NAMIBIA — According to the Auditor General (AG) audit report for the Ministry of Health and Social Services (MOHSS) financials, that has been tabled in the National Assembly of Namibia, the ministry overspent its budget allotted for the 2021/2022 fiscal year by US$31.03 million.
The Auditor General, Junias Kandjeke noted while presenting the report to the National Assembly, that the government allocated US$537.26 million to the MOHSS to undertake its mandate in the fiscal year.
Furthermore, the MOHSS overspent the allotment with US$31.03 million bringing the total amount disbursed to the ministry at US$568.29.
“This amount is unauthorized in terms of section 6(a)(i) of the State Finance Act of 1991,” Kandjeke declared.
He said although treasury approval was obtained to utilize definite expected savings for the settlement of expenditure through virements during the year under review, 17 subdivisions were exceeded with a total amount of US$40.85 million.
“It is recommended that the accounting officer, Ben Nangombe – the executive director of the Ministry of Health and Social Services, put measures in place to avoid overspending and ensure that planned activities are implemented within the approved budget,” Kandjeke said.
Kandjeke added that if specific activities are expected to exceed the budget, funds should be transferred from activities where savings are expected.
In a rejoinder to the report finding, MOHSS Executive Director, Ben Nangombe told Kandjeke the ministry had taken note of his recommendations and would ensure the process is strengthened.
Kandjeke also reported that during the year under review, the ministry made 51 duplicate payments to suppliers amounting to US$51,585.
“With regards to duplicate payments, management explained that the Integrated Financial Management System (IMFS) has multiple supplier codes for a single supplier, which increases the risk of duplicate payments,” elaborated Kandjeke.
The duplicate payments were, however, credited against balances of subsequent months, Kandjeke also said.
Nangombe told Kandjeke the ministry embarked on a continuous process of recovering payments.
Kandjeke also found that the bills payable on the suspense account for the ministry have a debit balance of US$210,000 instead of a credit balance.
“It is recommended that the accounting officer ensure that the balance is reconciled,” Kandjeke said.
Nangombe said the ministry is currently busy with reconciliation and verifications of the financials at the MOHSS.
In addition, the audit found that 51 transactions amounting to more than half a million dollars were initiated and approved by the same staff member, which Kandjeke said defeats the purpose of the segregation of duties.
Kandjeke recommended that controls should be strengthened to ensure the segregation of duties in terms of payments.
“The same applies to the allocation of users’ rights, to avoid intimidation and approval of transactions by the same staff member. The ministry is seeking assistance from the finance ministry to segregate users’ functions,” he said.
Auditing health projects financing
The audit also found that the total expenditure for 10 capital projects as of 31st March 2022 exceeded the approved total budget.
These were for the upgrading and renovation of the Katutura Intermediate, Windhoek Central, Oshakati Intermediate, Onandjokwe, Keetmanshoop, Rundu, and Okahandja hospitals.
The projects also included the construction and upgrading of primary healthcare clinics nationwide, the upgrading of Katima Mulilo Hospital, and the maintenance and repairs of health infrastructure.
The MOHSS responded that the named projects were expected to be completed by 31 March 2025.
According to the report, the approved budget for the renovation and upgrading of Katutura Hospital was US$12.76 million, however, the ministry had a total expenditure of US$18.88 million.
In the case of Windhoek Central Hospital, the total budget was US$11.89 million, however, the ministry spent US$15.37 million.
The upgrading of primary healthcare clinics nationwide had a budget of US$49.7 million, however, the total expenditure was US$67.16 million.
“It is recommended that the accounting officer ensure the total approved budget per project is not exceeded without approval from the finance ministry, “ the AG. urged.
However, Nangombe in the report said the ministry submits new budget requests annually for capital projects by means of the Project Identification Forms (PIFs) to the National Planning Commission.
“The PIFs are updated yearly to provide the current status of projects, the revised project budget, and the scope of the work to be done. The approval of the development budget, as per the ceilings, is then implemented,” Nangombe revealed.
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