By Mary Mutonga
Windhoek, 13 July – The Ministry of Agriculture, Water and Land Reform has released a media statement shedding light on the 8% under-expenditure during the 2021/22 financial year under Vote 37: Department of Agriculture and Land Reform. The statement aims to provide context and address concerns raised regarding the unspent funds.
According to the Ministry’s media release, the total budget allocation to Vote 37 for the period under review was N$1,222,640,000.00. By the end of the financial year, the expenditure stood at 92%, or N$1,124,917,499.77, of the total allocation. The remaining 8%, equivalent to N$98 million, was not utilized for various reasons, as indicated in Auditor Report No.55/2023.
One of the contributing factors to the under-spending was the Main Division 02: Administration, resulting in an under-expenditure of N$15,864,253.52. This amount was primarily allocated for the recruitment of critical budgeted positions within the Ministry. However, due to COVID-19 restrictions, interviews for these positions could not be conducted, resulting in only 60% of the positions being filled.
Additionally, the under-expenditure on capital projects was attributed to factors such as incomplete construction works, non-responsive bidders, unresolved court cases on disputed bids, and late submission of invoices for payment by service providers in the last quarter of the financial year.
The Ministry emphasized that the N$98 million, which was part of the estimated ceilings of Vote 37, was never disbursed as the planned activities were not carried out. It is crucial to note that these unspent funds were not available to the Ministry of Agriculture, Water and Land Reform, dispelling any insinuations of corruption or misuse of funds.
The Ministry expressed its commitment to addressing the challenges that led to the under-expenditure, acknowledging that under-spending is not desirable. While some of the issues were beyond its control, steps will be taken to improve the recruitment process and overcome obstacles that hinder the execution of capital projects.
The media release serves as a response to concerns raised about the government’s ability to effectively allocate and utilize resources for the benefit of citizens. The Ministry of Agriculture, Water and Land Reform remains dedicated to ensuring transparent and responsible financial management while working towards the development and growth of the agricultural sector.
As stakeholders eagerly await concrete actions, it is essential for the Ministry to prioritize the needs of farmers and invest in training programs, infrastructure maintenance, and other initiatives aimed at supporting the agricultural community. By doing so, the Ministry can foster a thriving agricultural sector that contributes to economic growth and food security for the nation.
Farmers and stakeholders in the agricultural sector are hopeful that the Ministry’s commitment to addressing the challenges will translate into tangible improvements and increased support for their endeavors. The effective utilization of resources and a proactive approach will play a crucial role in strengthening the agricultural sector, empowering farmers, and achieving long-term sustainability. -Namibia Daily News
