Renthia Kaimbi
The Trust Fund for Regional Development and Equity Provisions underperformed on its housing mandate in the 2024/25 financial year.
This despite auditor general Junias Kandjeke issuing an unqualified opinion on the fund’s financial statements for the year ended 31 March 2025.
Kandjeke’s latest audit showed the fund struggled to convert its financial position into results for communities waiting for houses and serviced land.
The fund spent only 21% of its approved project budget against a target of 100%.
The audit attributes the low spending rate to new projects being planned late in the financial year.
Many projects were introduced during the third and fourth quarters, forcing funds to be rolled over to the 2025/26 financial year.
Performance on the fund’s key objective of delivering serviced urban land and housing was described as a “major failure”.
Out of 13 housing projects tracked during the period, one reported no progress against its annual targets.
Several projects in Gobabis and Mariental faced problems due to insufficient funds allocated per house to complete construction.
According to the report, only the Opuwo project met its target, completing 38 houses against a target of 19.
The audit also flagged a compliance lapse in the financial statements.
It stated that management restated the statements to correct a prior misclassification of N$9.2 million linked to committed funds for unfinished projects.
“Management did not disclose in the notes the nature and reason for the reclassification, contrary to IPSAS 1,” Kandjeke stated.
The report also found that the Fund submitted its financial statements late. They were submitted on 21 August 2025.
The submission is “not in compliance with Section 22 of the Public Enterprise Governance Act 2019.”
While project delivery lagged, the report noted that governance structures performed well.
It added that meetings of the projects committee, finance and audit committee, exco and the board all met or exceeded their targets.
Kandjeke said quarterly reviews of the annual plan were completed at 100%, adding that performance agreements with the minister, board members and staff were also signed.
“The audit procedures confirmed that the strategic framework is sound, but its implementation failed to deliver results,” Kandjeke noted.
Peer-to-peer reviews for the board of trustees reached only 32.5%.
Financial compliance remained strong. The Fund achieved a 100% unqualified audit and recorded 97.5% progress in compiling its financial statements.
