- slows down local economy that depends on government departments as a key economic actor
Okavango District Council (ODC) chairman, Gaopalelwe Ronald has decried that the slow issuance of General Purchase Orders has been one of the challenges affecting service delivery across various departments.
Amid the struggling economy, government has directed ministries, departments, and agencies (MDAs) to curb spending hence the slow issuance of General Purchase Orders.
In July this year, government temporarily suspended the generation of Government Purchase Orders (GPOs) from the Government Accounting and Budgeting System (GABS). This drastic measure came in response to serious liquidity challenges facing the country.
During the suspension period, MDAs are prohibited from processing or submitting manual GPOs. However, exceptional cases may be considered upon submission through the Permanent Secretary of the Ministry of Finance.
Addressing the final ODC Full Council Session of the year 2025 this week, Ronald said they are all feeling the effects from the inability to procure basic office supplies and spare parts for essential equipment to maintain roads and other government facilities.
“This slows down the entire local economy that depends on the government departments as a key economic actor,” decried the chairman.
Meanwhile, Ronald has also revealed that the council’s financial health is under severe strain, a situation which he said requires both our immediate focus and our collective wisdom.
“We began this year with an approved budget of P236 673 550.00. However, the reality we are facing today is far more challenging. We find ourselves in a position where we have already spent P135 108 547.75. Critically, high expenditures include unbudgeted items like wages for temporary health cleaners (P1 789 339.34) and security services at clinics (P1 603 462.20), for which we still await Ministry funds.,” revealed the chairman.
He continued, “These are essential services, our people are working, but the funding from the Ministry we were counting on has not yet materialized, leaving us to carry this heavy burden. Other high spending votes include repairs to vehicles, petrol & lubricants and relief of destitute”
Ronald added that this financial situation is worsened by poor own-source revenue collection, which is at only 27.5% of our target. Furthermore, he indicated that they have an outstanding Revenue Support Grant of P96.8 million for the third and fourth quarters yet to be received.
He added that against their current recurrent bank balance of P16 824 345.13, they have outstanding commitments of over P17 141 160.65 for salaries and invoices, including other obligations like SmartSwitch and VDCs.
“We risk falling behind on payments to our suppliers, we may even struggle to maintain our vehicles and infrastructure, and ultimately, the very operations of this Council are at risk” lamented the council chairman who called for the situation to be addressed with the urgency it deserves.
On a separate issue, Ronald has complained that as the new ploughing season gets underway, there is no official communication regarding the distribution of seeds, fertilizers, or draught power payments regarding the Temo Letlotlo Program.
“Our farmers are standing in their fields, ready to work, but they are being left in the dark. While components like fencing and irrigation are progressing, the very core of the program, the inputs needed to plant a crop is mired in silence,” he complained.
Furthermore, Ronald added that critical supports like the tractor packages and the horticulture subsidy remain suspended due to a national shortage of funds. He noted that this delay and uncertainty threaten to cripple the upcoming agricultural season before it has even properly begun.
“It means lower planting rates, reduced harvests, and increased food insecurity for our district. We should make an immediate representation to the relevant Ministry to demand clarity and the timely release of these vital inputs in order to advice our farmers from an informed position,” he concluded.
