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Auditor General expresses concern over SOE’s audit outcomes

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Auditor General, Tsakani Maluleke has expressed concern about audit outcomes of State-owned Entities saying they’ve regressed.   

SABC and Transnet received qualified audits while state arms manufacturing company, Armscor and Airports Company of South Africa (Acsa) received unqualified audits.  

Only the Development Bank of Southern Africa has received a clean audit.  

Maluleke was briefing parliament on the audit outcomes of both national and provincial government departments as well as SOEs.

“State-owned Entities are a problem of the 21 major public entities listed in schedule 2, 14 of those are audited by the AG SA. What we are seeing is that the audit outcomes are regressing, which is indicative of weaknesses in governance in financial management discipline in performance reporting difficulties and poor compliance of the 7 audits that we completed on time only one had a clean audit that was DBSA.”

Maluleke has described as a good start on accountability, this year’s audit outcomes of both national and provincial government departments as well as state owned entities.

She’s told Parliament there’s 115 clean audits from all the auditees audited by her office.

Maluleke says none of the government departments have received adverse and disclaimers.
Only state-owned entities received such audits.

Maluleke also says these auditees have incurred an amount of R166.86 billion on irregular expenditure.

“115 clean audits that we can register this year across the provincial and national government departments and public entities that’s a good outcome because they represent 27% of the auditees that we are reporting on, but they also represent 19% of the expenditure budget. So, what it tells you is that
of the R1.9 trillion that has been appropriated for the PFMA cycle you’ve got that money 19% held by departments and public entities that can report credible on how they managed those financials.”
 

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