Government will not default on salaries

26 Jan 2017 18:50pm
WINDHOEK, 26 JAN (NAMPA) – Minister of Finance, Calle Schlettwein has rubbished the notion that Government cannot pay the salaries of civil servants, as there is apparently no money in the government coffers.
“The notion that we are unable to pay salaries for public services is a wrong notion. We have maintained that ability to pay the public services salaries and we will not default any payment,” he assured the nation.
Schlettwein was speaking at a media conference on Thursday on the state of the country’s economy.
In recent media reports regarding the notion, it was indicated that some service providers or State Owned Enterprises such as Government lawyers, Namibia Tourism Board (NTB) and National Youth Service (NYS), were not paid in time because Government ran out of money.
“This is disturbing, because the government continues to honour its obligations. There was no system malfunctioning at the Ministry which prevented the remuneration payment for any government Ministries, Offices, Agencies,” he fumed.
The payment requests for Government lawyers submitted to Treasury was paid in full, while NYS)employees were paid on 25 January, despite the administrative glitches experienced, which have to do with their own administrative arrangements and not Government payment systems, the minister explained.
Schlettwein said the NTB, which does not depend on Government for their operational budget, overcame internal administrative glitches and paid their employees on Wednesday.
“We do not have technical problems in our payment system and the payment of salaries enjoys priority and in no instance has the government lost its ability to meet salary payment obligations for its employees,” he stated.
Schlettwein said monthly spending is aligned to cash flow conditions and in this regard, a Treasury Authorisation Warrant (TAW) is used as a tool to ensure that monthly expenditure for ministries is aligned to the available income.
The TAW approved for November and December 2016, amounted to N.dollars 8.2 billion, whilst the actual payments made by Government totalled N.dollars 10.1 billion.
“This means, we have even increasingly honoured some of the outstanding obligations which are duly budgeted for in the current revised budget,” he stated.