The Namibian government has made strides in managing public finances through the budget formulation process, accounting systems and debt management, a new study reveals.
According to the African Peer Review Mechanism (APRM) study, the advancements are further supported by a Medium-Term Expenditure Framework, which provides a clear roadmap for public spending, and a commitment to fiscal discipline.
The study, undertaken in 2021, highlighted the implementation of an Integrated Financial Management System, the formulation of a comprehensive debt strategy, combined with an improved regime on reporting on the country’s debt, as most achievements in terms of management of public finances.
“Significant progress has also been made in ensuring accountability of the country’s public finances and resources through the adoption of international standards and approaches to internal audits. Also, the Constitution has provided for an Auditor General to audit all government accounts and those of statutory bodies, special funds, and local authorities amongst others,” the APRM panel review stressed in a report launched by President Nangolo Mbumba today.
It noted that each office, ministry, and agency of the Government in Namibia is also required to have its internal audit.
There is an independent office of the Auditor General whose duties and powers are prescribed in the State Financial Act of 1991.
During the review mission, the review panel said some concerns were raised that the Auditor General’s office does not enjoy full financial independence as its budget is prepared and approved by the Ministry of Finance and Public Enterprises.
Although, functions such as setting the standard for the internal audit of public institutions, monitoring compliance with standards, providing guidance and advice, identifying appropriate training and capacity building programmes and identifying the requisite professional qualifications for internal auditors, are being undertaken by the Ministry of Finance rather than the Auditor General.
“The review team did not, however, receive any evidence that in practice this arrangement undermines the independence of the Auditor General in any substantial way,” it concluded.
