21 Aug 2019 18:50pm
WINDHOEK, 21 AUG (NAMPA) - The Parliamentary Standing Committee on Public Accounts Committee questioned the existence of the Land Acquisition and Development Fund because government already has a finance system to purchase farms.
Addressing the management of the Fund here on Wednesday, Chairperson of the committee, Mike Kavekotora said there was no need for the fund because it is solely used to facilitate transactions for the government.
There was no need for the establishment of the fund because it is a conduit through which funds are being channeled to acquire farms and bring them back to government, he pointed out.
He raised a concern that salaries paid to staff members are an exorbitant amount with the funds personnel expenses, under which the salaries are listed, at N.dollars 1.2 million and N.dollars 5.3 million in 2016 and 2017, respectively.
The Deputy Executive Director Ndiyakupi Nghituwamate justified the Funds existence by reading out the Act that established it.
According to the Agricultural (Commercial) Land Reform Act 6 of 1995, the Fund was established to facilitate the process of any person in connection with the lease of any land allotted in terms of this Act, or the cancellation of any such lease, including the payment of compensation, interest and costs.
The Fund received a disclaimer audit report for the 2016/2017 financial year by the Auditor General (AG) meaning that they could not provide an opinion on the financials of the institution to gauge its performance.
Throughout the public hearing, the committee noted that the Fund has clerical issues such as listing farms with its wrong hectors, valuation reports that were not handed to the auditors on time and not being able to present deeds of sales.
The Acting Executive Director, Ester Kaapanda, clarified that these errors have however been addressed after she read the AGs report two weeks ago and measures were put in place.
The deed of sale for farms purchased during the 2016/17 financial year, which amounted to N.dollars 13.8 million, could not be traced by concerned Ministry of Land Reform staff at the time of the audit and therefore could not be verified.
As a remedial action, Kaapanda said the sub-division within the Ministry of Land Reform is now not allowed to accept farm transfer requests without a copy of the deed of sale attached.