Health ministry overspends by N$282 million

WINDHOEK, 13 JUL  – The Ministry of Health and Social Services (MoHSS) overspent its total budget by N.dollars 282 million and failed to account for 100 vehicles during the 2016/17 financial year, Auditor-General (AG) Junias Kandjeke’s report reveals.
The audit report which was tabled in the National Assembly by deputy finance minister Natangwe Ithete on Wednesday showed that the ministry overspent its budget by 4,05 per cent during the year under review, which is a 1,38 per cent N$ 57 million) decrease from the previous year.
In the preceding year, the ministry overspent with N$ 339 million, which translated into 5,43 per cent more than its total budget then.
The AG recommended that the accounting officer (Permanent Secretary) closely monitor and review the financial position of the ministry on a continuous basis.
“This is to allow for better financial control and appropriate action to be taken timeously to avoid unauthorised expenditure in the ministry.”
According to Kandjeke, the ministry also had 100 vehicles unaccounted for as of 31 March 2017, adding that 60 more vehicles were purchased without any being auctioned, written off or donated.
The report further explained that the 60 vehicles cost the MoHSS N.dollars 49 million; however, the actual amount spent on the acquisition of the vehicles as per the ministry’s general ledger was N.dollars 63 million, which gave an “unexplainable” difference of nearly N.dollars 14 million.
Kandjeke recommended that the Permanent Secretary (PS) investigate and explain the vehicles that are unaccounted for as well as the inconsistencies in their reporting of vehicles.
The discrepancy in disclosure of information by the ministry could lead to possible fraud and misstatements of the financial statements of the ministry, Kandjeke cautioned.
In her comment, according to Kandjeke, PS Petronella Masabane explained that the records of the ministry show an opening balance of 1 984 (corrected) as 34 vehicles were written off.
“However, there was a calculation error in the statement submitted and an adjusted statement could have been provided.”
According to Masabane, the difference N$13.7 million) in purchase price of the 60 vehicles and the ledger amount are for medical devices purchased for “other ambulances”.
(NAMPA)