Shaningwa wants explanation on Okahandja overspending

20 Apr 2015 14:00pm
WINDHOEK, 20 APR (NAMPA) – Urban and Rural Development Minister, Sophia Shaningwa says she will call for explanations from the Okahandja Municipality for its overspending on internal loans during the 2011/2012 financial year.
Shaningwa said this on Thursday while responding to a question posed by DTA of Namibia Member of Parliament, Elma Dienda in the National Assembly on why N.dollars 3 656 674 was allocated as interest on internal loans during the 2011/2012 financial year.
This was while the Okahandja Municipality only indicated a provision for interest on internal loans to the amount of N.dollars 1 854 460 to the Ministry of Regional and Local Government, Housing and Rural Development.
That ministry is now known as the Ministry of Urban and Rural Development.
Shaningwa explained that internal loans are local authorities' own resources that they use to cross-subsidise social services and also to finance movable assets, which means the loans are not financed from external resources.
She said Section 84 (4) and (5) of the Local Authorities Act (Act no. 23 of 1992), requires the minister to authorise the annual budgets of local authorities, and this is the amount that was submitted by the municipality.
“The difference indicates the variance between the budget estimate and the actual, which indicates that the municipality did not stick to its budget as approved,” Shaningwa stated.
The ministry will definitely request an explanation of this, she said.