries for their lack of debt control, a situation De Waal said appeared to have become a trend.On this point he gained support from Congress of Democrats whip Nora Schimming-Chase, who was first to respond to the findings.She maintained that the millions owed to the State could have better put to better use in the areas of health and education.”If this had happened in the private sector, none of the CEOs would have held their jobs,” she said.”Let the millions that have gone astray come back so that we can use the money to increase old age pensions; so that we can buy new machines; so that cancer patients can get treatment; so that we can build new schools so that our youth can study.”Schimming-Chase also raised the issue of lax controls and the need to ensure that loans granted to employees by the State were repaid.”Don’t go to a bank, go to Government because a bank you have to repay, Government you don’t,” said a very irate Schimming-Chase.Reacting to these remarks, ruling party parliamentarians said she was getting too heated about the matter.Fisheries and Marine Resources Minister Abraham Iyambo charged that they were discussing “archaic things” and that opposition members were using faults highlighted in the 1999 reports as an electioneering tool.”Now we are being told of things of 1999.Now, after so many years we are given these reports.We could have rectified these things long ago.Now it’s too late,” he interjected.Concluding the debate for the day, Finance Minister Saara Kuugongelwa-Amadhila said her Ministry could not be blamed for persistent over-expenditure and poor financial management by State departments.She said efforts were being made to curb over-expenditure – which reached N$159 million in 1999, up from N$139 million the previous year.Kuugongelwa-Amadhila said each individual Ministry was responsible for keeping their house in order so that regular audits could be carried out.”Accounting officers of Ministries also have their responsibilities.I don’t think it is appropriate to put that at the door of the Ministry.I expect accounting officers to live within the budgets given to them,” she said.The debate is set to continue on Thursday.