Allexer Namundjembo
Senior accounting and financial adviser Mefflint de Waal said removing the digital aspect of the payroll deduction management system (PDMS) and replacing it with a manual helpdesk could cause problems with salary payments.
He said the change may slow down payroll services and reduce proper financial checks for public servants.
De Waal said the move from an automated digital platform to a manual system marks a step back in public sector service delivery.
“For more than two decades, Namibia operated a fully automated PDMS that linked government payroll directly with banks and insurers in real time. That system protected more than 100 000 public servants from over-indebtedness and administrative errors,” De Waal said in an interview with the Windhoek Observer.
He said dismantling the digital system and introducing a helpdesk-based process reverses progress made in government financial technology.
“What we are seeing now is a move from a modern, integrated digital platform to a manual callcenter-style operation. This is not simply a process change – it is a step backwards in how payroll-related financial services are delivered,” he said.
Last month, the Ministry of Finance said that no digital system was ready to replace PDMS and that payroll deduction matters would be handled through a PDMS helpdesk.
De Waal said the interim arrangement raises operational risks.
“Where automated rules and controls once applied deductions instantly and consistently, we now have manual intervention, human discretion and a much higher potential for administrative errors,” he said.
He added that the change also affects transparency and auditability.
“A digital system provides clear audit trails and uniform application of rules. A manual process cannot offer the same level of transparency or consistency,” De Waal said.
The PDMS previously enabled real-time interaction between the government payroll system and financial institutions.
This allowed authorised deductions such as loan repayments, insurance premiums, union subscriptions and other payments to be processed automatically for more than 100 000 public servants.
De Waal said the shift could also increase costs.
“Manual processing means additional staff, additional infrastructure and longer turnaround times. Ultimately, those costs will be carried by both service providers and employees,” he said.
This followed the government’s decision in 2025 to discontinue discretionary payroll deduction codes and to move payroll deduction management in-house.
The decision triggered legal challenges from microlenders and other affected parties, who argued that the changes would disrupt repayment systems and harm civil servants who rely on payroll deductions to manage their financial obligations.
In December 2025, the Windhoek High Court issued an order preventing the ministry from interfering with payroll deduction arrangements while a legal review is underway.
De Waal said the lack of a digital replacement remains a key concern.
“Namibia has positioned itself as a country that wants to be an ICT leader in the region, yet we are dismantling a working digital system without having a modern alternative in place,” he said.
PDMS was introduced in 2003 and operated under contract by a private service provider.
