Okakarara Council faces VAT problems

THE Okakarara Town Council failed to pay Value Added Tax (VAT) to the Receiver of Revenue for several years and did not even list payments of consumers for municipal services for two years between July 2003 and June 2005.

It also did not submit any financial statements from June 1999 to June 2003, according to the latest audit report tabled in the National Assembly last week. Auditor General Junias Kandjeke severely criticised the Okakarara Town Council for this negligence, as the municipality ignored repeated written reminders.”The non-submission of those financial statements is seen in a very serious light and is in contempt of existing legislation,” Kandjeke rebuked the Council.”The local authority should indicate what happened to the relevant financial years and why the financial statements cannot be submitted,” he demanded.According to the Local Authorities Act, municipalities must submit their financial statements to the Auditor General three months after the end of the financial year.The municipal officials further failed to produce documentation for leave and bonus payments for staff and failed to provide an inventory list of assets for the two financial years under review.Residents still owed the town council N$5,09 million for municipal services for the financial year ending June 2004 and were in arrears with N$6,61 million a year later.”No provision for bad debts has been made by the town council.The recoverability of outstanding debts is a serious concern and a major threat to the cash flow,” the Auditor General stated.Auditor General Junias Kandjeke severely criticised the Okakarara Town Council for this negligence, as the municipality ignored repeated written reminders.”The non-submission of those financial statements is seen in a very serious light and is in contempt of existing legislation,” Kandjeke rebuked the Council.”The local authority should indicate what happened to the relevant financial years and why the financial statements cannot be submitted,” he demanded.According to the Local Authorities Act, municipalities must submit their financial statements to the Auditor General three months after the end of the financial year.The municipal officials further failed to produce documentation for leave and bonus payments for staff and failed to provide an inventory list of assets for the two financial years under review.Residents still owed the town council N$5,09 million for municipal services for the financial year ending June 2004 and were in arrears with N$6,61 million a year later.”No provision for bad debts has been made by the town council.The recoverability of outstanding debts is a serious concern and a major threat to the cash flow,” the Auditor General stated.