Increase in pushbacks delaying reports, says auditor-general

Auditor-general Tsakani Maluleke described her first year in office as a baptism of fire when she addressed the SA National Editors Forum (Sanef) on Saturday.

She has been at the helm of the auditing institution for a year and two months and said  Covid-19 had increased her office’s workload.

“Although I am not new to the organisation, my first year in office has been nothing short of eventful, to say the least — a baptism of fire in the most important ways,” Maluleke said.

“In my first year, we tabled five reports instead of the traditional two, all thanks to the hardworking men and women who make up (my team). Three of these were Covid-19 special reports that have kept us busy. In short, this has been an extraordinary and particularly taxing year.”

Maluleke said her office aims to influence a “culture change and to effect the necessary behavioural and organisational changes”.

“I would like our auditees to introduce a culture that enables them to be more responsive to what needs to be done to use public resources more prudently, effectively and efficiently,” she said.

South Africans were “growing increasingly restless and impatient”, she said. “We must be more prudent with public funds, hold each other more accountable, ensure we implement consequences for mismanagement and wastage, prevent linkages and impact people’s lives.”

Maluleke thanked the media for ensuring her office’s reports are widely communicated. “I was particularly pleased by the extent to which the media used our reports as a reference point during the 2021 local government elections,” she said.

“I want to assure you of our unreserved appreciation for that and for doing your work diligently and without fear and favour.”

Maluleke said amendments to the Public Audit Act mean the auditor-general can enforce accountability but this is not without challenges.

“On the other side, we are seeing an increase in pushbacks which ultimately delay finalisation of audits and in some cases, are ventilated in courts, which is not the ideal place for audit matters,” she said.

“We have in place a dispute-resolution mechanism with relevant oversight structure such as the National Treasury. Admittedly, these do not always work, but we think that in time, we will be able to enhance this mechanism so that it is able to deliver value.”

However, she said her office had achieved significant progress and had asked for investigations into unresolved material irregularities involving the Northern Cape health department, the department of defence, the SA Post Office, Matjhabeng local municipality in the Free State and the Free State Development Corporation.

“We have been clear from the start that we will not hesitate to implement our expanded powers if accounting officers and authorities do not respond to the material irregularities with the required urgency,” she said.

“In 2021, we issued our first remedial actions to the accounting officers/authorities of the Passenger Rail Agency of SA, the department of defence and the Free State department of human settlements.

“The remedial actions issued to the two departments included a directive to deal with the financial loss by the stipulated date, which, if not implemented, could result in a certificate of debt being issued. This is the last step of the much talked about certificate of debt.

“We also referred three material irregularities for investigation to the Hawks — one each for the department of defence, the SA Post Office and the Free State Development Corporation. We also included recommendations in the audit report of the Free State Development Corporation to resolve certain aspects of material irregularity that will not be dealt with by the Hawks.”

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