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Parliament warns Ingonyama Trust ‘not above the law’ amid poor audit outcomes

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Parliament has warned the Ingonyama Trust Board (ITB) that it is not above the law. The ITB appeared before the Portfolio Committee on Agriculture, Land Reform, and Rural Development to respond to findings of failure to disclose irregular expenditure of about R2 million.

This was revealed by the Auditor-General’s (AG) annual report for the 2019/20 financial year.

The AG earlier stated that at the heart of the financial challenges is the entity’s inability to improve its poor audit outcomes over the years.

The Trust is the biggest landowner in KwaZulu-Natal and King Goodwill Zwelithini is the sole trustee. The entity has been criticised in some quarters for its failure to uplift communities living on the land it owns.

Last year, an investigation was launched to probe its financial affairs. Board Chairperson and former Judge Jerome Ngwenya did not mince his words disputing all the findings of the AG with regard to irregular expenditures.

“We are saying in our response honourable chairperson and honourable members, that it is incorrect because they say the total amount that was not disclosed is R2.4 million. We are saying we have disclosed R943 824 which the auditor general does not talk about. But instead, what they do -they have these amounts which were disclosed to the previous year’s findings.”

But members of the committee came to the defence of the AG and told Ngwenya and his team that it is not the responsibility of the Trust to second-guess the work of the AG.

Sam Matiase from EFF benches insisted that the Trust must take the office of the AG seriously.

“The office of the Auditor-General is the supreme office which is part of the Chapter Nine institutions and its opinion reigns supreme. So, it is important that we underscore that even if we were to consider patiently sympathising with the disclaimer made by Professor Ngwenya.”

African National Congress Member of Parliament, Ndumiso Capa warned the Ingonyama Trust not to undermine the work of the AG.

“On the side of the Trust, I would have expected two things. May I want to explain those two things? One were they able to satisfactorily explain to the Auditor General these findings? Then secondly, are they able to indicate that they intend to correct what has been found by the Auditor General?”

But Ngwenya stood his ground. “This is what the Auditor General said, the Trust is not required to prepare a report on its performance and it does not have to comply with the Public Finance of South Africa Act number of 1999, and such reporting cannot be required in terms of the entities specific … and this is what the AG said.”

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