Namibia: Land Reform Returns Nearly N$100m to Treasury

The department of agriculture and land reform returned at least N$98 million to the State purse, money which could have been used to address other pressing public needs.

With N$100 million, the government can buy around 10 farms at the average current going rate.

The department resorts under the auspices of the Ministry of Agriculture, Water and Land Reform.

"It was noted that the total budget for the department of agriculture and land reform was underspent with an amount of N$98.3 million (8.04%).

This money could have been utilised for other projects," auditor general Junias Kandjeke says in the department's audit report for the 2021/2022 financial year.

The report was tabled in the National Assembly for further scrutiny this week.

"It is recommended that the accounting officer [executive director Ndiyakupi Nghituwamata] should put measures in place to avoid under-expenditure and ensure that all planned programmes are implemented," Kandjeke added.

He said at the compilation of the report, Nghituwamata "took note of the finding and will ensure that the financial position of the ministry will be monitored and reviewed on a quarterly basis."

The auditors also picked up some unauthorised expenditures at the department.

"Although Treasury approval was obtained to utilise certain expected savings for the defrayal of expenditure through virements during the year, 13 operational subdivisions were exceeded with a total amount of N$4 million which was unauthorised," Kandjeke found.

Over the years, the land question has been a thorn in the government's flesh.

Between 2008 and 2018, the land reform ministry acquired 443 farms, totalling a land mass of 3 021 959 hectares, through the National Resettlement Programme.

In addition to the 443 farms, a further 53 farms were transferred from the Ministry of Agriculture, Water and Forestry for resettlement purposes, taking the tally of farms to 496 during that period.

Up to June 2018, a total of 5 352 beneficiaries were resettled on the 496 farms, with an average of 12 beneficiaries per farm.

No support

The auditors also zeroed in on the directorate's performance, using the government performance management system (PMS), a systematic process for achievement and improvement in obtaining results from a given entity and its staff members.

It is done with an agreed framework consisting of objectives, outputs, key performance indicators (KPIs) and timelines.

The department targeted assisting 73% of resettled farmers with infrastructure and support services. Nothing was done during the period under review to that effect.

"The accounting officer should ensure that the projects are implemented," Kandjeke recommended.

He continued: "The outcome of the audit is not satisfactory as the department has not implemented all planned projects as per the strategic plan and annual plan to ensure that the services' delivery as enshrined in the mandate of the department."

All in all, Kandjeke gave the department an unqualified audit opinion, meaning its financial statements reflected its financial position or were done in accordance with requirements embedded in the State Finance Act.

Missing cars

Last year, Kandjeke also poked holes in the ministry's accounting processes, after finding that the agriculture ministry could account forat least 474 government vehicles.

The vehicles in question included sedans, bakkies, combis, heavy vehicles (lorries, tractors, buses and graders), motorbikes and others (S/Ws, SUVs and trailers).

At the time, New Era reported that during the audit [2020/2021], auditors observed differences in the ministry's balance sheets concerning the number of vehicles under its care.

For example, the report showed that on 31 March 2022, the ministry had 88 sedans. The following day, it is reflected that it had 278 sedans, a discrepancy of 190.

As for bakkies and combis, one report reflected that the ministry had 657 units while another showed 711. The variance is 54.

On the heavy vehicles front, the balance sheet on 31 March 2020 indicated the ministry had 201 but on 1 April 2020 the figured had dropped to 65, resulting in a discrepancy of 136.

The report further indicates the report recorded 77 motorbikes on 31 March 2020 and 46 on 1 April the same year. This means 31 motorbikes could not be accounted for.

Under the category for "others", the ministry initially recorded five vehicles. This figure would jump to 68 on 1 April 2020, according to the balance sheet, resulting in a difference of 63.

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