The Ministry of Defence and Veterans Affairs has been flagged by the parliamentary standing committee on public accounts for obstructing an audit of its critical military equipment.
This issue was highlighted in the committee's report for the ministry's financial year ending on 31 March 2019.
In 2024, Affirmative Repositioning leader Job Amupanda drew attention to a controversial N$8 million quotation, allegedly for a single spare part for a military vehicle. However, the ministry clarified that the quotation was for multiple vehicle parts, not just one.
These parts were sourced by August 26 Holding Company from Windhoeker Maschinenfabrik on behalf of the ministry.
Following the allegations, the board of August 26 Holding Company suspended its chief executive Ndajoina Shalumbu in December 2024. The board stated that the suspension was unrelated to the quotation but was necessary to facilitate an internal investigation.
The ministry was issued a disclaimer audit opinion for the period under review due to a "scope limitation", meaning the Office of the Auditor General was unable to access and verify receipts against actual equipment procured or repaired by the ministry.
"During the audit process, auditors were denied access to military equipment and were also refused permission to enter operational military bases by the accounting officer, resulting in the scope limitation," the report states.
The committee, chaired by Dud Mororwa, raised concerns about the ongoing denial of access and inquired whether the restriction was still in place during the hearing. Additionally, the accounting officer was asked to clarify the ministry's interpretation of Section 26(1)(b)(i) of the State Finance Act 31 of 1991 and its implications on the auditor general's work.
The committee further questioned why the ministry arbitrarily denied auditors access to perform their mandate, pointing out that only the president, after consulting with the auditor general, has the authority to make such a decision.
According to the report, the accounting officer claimed that while the ministry did not object to the overall auditing of its books, accounts, and assets, it had concerns about the inspection related to the auditing and publishing of key performance indicators. This included the verification of military equipment and the readiness of the Namibian Defence Force.
The committee noted that the ministry and the Office of the Auditor General had engaged in discussions and reached a mutual understanding. However, it emphasised that the ministry failed to follow the necessary provisions of the State Finance Act.
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"It was concluded that access was denied without proper procedural justification, despite the fact that auditors are vetted every five years to ensure the sensitivity of the ministry's operations is safeguarded," the report concluded.
Additionally, the committee flagged an invoice totaling N$506 million, which could not be verified. The ministry claimed that revealing such information could compromise military security by exposing the capability of its equipment to the public.
The committee has recommended that the provisions of Section 26(1)(b)(i) of the State Finance Act be strictly adhered to in the future, ensuring that auditors are granted full and unhindered access to perfor
m their duties.
