Criminal assets fund in shambles
The financial records of a fund that deals with seized assets involved in suspected criminal activities are in an unfavourable condition.
Auditor-General Junias Kandjeke said this in an audit opinion tabled before Parliament last week for the financial year which ended on 31 March 2023.
The report is based on an income statement and balance sheet provided by Dr Johannes Shimaneni, the accounting officer of the Criminal Assets Recovery Fund. The fund falls under the justice ministry.
Kandjeke raised concerns with the fact that executive director Gladice Pickering answered his queries, and not Shimaneni.
Shimaneni was appointed in September 2021. According to his initial submission, the fund's total assets stood at N$61.65 million for the financial year, up from N$52.8 million in the previous financial year.
The fund's bank account grew by almost N$10 million from N$49.68 million to N$59.31 million. Its total income was over N$9.8 million, while expenses of over N$1 million involved N$298 668 for travel and N$418 060 for subsistence allowances.
In 2021/2022, the biggest expenses were for bank fees (N$533 044.32) and legal costs (N$693 130) against total losses of N$1.24 million.
Misrepresented
However, according to Kandjeke’s report, the fund’s accounts are either misrepresented or misstated, and do not accurately reflect its financial transactions.
The auditor-general said Shimaneni did not disclose fixed assets and vehicles on the fund's balance sheet.
The audit found that the vehicle asset register did not contain the opening balance, seizures or auctions, or closing balance. The ministry undertook to get the asset register up to date for the 2024/2025 financial year.
Meanwhile, a register of fixed assets was also not provided. The auditor-general advised that property, which is obtained through the application of the Prevention of Organised Crime Act (POCA), should be reported to the deeds office and recorded on the register.
Furthermore, Kandjeke found that the management of the fund does not comply with requirements of POCA, the Public Finance Management Act, Public Procurement Act, and relevant instructions from Treasury.
Auditor-General Junias Kandjeke said this in an audit opinion tabled before Parliament last week for the financial year which ended on 31 March 2023.
The report is based on an income statement and balance sheet provided by Dr Johannes Shimaneni, the accounting officer of the Criminal Assets Recovery Fund. The fund falls under the justice ministry.
Kandjeke raised concerns with the fact that executive director Gladice Pickering answered his queries, and not Shimaneni.
Shimaneni was appointed in September 2021. According to his initial submission, the fund's total assets stood at N$61.65 million for the financial year, up from N$52.8 million in the previous financial year.
The fund's bank account grew by almost N$10 million from N$49.68 million to N$59.31 million. Its total income was over N$9.8 million, while expenses of over N$1 million involved N$298 668 for travel and N$418 060 for subsistence allowances.
In 2021/2022, the biggest expenses were for bank fees (N$533 044.32) and legal costs (N$693 130) against total losses of N$1.24 million.
Misrepresented
However, according to Kandjeke’s report, the fund’s accounts are either misrepresented or misstated, and do not accurately reflect its financial transactions.
The auditor-general said Shimaneni did not disclose fixed assets and vehicles on the fund's balance sheet.
The audit found that the vehicle asset register did not contain the opening balance, seizures or auctions, or closing balance. The ministry undertook to get the asset register up to date for the 2024/2025 financial year.
Meanwhile, a register of fixed assets was also not provided. The auditor-general advised that property, which is obtained through the application of the Prevention of Organised Crime Act (POCA), should be reported to the deeds office and recorded on the register.
Furthermore, Kandjeke found that the management of the fund does not comply with requirements of POCA, the Public Finance Management Act, Public Procurement Act, and relevant instructions from Treasury.
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