21 Nov 2013 19:10pm
WINDHOEK, 21 NOV (NAMPA) - The Auditor-General (AG)'s report on the accounts of the Rehoboth Town Council have revealed that the councils Pay-As-You-Earn (P.A.Y.E.) returns were not submitted to the Directorate of Inland Revenue on time in the 2012 financial year.
The report for the financial year ended June 2012, which was tabled in Parliament on Wednesday, disclosed that an amount of N.dollars 1 591 717 was owed to the Directorate of Inland Revenue, and there was no provision for penalties and interest on this amount.
With regards to the Old Housing Fund, the AG, Junias Kandjeke, noted that the fund loans receivable reflect an amount of N.dollars 3 124 386 and the list received from Council reflects an amount of N.dollars 3 280 769 - a difference of N.dollars 156 383 which could not be explained.
The Old Housing Fund provides housing loans to low-income inhabitants, and income for this fund is derived from interest earned on secured housing loans and investment.
The report added that the Build-Together Housing Fund reflected an amount of N.dollars 4 033 048 for advances to buyers, while no supporting documentation could be provided for audit purposes.
The Build-Together Fund provides housing loan assistance to low-income earners in society through which the low-income earners are expected to provide their house plans and are vetted for qualification before the funds are disbursed.
This, the report said, is a revolving fund, through which low-income earners are expected to repay the loans on a monthly basis for a period of up to 20 years at an interest rate of five per cent per annum.
Income for the fund is derived from interest earned on secured housing loans and investments.
Other funds the Rehoboth Town Council could not explain to the auditors include a Sewerage Fund of N.dollars 9 917 338 and a Capital Development Fund amounting to N.dollars 1 163 830.
The report further revealed that all overspending was approved by the Council, while no asset register for motor vehicles and values thereof was available to determine this information.
The Council, it indicated, has various suspense accounts which could also not be traced to supporting documents.