Sankwasa warns local authorities: No audits, no budget
Minister of Urban and Rural Development James Sankwasa has warned that local authorities that fail to submit audited financial statements could be denied government budget allocations, saying municipalities and town councils must be held accountable for the management of public funds.
Speaking in Otjiwarongo, Sankwasa raised concern over the financial state of some local authorities, saying several have either not been audited for the 2024/2025 financial year or have received qualified or adverse audit opinions.
He questioned the continued extension of employment contracts for chief executive officers and acting chief executive officers at councils that continue to perform poorly in financial management.
“These contracts are being extended over and over. Extended to do what? The job is not being performed,” Sankwasa said.
The minister said local authorities should not receive government funding from the start of the financial year unless they have produced audited financial statements.
According to him, councils that fail to account for public money should not continue receiving public funds.
He further warned that spending money without an approved budget amounts to unauthorised expenditure, which he described as a criminal offence.
Sankwasa also blamed weak governance and poor oversight for the continued failure of some local authorities to meet audit requirements. He said accountability must begin with those entrusted to manage public resources.
Although the minister did not identify specific local authorities, his remarks reflect growing concern over financial governance in municipalities and town councils. The proposed measure is aimed at strengthening accountability, improving compliance with audit requirements and ensuring that public funds are managed responsibly.
