Namibia: Oshikoto Council N$5.5m Investments Flagged

THE Oshikoto Regional Council received a qualified audit opinion after an auditor-general report could not obtain sufficient evidence to confirm the existence, ownership and valuation of investments worth N$5.5 million.

The finding relates to the council's investments in the Northern Regional Electricity Distributor (Nored) and Central North Regional Electricity Distributor, valued at about N$5.5 million.

According to the auditor general's report for the financial year ended 31 March 2024, the council had incomplete documentation supporting the investments and had not conducted a subsequent valuation of them since their acquisition in 2014.

"This was contrary to the requirements of International Public Sector Accounting Standard 36," says auditor-general Junias Kandjeke in the report tabled in the National Assembly recently.

The council also holds shares in Regional Councils Electricity Company (Pty) Ltd (RCEC), which has a 33% interest in Nored amounting to N$5 million.

RCEC is jointly owned by seven regional councils.

However, the audit found that the absence of a joint venture agreement and company status reports meant the individual shareholding and corresponding value attributable to the Oshikoto region could not be accurately determined.

As a result, Kandjeke says the value of investments in joint ventures disclosed in the financial statements may be misstated.

The report says the council recorded total assets of about N$168.7 million as at 31 March 2024, compared with N$174.9 million the previous year.

Its financial performance also deteriorated, with the council recording a N$6.4 million deficit for the year, compared with a surplus of N$18.8 million in 2023.

The report further found that although the council achieved its performance targets, it did not comply with reporting timelines.

The annual plan review and extended strategic plan review matrix was only submitted on 17 April 2025.

The financial statements were also submitted late to the auditor general on 1 April 2025, despite an extension that had ended on 30 September 2024 under the Regional Councils Act.

Kandjeke, nevertheless, acknowledges the co-operation and assistance provided by the council's management and staff during the audit.

Read the original article on Namibian.