Gender ministry paid over N$300 000 for unused warehouse

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has paid N$328 900 for a warehouse that stood empty for 11 months.

This is according to an audited report by auditor general Junias Kandjeke for the financial year ended 31 March 2023.

The warehouse is located in Prosperita, Windhoek.

The report shows that the ministry paid the supplier for the period from April 2022 to February 2023, during which time the warehouse was not utilised. “The audit found that the ministry rented a warehouse for N$29 900 per month. The lease agreement was extended for the warehouse until February 2023,” Kandjeke noted in the report. He said upon inquiry, the auditors were informed that the ministry does not store anything at the warehouse as most of the marginalised activities take place in the regions.

The auditors were also informed that the food bank programme, which the warehouse was used for, was stopped in April 2022. “In addition, upon review of the lease agreement, it was found that there is no termination clause which allows the ministry to terminate the contract should the warehouse no longer be needed,” Kandjeke noted.

“This resulted in fruitless expenditure as the ministry was paying for the warehouse while not utilising it. The ministry paid an amount of N$328 900 to the supplier for the period the warehouse was not utilised.

“It is recommended that the ministry should explain why the lease agreement was not terminated as the warehouse was not utilised until February 2023 and should indicate what measures are in place to avoid fruitless expenditure in the future,” Kandjeke said.

OVERCHARGED

The auditors also found that the ministry was overcharged for the supply and delivery of food items.

Despite the Public Procurement Act 15 of 2025 stating “that an amendment to that contract [that] increases the contract value by more than 15% requires fresh procurement proceedings”. “However, the audit found that the supplier changed the rate tendered for 5kg, 10kg and 1kg of meat delivered. This resulted in overcharging for meat items,” Kandjeke said.

According to him, auditors calculated the overcharging on an annual basis and found that the supplier was paid N$3,6 million for the first year of the contract, commencing in January 2022 and running to December 2022.

“The estimated amount per annum as specified by the tender document is N$2,2 million for the first year of this contract. This is equal to an overpayment of N$1,4 million to the supplier,” said Kandjeke in the report.

“This is more than 15% which requires fresh tender proceedings as per the act.” Kandjeke said the accounting officer should submit proof of the investigation conducted and give feedback on the outcome and if it is indeed overpayment, proof of the recovery of funds should be submitted for audit purposes.

“The accounting officer should also ensure that payments are also avoided in the future,” Kandjeke suggested.

MANAGEMENT COMMENT

In her response to Kandjeke, accounting officer Martha Mbombo said the ministry will investigate the matter and will ensure the amount overcharged is recovered from the supplier. Speaking to The Namibian yesterday, Kandjeke said he will follow up in the next audit regarding what was done.

Mbombo referred The Namibian to the public relations officer. However, no calls were returned.