Rédaction Africa Links 24 with Sonja Smith
Published on 2024-03-25 17:00:00
The management of the Namibia Institute of Pathology (NIP) has faced criticism for ignoring the advice of its chief internal auditor to purchase 18 vehicles for N$8 million instead of renting them at N$10.4 million over four years. The decision to acquire new cars has sparked controversy among staff members and raised concerns about the financial implications for the parastatal.
In August 2023, the NIP’s chief internal auditor, Mekondjo Katunga, prepared a breakdown of the costs associated with the new fleet of vehicles. The comparison showed that by the end of the lease period, the NIP would have spent N$10.4 million on vehicles that would not become assets of the parastatal. Katunga advised against the leasing of the vehicles, citing concerns about the long-term financial liabilities it would create for the NIP.
Despite the internal auditor’s warnings, the management of the NIP proceeded with the decision to rent the vehicles. The parastatal released a statement justifying the move, stating that the new rented vehicles would improve transportation and ensure timely and high-quality healthcare support. The NIP’s chief executive, Kapena Tjombonde, emphasized the importance of efficient specimen transportation in delivering healthcare services and expressed confidence that the new vehicles would address operational challenges and improve service efficiency.
The costs breakdown of the vehicle acquisition process revealed that three companies submitted bids for the tender to provide vehicles on a full maintenance lease basis and fleet management services for 48 months. The comparison of costs showed that leasing the vehicles would be more expensive than buying them outright, as highlighted by Katunga’s analysis.
Tjombonde defended the decision to rent the vehicles, citing benefits such as full maintenance lease agreements, immediate vehicle replacements in case of breakdowns, and advanced tracking and management systems. She emphasized that the NIP’s primary focus is on providing healthcare services and saving lives, rather than maintaining vehicles, which is why they opted for the leasing option.
Despite the management’s justifications, the decision to ignore the advice of the chief internal auditor and proceed with leasing the vehicles has raised concerns about the financial sustainability of the NIP. The controversy surrounding the acquisition of the new fleet of vehicles has underscored the importance of transparent and accountable decision-making processes within public institutions.
In conclusion, the NIP’s decision to rent 18 vehicles instead of purchasing them has sparked debate and criticism within the organization. The financial implications of this decision, along with the concerns raised by the chief internal auditor, highlight the need for greater transparency and accountability in the management of public funds. It remains to be seen how this controversy will impact the operations and reputation of the Namibia Institute of Pathology in the long term.
Read the original article on The Namibian
