Windhoek: Bank of Namibia (BoN) Deputy Governor Nicholas Mukasa emphasized the critical role of internal audits in preventing governance failures during the Bank's Internal Audit Awareness Day. Held in the capital under the theme, 'The Role of Internal Audit in Enhancing Public Sector Governance,' Mukasa highlighted that weak governance and ineffective oversight mechanisms continue to expose institutions to failures that can undermine public trust and economic resilience.
According to Namibia Press Agency, Mukasa referred to the collapse of major institutions such as Lehman Brothers, Credit Suisse, South Africa's Steinhoff Group, and Namibia's SME Bank as illustrations of the severe consequences that can arise from governance failures and inadequate control systems. He stressed that every major institutional failure in history was preceded by warning signs, emphasizing the importance of attentiveness to these indicators.
Mukasa cautioned that governance failures are not exclusive to foreign markets and can occur within local institutions if accountability mechanisms are not bolstered. He pointed out that robust governance systems are increasingly vital as Namibia seeks to capitalize on opportunities from oil and gas discoveries, green industrialization, digital transformation, and regional trade integration.
He described internal audit as an independent assurance function that serves as a foundational element of governance, strengthening accountability, promoting ethical conduct, and ensuring institutional integrity. Mukasa noted that many internal audit functions in developing countries remain underdeveloped, facing challenges related to capacity, resources, and institutional support, which limits their ability to provide early risk insights and independent assurance.
Mukasa further emphasized the necessity of maintaining the independence of internal audit functions through strong audit committees and supportive governance structures. He urged institutions to foster a culture that welcomes difficult questions and constructive criticism as part of enhancing governance systems.
Looking ahead, Mukasa suggested that the internal audit profession must evolve beyond traditional compliance roles to become a strategic partner in organizational performance and governance improvement. He identified legislative strengthening, capacity development, adoption of international standards, digitalization, and stronger collaboration with oversight bodies as key priorities for future-proofing internal audit functions.