Kandjeke gives bad verdict to land acquisition fund

22 Nov 2018 16:00pm
WINDHOEK, 22 NOV (NAMPA) – Auditor General Junias Kandjeke has issued a disclaimer audit opinion to the Land Acquisition and Development Fund for its failure to provide supporting documents amounting to N.dollars 168.8 million for the financial year 2016/17.
A disclaimer opinion is issued to institutions where the auditors were not able to obtain sufficient evidence to carry out an audit.
The information is captured in the fund’s audit report, which was submitted to the National Assembly by Finance Minister Calle Schlettwein on Wednesday.
During the audit execution, the auditors observed that the deed of sale for farms purchased amounting to N.dollars 13.8 million were not submitted for audit purposes.
The fund also did not submit valuation reports of farm purchases amounting to N.dollars 103 million.
As such, the accuracy and valuation on farm purchases could not be confirmed in both instances.
The fund is further implicated in failing to provide the auditors with supporting documents for sale of farms and infrastructure development costs amounting to N.dollars 40.8 million and 11.2 million respectively.
It was recommended that it ensures all documentation is kept safe and made available for audit purposes.
Kandjeke further discovered that farms purchased by the fund since its existence are registered in the name of the Namibian Government, consequently, it is unclear whether they belong to the Ministry of Land Reform or the fund.
It was noted that the annual financial statements have been prepared on the assumption that these farms do not belong to the fund.
“The fund should determine or clarify which entity owns the farms it purchased,” noted Kandjeke, adding that if it is established that the fund is the rightful owner of the farms, it will then be able to capitalise all farms purchased since its inception.
In addition, the auditors found a difference of N.dollars 15 million in the post settlement support fund revolving fund performance report balance and the recorded amount in the general ledger of N.dollars 30 million.
The difference is as a result of the incorrect accounting treatment of the revolving fund at cost instead of at amortised cost, as per the memorandum of understanding with the Agricultural Bank of Namibia, Kandjeke said.
Amortised cost is that accumulated portion of the recorded cost of a fixed asset that has been charged to expense through either depreciation or amortisation.
Other reasons for the damning verdict according to the auditors is the Land Acquisition and Development Fund’s failure to invoice security expenses amounting to N.dollars 5.6 million; lack of budget analysis and inability to confirm the completeness of creditors.