By Confidente Reporter
THE beleaguered Khorixas Town Council has made a net loss of over N$16 million in the past couple of years, a situation the Auditor General, Junias Kandjeke fears might prevent the municipality from effectively running its activities.
The figures are contained in the AG’s recent report on the council’s financial affairs where a net loss of N$8 448 193 was reported in 2015 while N$9 102 581 was reported in 2015.
The report further reveals that the council’s current liabilities exceed its current assets by N$7 398 376 in 2015 while that figure stood at N$8 099 575 in 2014.
“The auditors draw attention to the income statement and balance sheet which reflects on the organisation’s ability to operate as a going concern. The income statement shows a net loss of N$9 102 581 (2014: N$8 448 193) and the balance sheets indicate that the council’s current liabilities exceed the current assets by N$7 398 376 (2014: 8 099 575).
“These conditions indicate the existence of a material uncertainty which may cast significant doubt about the council’s ability to continue as a going concern without the continued financing by the council’s bankers and support by government, and therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business. The financial statements do not include any adjustments to the classification or valuation of assets and liabilities that may be necessary if the council is not able to continue operating as a going concern,” the AG’s report reads.
The AG in the report also noted that a considerable provision for bad debts has been raised which he says is an indication t h a t t h ecouncil needs to improve its debt collection system.
The council has in recent times made headlines in the local media over rife allegations of corrupt activities and wasteful expenditure reportedly by the council’s management.
Residents in that town last month staged a peaceful demonstration over the alleged corrupt activities in which they also delivered a petition to the town’s deputy mayor, Emgardt Nanuses which was also sent to Urban and Rural Development Minister Sophia Shaningwa for intervention.
The corrupt dealings residents want investigated include the disappearance of N$3 million meant for the construction of a much needed fire station, the rushed and unprocedural awarding of a N$7 million road tender and nepotism amongst a host of other irregular affairs.
In the petition, the residents also said that the unabated corrupt practices caused a rapid decline in development in the town adding it could have a negative social impact in the long run if not properly investigated and amicably addressed.
Confidente. Lifting the Lid. Copyright © 2015