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THREE City of Windhoek departments lost over N$1,7 billion between 2012 and 2014, reports by the auditor general indicate.
The main culprits for the massive losses are the transport department, the economic division and the city police.
These statistics come from three auditor general’s reports from 2012 to 2014 analysed by The Namibian. The latest audit report is that of 2014, which was tabled in the National Assembly last week.
The 2014 report also revealed that there were 10 investigations undertaken at the municipality in a year that saw the city exposed because of its dubious land transactions.
Although the audit reports show that the city experienced a combined loss of just over N$1 billion in those three years, closer scrutiny of the financial audit reports shows that the trouble runs much deeper.
Auditors claim that the municipality recorded a loss of over N$300 million in 2012, N$326 million in 2013 and N$420 million in 2014.
According to the three audit reports, the situation is worsened by the departments which continue to make losses.
This includes the transport division led by George Mayumbelo that recorded losses of N$713 million between 2012 and 2014.
Mayumbelo has, over the years, aspired to be the next chief executive of the municipality.
The Namibian reported last year that although the municipality’s records show that they have 79 buses, only 50 are operational.
Germany helped the city to introduce new buses last year, while a team went to South Africa last year to buy 22 more buses that are expected to cost N$80 million.
Another department under Mayumbelo, the economic and community department, lost N$375 million from 2012 to 2014.
The City Police department under police chief Abraham Kanime had a combined loss of about N$660 million in the three years – N$200 million in 2012, N$262 million in 2013 and N$197 million in 2014.
“Council will have to address the above situation as soon as possible, as continued losses could seriously impact on cash flow,” the audit report said.
City spokesperson Joshua Amukugo admitted to The Namibian in 2015 that running the municipal police has become a burden.
The City Police has over the years been affected by infighting among its top bosses, allegations of corruption, duplication of positions and job-for-pals appointments.
The report warned that the “city is currently commercially not viable, and if the situation is allowed to continue unabated, this operating deficit will eventually erode the equity base resulting in the city being factually insolvent”.
A full audit could not be carried out because the city did no provide information such as a list of its assets – a breakdown of its vehicles, as well as their value and fuel consumption.
Auditors could also not find sufficient audit evidence regarding the valuation and accuracy of debtors, other receivables and related income statement accounts in that year.
“The effects of these give rise to an indication of material uncertainty of the city’s ability to continue as a going concern. The annual financial statements do not disclose these facts,” the report said.
Urban development minister Sophia Shaningwa has rejected calls for a forensic investigation into the city’s affairs.
The auditors found that there have been about 10 investigations into land deals among others at the municipality that were never made public.
City executives have become untouchables, to such an extent that they form cartels to advance their own interests and sabotage others, sources said.