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Former President Nujoma’s Office overspent by millions

Former President Nujoma’s Office overspent by millions

THE office of former President Sam Nujoma, a vocal advocate of prudent financial management on public platforms, overspent its budget by more than N$3,6 million.

A total of N$1,1 million in outstanding subsistence and travel (S&T) allowances, numerous instances of untaxed overtime payments, and N$2,5 million exceeded on transport are just some of the revelations in a just-released audit report by the Auditor General. The report reveals that 72 cases of outstanding S&Ts were left at the end of the 2004-2005 financial year, a number that had increased from 62 the previous year.In that year, the amount of outstanding S&Ts had amounted to N$963 374, although it was wrongly reflected in the Accounting Officer’s general ledger as N$875 708.”The increase in outstanding advances indicates the office’s poor control over S&T and failure to comply with Treasury instructions to ensure timely recovery of S&T advances,” the report noted.Discrepancies were also found in the paying of overtime claims, with no tax being deducted in several instances.In a number of cases where tax was deducted, the report found that the wrong tax rate had been used, and generally one that was lower than the correct rate.This, it noted, led not only to overpayment of employees, but more importantly to a loss of tax revenue for Government.Another contributing factor to the overspending was a lack of control over its telephone account.Telecom was owed a total amount of N$700 000, which the Auditor General said could be lowered through a proper control system.”The control over private telephone calls in the Office is either very poor or non-existent.The Office issued only ten receipts with a total amount of N$75,75 in respect of private telephone calls throughout the … year.The Accounting Officer should put a control system in place ensuring complete recovery of all private telephone calls made by staff members.Officials should know that they are responsible for their telephone expenses and if they don’t pay, deductions should be made from their salaries,” the report states.The Auditor General also noticed a steep increase in trips undertaken per presidential aircraft, either for Nujoma himself, or for support staff as the end of their term drew nearer.This caused unbudgeted spending of N$2 578 730,27.The office lost N$12,4 million in respect of staff debts that had to be written off because the employees had died or retired.The report reveals that 72 cases of outstanding S&Ts were left at the end of the 2004-2005 financial year, a number that had increased from 62 the previous year.In that year, the amount of outstanding S&Ts had amounted to N$963 374, although it was wrongly reflected in the Accounting Officer’s general ledger as N$875 708.”The increase in outstanding advances indicates the office’s poor control over S&T and failure to comply with Treasury instructions to ensure timely recovery of S&T advances,” the report noted.Discrepancies were also found in the paying of overtime claims, with no tax being deducted in several instances.In a number of cases where tax was deducted, the report found that the wrong tax rate had been used, and generally one that was lower than the correct rate.This, it noted, led not only to overpayment of employees, but more importantly to a loss of tax revenue for Government.Another contributing factor to the overspending was a lack of control over its telephone account.Telecom was owed a total amount of N$700 000, which the Auditor General said could be lowered through a proper control system.”The control over private telephone calls in the Office is either very poor or non-existent.The Office issued only ten receipts with a total amount of N$75,75 in respect of private telephone calls throughout the … year.The Accounting Officer should put a control system in place ensuring complete recovery of all private telephone calls made by staff members.Officials should know that they are responsible for their telephone expenses and if they don’t pay, deductions should be made from their salaries,” the report states.The Auditor General also noticed a steep increase in trips undertaken per presidential aircraft, either for Nujoma himself, or for support staff as the end of their term drew nearer.This caused unbudgeted spending of N$2 578 730,27.The office lost N$12,4 million in respect of staff debts that had to be written off because the employees had died or retired.

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