City of Windhoek addresses media report

In response to a recent article published in the New Era newspaper on February 19, 2024, the City of Windhoek has issued a statement expressing concern over what it called “sensationalized and unfortunate journalism”.

The article in question referenced an audit report highlighting historic financial matters dating back to the financial year ending June 30, 2021. While acknowledging the significance of the report, CEO Moses Matyayi pointed out that this is the first time in 12 years that the City had received a Qualified Audit Opinion, marking substantial progress in financial reporting.

He further emphasized the City’s commitment to good corporate governance and statutory compliance, explaining that efforts to achieve full compliance with financial reporting regulations, including the submission of financial statements in accordance with the Local Authorities Act, are underway. The Auditor General has, in fact, commenced the 2022 audit, with preparations underway to conclude the 2023 audit by the end of the year, ensuring all outstanding audits are up to date.

Addressing concerns about financial sustainability and commercial solvency, the CEO highlighted measures taken to address liabilities and improve liquidity, for example, having settled all arrears to creditors, including significant suppliers such as NamPower and NamWater, and ongoing engagement with the central government in order to secure the settlement of long outstanding loans through land and debt swap arrangements, which would significantly improve the city’s current ratio.

Matyayi acknowledged challenges in accounting practices with regard their housing fund, but highlighted efforts to rectify these issues, while also pointing out that they were had addressed technical accounting issues related to land sales and Public-Private Partnership (PPP) reporting, emphasizing consensus reached with the Auditor-General to ensure compliance with International Public Sector Accounting Standards (IPSAS).

Matyayi stressed their commitment to transparency, accountability, and financial sustainability, saying that plans for long-term financial recovery are underway, aligned with the Strategic Plan 2022-2027, with a focus on effective execution to achieve established goals.