Security company overbills municipality by N$1,2 million
Costly error
The municipality of Walvis Bay overpaid a security company by more than N$1 million for services rendered for a period of five months.
Due to an alleged administrative error from a security company’s side, and an alleged oversight from finance officers at the Walvis Bay municipality, the municipality overpaid the company by over N$1,2 million.
Now the company has to pay back the money and those staff members involved in allowing this mistake are facing disciplinary charges.
In June last year, the municipality’s procurement committee approved to have Omle Security Services guards at council properties, as well as render ad hoc security guard services. In February this year it came to light that incorrect invoices were submitted by the security company, which resulted in overpayment made by the council. An investigation was launched.
According to council minutes, with the discovery of the incorrect invoicing for ad-hoc security guard servicers rendered, it became clear that the company billed the council incorrectly for five months – from August to December 2021.
From the respective invoices it was deduced that the hours billed for ad-hoc security services rendered represented double-billing.
“Guards were recorded as performing 24-hour shifts instead of 12-hour-shifts,” read the council minutes, adding that the council was overbilled to the amount of N$1 244 976.
These discrepancies were allegedly not noticed by responsible officials at the time of the invoice submission, which resulted in council paying these erroneous invoices and which now represents and overpayment.
In February the council demanded an explanation from Omle Security Services, to which the company responded in a letter through its legal representative that besides the overpayment, the company was awaiting payment from the council for services rendered during January – which allegedly was held back.
The company however acknowledged the “erroneous and accidental” overbilling to the council, and it was agreed that it pay the council back N$70 000 a month until June next year.
“It is accepted that the overbilling can be attributed to administrative errors from both council’s side, and that of officials of the client,” the minutes stated.
It was also resolved by the harbour town’s council that the finance department effect the overdue payments to Omle Security for the months of January to March, and that disciplinary charges be constituted against the staff members involved with the administrative oversight regarding the erroneous overbilling. Attempts to get a comment from Omle Security Services were not successful at the time of going to the printers.
Now the company has to pay back the money and those staff members involved in allowing this mistake are facing disciplinary charges.
In June last year, the municipality’s procurement committee approved to have Omle Security Services guards at council properties, as well as render ad hoc security guard services. In February this year it came to light that incorrect invoices were submitted by the security company, which resulted in overpayment made by the council. An investigation was launched.
According to council minutes, with the discovery of the incorrect invoicing for ad-hoc security guard servicers rendered, it became clear that the company billed the council incorrectly for five months – from August to December 2021.
From the respective invoices it was deduced that the hours billed for ad-hoc security services rendered represented double-billing.
“Guards were recorded as performing 24-hour shifts instead of 12-hour-shifts,” read the council minutes, adding that the council was overbilled to the amount of N$1 244 976.
These discrepancies were allegedly not noticed by responsible officials at the time of the invoice submission, which resulted in council paying these erroneous invoices and which now represents and overpayment.
In February the council demanded an explanation from Omle Security Services, to which the company responded in a letter through its legal representative that besides the overpayment, the company was awaiting payment from the council for services rendered during January – which allegedly was held back.
The company however acknowledged the “erroneous and accidental” overbilling to the council, and it was agreed that it pay the council back N$70 000 a month until June next year.
“It is accepted that the overbilling can be attributed to administrative errors from both council’s side, and that of officials of the client,” the minutes stated.
It was also resolved by the harbour town’s council that the finance department effect the overdue payments to Omle Security for the months of January to March, and that disciplinary charges be constituted against the staff members involved with the administrative oversight regarding the erroneous overbilling. Attempts to get a comment from Omle Security Services were not successful at the time of going to the printers.
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