The Office of the Auditor General (SAI Namibia) is established under the Constitution. The Head of the SAI is appointed by the Parliament on recommendation of the Head of State for a 5 year and there are no age restrictions. The procedure to terminate the appointment of the Head of the SAI is through Parliament. 2/3 or more votes are required, and the reasons could be gross misconduct, mental incapacity or prolonged illness.
The various conditions of service of the Head of the SAI to secure independence of the SAI are:
Regarding the relationship of the SAI with other branches of the government is like external auditors vs. clients. The SAI does not have financial independence. The SAI is invited to a budget hearing in which it may motivate its budget. Should the hearing not bring about a satisfactory selection, the Minister of Finance can be addressed personally. He/she has however the right of final decision.
As regards the mechanism to secure accountability of the SAI, treasury sends a team of internal auditors/inspectors annually to ensure compliance with instructions and procedures. The office of the Prime Minister similarly sends a team of internal auditors/inspectors annually to ensure compliance with instructions and procedures. A team of SAI's auditors annually audit the transactions of the office and report to the Auditor General.
The SAI's jurisdiction extends to following:
The SAI's jurisdiction extends over the Agencies to whom performance and delivery of public services is contracted out. (limited to payments made by Ministries for such contracts. Books of contractors not audited by SAI).
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate, under the authority of Section 26 (1)(b) of the State Finance Act, 1991. Further, it has powers to enforce or initiate enforcement action to secure access to needed records, which are not produced.
The SAI does not have power to seal documents and other related items considered necessary for audit and inspection; once fraud is established, matter is reported to police who confiscate the records. The SAI has power to search and seize documents and other related items considered necessary for audit and inspection. It has the powers to seek testimonials of the persons concerned (appearances and answers) of the persons concerned or those who are deemed to have been involved in the matter subject to audit and inspection. The SAI has the powers to seek co-operation of persons other than agencies subject to audit and inspection as per section 26 (1) (b) (vi) of the state Finance act 1991..
The SAI has powers of instructing government investigating agencies to perform activities considered necessary - the SAI can request, but not enforce. The SAI can decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection - only to decide on whether such claim is well founded enough to warrant an investigation, and then to investigate.
The SAI has the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters though only with the approval of the President on grounds of confidentiality as per section 25(2) of the State Finance Act, 1991. The SAI does not have powers to take punitive actions and/or impose surcharges. Reports are discussed at the Standing Committee on Public Accounts. This Committee can recommend to Parliament actions to be taken. If approved, it can be enforced.
The SAI has powers to access the computer systems of the auditees and to download and use electronic data either in site of off site. Further it can also review the development of computer systems of the auditees and suggest any controls. The SAI is normally involved during the development of such systems.
The SAI has a role in the appointment of other external auditors engaged by the auditees for meeting statutory requirements. Further if such external auditors are engaged, the SAI has powers to supervise and regulate their work; only if the enabling legislation stipulates as such. In most cases the appointment is done in consultation with the SAI. Namport is currently the only organisation where the Act stipulates that audits must be carried out to the satisfaction of the Auditor General.
The SAI prescribes Financial, Compliance, Performance & EDP (if capacity permits) Audits in its scope of Audit. The powers to perform these audits are mandated by the Section 25 of State Finance Act no. 31 of 1991. The SAI conducts Concurrent and Special audit.
The SAI does not discharge judicial functions. The SAI is required to follow the International Auditing Standards. The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g.
The SAI can engage consultants and/or obtain professional services in conducting audit. The SAI can report on acts that infringe upon State economic interests like mass embezzlement of state assets, serious losses and wastes. The SAI requires that any fraud or embezzlement be reported mandatorly by the auditees. The reports on the findings are sent through Minister of Finance to Parliament.
The SAI does not have any role on the disposal or the action taken on the audit findings. The SAI does not present an interim report before rendering an annual report on the examination of the closing of accounts of the Federal, Provincial and local governments. The Reports are shared with public and media mainly after the formal reporting. In case of Financial Statements audit, the SAI does not have the powers to amend accounts. The SAI has an advisory role, e.g. the SAI was consulted during change of accounting of systems.
The SAI is constituted as an audit office with monocratic status. All three tiers are audited by the SAI - Governors, Regional and Local Authorities (one single office). The SAI is empowered to engage external auditors/ agencies/ consultants as required.
The SAI can expend resources budged independently; expenditure must be in line with approved budget act. Treasury instructions must be followed as well as instructions given by the Accountant general of the Ministry of Finance. It has full independence in forming its workplan.
All the recruitments are done by the Public Service Commission on recommendation of the SAI. Change in conditions also needs to be submitted to the Public Service Commission for consideration and recommendations.
The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities to the State House in order to brief the President on all material events pertaining to the SAI. This is done on an irregular timeframe, sometimes monthly, sometimes three, four or five monthly. The report contains current status of reports, e.g. arrears, reasons, way forward, training carried out, staff issues, visits to other countries, financial/budgetary reports, etc.