Windhoek — DIFFICULTIES with a computerised payment system for thousands of soldiers at the Defence Ministry and a lack of funds are making smooth operations difficult, a Parliamentary hearing was told on Thursday.

"Ranks in the Defence Force and according salary notches are different from the salary system in other ministries," its Permanent Secretary Peter Shivute told the Parliamentary Standing Committee on Public Accounts when queried about total over-expenditure of N$39 million for the 2005-2006 financial year.

It was thus difficult to adjust the military promotions to the computerised integrated financial management system (IFMS) introduced about two years ago.

Johan De Waal, who chairs the Committee, advised Shivute to sort out such technical problems with the Finance Ministry.

Shivute further said that despite requests to increase the defence budget, Cabinet often set ceilings for expenditure below requirements and costs, so overspending was inevitable.

The Ministry was allocated N$1,22 billion that year.

"About 70 per cent of our budget goes to salaries," Shivute said.

"We try to budget for things we know but if fuel and food prices, electricity and water expenditure shoot up higher than a reasonable estimate during a budgetary year and foreign exchange rates change negatively, it derails the whole budget.

"If a sudden peace mission comes up for the United Nations (UN) and NDF members must be sent there, our Ministry must advance the costs.

We finally have an arrangement in place with the Finance Ministry to help us bridge those gaps until the UN reimburses us," Shivute added.

The committee also questioned outstanding subsistence and travel allowances of N$867 628 and outstanding debts of N$657 720 for accidents occurred by NDF troops and ministerial officials.

The Permanent Secretary replied that stricter controls had been enforced in the meantime and the recovery of subsistence advances had improved in the next financial year which ended in March 2007.

"We implemented a system that those in the Ministry found guilty of causing an accident with official vehicles, the (repair) costs must be recovered and they are deducted from the salaries and it does not matter if it takes up to ten years until repayment is complete," Shivute told the committee.

The Ministry of Defence will from April this year receive a large allocation of N$2,4 billion, nearly eleven per cent of the National Budget.

In the financial year which ended last month, its allocation was N$1,7 billion.