Hertta-Maria Amutenja
The Ministry of Health and Social Services spent over N$54.8 million through irregular emergency and direct procurement, despite laws limiting these methods to exceptional situations.
This is according to the latest audit report by Auditor General (AG) Junias Kandjeke.
The report shows the ministry used emergency procurement to buy goods and services worth N$19.2 million, even though these items were already listed in its procurement plan.
Under the Public Procurement Act of 2015, this method is allowed only during disasters or wars or when lives or the environment are in danger.
The AG’s office found that the ministry did not meet these conditions.
The audit notes that using emergency procurement in this way bypassed the standard process, which is meant to ensure fairness and transparency in public spending.
The ministry also used direct procurement to spend N$35.6 million without inviting competitive bids.
This method is only allowed when a supplier has exclusive rights or no alternative is available.
However, the audit found that the ministry used this method often, even when alternatives existed.
Kandjeke raised concerns about relying on single suppliers, saying it reduces competition and could lead to inflated prices.
The audit also found the ministry exceeded its budget in one main division by N$66.9 million, or 2.35% of the total.
Despite Treasury approving some virements, the ministry still overspent by N$106.8 million across 15 operational and 5 development subdivisions.
This overspending was not authorised and violated the State Finance Act of 1991.
Analyst Ndumba Kamwanyah said the findings point to a pattern of abuse.
“The auditor general’s report shows over N$54 million was spent by the Ministry of Health through emergency and direct procurement. While emergency procurement is meant for true crises, it is often abused. This can lead to overpricing, poor quality goods, corruption, and misuse of public funds. In health care, such failures can directly harm people’s lives,” Kamwanyah said.
He added that large amounts spent without competitive bidding suggest weak internal controls and possible manipulation of procurement rules.
“This may only be the tip of the iceberg. To protect public funds and restore public trust, a fully independent presidential commission of inquiry is urgently needed,” he said.
The ministry’s procurement practices have faced scrutiny before.
Last month, reports surfaced about overpayments for malaria medication, with documents showing large markups between supplier prices and what the government paid.
Concerns were also raised about the purchase of drugs no longer recommended for use and whether the ministry was misled by middlemen.
In 2023, the Central Procurement Board of Namibia (CPBN) came under fire for a proposed N$458 million medical supply tender.
In another case, a CPBN evaluator awarded a tender to a close corporation owned by a relative.
The health ministry did not respond to requests for comment by the time of publication.
