N.dollars 90 million unaccounted for at NDC

18 Mar 2019 13:50pm
WINDHOEK, 18 MAR (NAMPA) – The Namibia Development Corporation (NDC) has failed to submit documentary evidence to prove how it spent N.dollars 90.1 million between 2015 and 2017, the latest report by the Auditor General (AG) has found.
The report, in which the NDC received an adverse opinion from AG Junias Kandjeke, poked holes in the corporation’s accounting processes.
An adverse audit opinion is a professional opinion made by an auditor indicating that a company's financial statements are misrepresented, misstated and do not accurately reflect its financial performance and health.
The report was submitted to the National Assembly by Deputy Finance Minister, Natangwe Ithete last week.
Kandjeke pinpointed eight irregularities in the parastatal’s financial statements for the financial periods between 2015 and 2017.
Predominantly, the auditors found that the NDC had an unreconciled bank clearing account amounting to N.dollars 13.4 million in 2016.
It was further found that a bank control account amounting to N.dollars 18.9 million was not reconciled in 2017.
Coupled to this are receipts amounting to N.dollars 4 million in 2015, N.dollars 11.6 million in 2016 and N.dollars 11 million for 2017 that were also not reconciled.
The report further said the adverse audit opinion was issued because of the existence of inventory related to the dates’ stock of N.dollars 12.1 million (2015) and N.dollars 10 million (2016), for which no observation of the physical counting process was facilitated.
Moreover, the auditor found no letter for special fund amounting to N.dollars 8.2 million was provided for audit purposes.
It was also established that NDC does not have a policy in place to ensure adequate valuation of vineyards, date plantations and agricultural produce while the accounting standards it used are not applicable for Public Interest Entities, the report further reveals.
“The rights to properties without title deeds could not be determined and in addition, valuation of the properties did not conform to the adopted company policies,” the reports states.
The company’s value added tax was understated by N.dollars 1.7 million.
“The accompanying financial statements do not give a true reflection and fair view of the financial position of the entity as at 31 March 2015, 2016 and 2017 and its financial performance,” Kandjeke opined in the report.
The NDC exists to promote, develop and support all sectors of the Namibian economy for sustained economic growth and the economic empowerment.
Last year, the government created the Namibia Industrial Development Agency to replace the Offshore Development Company and the NDC.