Auditor-General Kimi Makwetu says a lack of control, particularly in supply chain management in Gauteng has led to disclaimers in two departments.
He says although Gauteng has performed well, obtaining 100 percent unqualified audits over the years, it is beginning to show worrying trends. Makwetu was speaking after presenting the audit outcomes in Parliament of national government, provinces and state-owned enterprises for the 2018/2019 financial year.
“Gauteng has always had unqualified audits, unfortunately, this year, because of a lack of control in some supply chain, two major departments in that province have slipped back, not only to the qualification, we’ve never had disclaimers there but now we do. We have two disclaimers in Gauteng and it’s a lapse of those basic disciplines and controls and once those controls lapse, then you must know that many people will find loopholes and opportunities to make a way and you discover it a number of months after the payments have been made. So that is the crux of the matter when it comes to Gauteng.
However, Makwetu says the Eastern Cape has shown progress while Mpumalanga has regressed, after years of performing well and obtaining 100 percent unqualified audits.
He says the Northern Cape has regressed further while the North West has not regressed and Limpopo has improved.