The Ministry of Defence and Veterans Affairs cannot explain a gap of N$860 000 in its records of outstanding travel allowances, the auditor general has found.
This is according to Junias Kandjeke’s report for the financial year ended 31 March 2025. The report shows that the ministry’s accounting officer reported outstanding subsistence and travel (S&T) allowances of N$1.2 million owed by 437 staff members.
However, the ministry’s financial records showed a balance of about N$2 million in an S&T advance suspense account, leaving a difference of N$860 000.
“The accounting officer reported an amount of N$1.2 million as outstanding subsistence advances, however, the S&T advance suspense account reflected a debit balance of N$2 million, resulting in an unexplained difference of N$860 000 as at 31 March 2025,” the report says.
It does not accuse any official of stealing money, but highlights a difference between the amount reported by the accounting officer and the amount reflected in the ministry’s financial records.
OTHER EXPENDITURES
According to Kandjeke, unauthorised expenditures were found during the financial year, including the department exceeding a total budget of about N$253 million which was unauthorised in terms of the State Finance Act.
The report says eight main divisions were exceeded by an amount of N$261 million – also unauthorised in terms of the act.
“Treasury approval was obtained to use certain expected savings for the defrayal of expenditure through virements during the year, 16 operational subdivisions were exceeded with a total amount of N$289 million, and one development subdivision was exceeded with a total amount of N$27 million, which is unauthorised in terms of Section 6(a)(iii) of the State Finance Act,” Kandjeke says.
He says the Cabinet, at its fifth meeting held on 19 May 2020, approved an allocation of N$100 million to the department of defence, in consultation with the Ministry of Finance, to subsidise the payroll costs.
“However, the audit revealed that the Cabinet decision and related memorandum did not specify a lapsing date, duration, or renewal conditions for the approved subsidy. As a result, the department has continued to subsidise the payroll expenses of the three entities beyond the 2020/21 financial year without any subsequent Cabinet review or reauthorisation.
“This situation exposes the department to the risk of unauthorised or irregular expenditure, as continuing based on the original Cabinet authority may no longer be applicable,” he says.
For the main divisions that went heavily over budget, the ministry in the report says the overspending was primarily due to the implementation of a 5% salary adjustment, effective 1 April 2024.
During the 2024/25 mid-year budget review, the ministry submitted financial forecasts explicitly highlighting a major shortfall under the personnel expenditure category because of this 5% salary hike.
Despite flagging this as a critical concern to the treasury or government authorities during the mid-year review, no additional funds were allocated to the ministry, which forced it to incur the overspending.
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