City ignores Govt salarycap, blows N$20m

The City of Windhoek overspent nearly N$20 million on employee salaries in 2024 after implementing pay increases above government-approved limits, the auditor general has found. The audit report found that employee costs were overstated by N$19.9 million in 2024 because the municipality implemented a 5% salary increase negotiated with the Namibia Public Workers Union, despite ministerial approval being limited to 3%. The issue was also identified in previous years, with employee expenses overstated by N$72.2 million in 2023 and N$24.1 million in 2022.

“The employee costs incurred are overstated by N$19.8 million, N$72 million and N$24 million for 2024, 2023 and 2022 respectively,” auditor general Junias Kandjeke says. Kandjeke says they could not satisfy themselves that the expenditure was properly incurred because the salary adjustments exceeded approved limits. The report also states there are weaknesses in the municipality’s information technology systems, warning that possible financial impacts could not be determined.