A-G: Financial woes at SOEs on the increase
Auditor-General Kimi Makwetu has lamented the increase in financial non-compliance by the country’s state-owned entities.
Makwetu briefed the media on the national and provincial government’s audit results for the 2018/19 financial year in Pretoria on Wednesday.
Makwetu said SOEs have been under immense pressure.
“There were weaknesses in the performance reporting processes and an increase in non-compliance at the 14 SOEs and their significant subsidiaries audited by the Auditor-General South Africa.
“These entities also disclosed R1.4 billion in irregular expenditure, although the amount could be even higher as four SOEs – Denel, the South African Broadcasting Corporation, South African Express Airways and the South African Forestry Company – were qualified on the completeness of their irregular expenditure disclosure.”
ALSO READ: A-G concerned as irregular expenditure increases again
Makwetu said none of the SOEs which were audit achieved clean audits.
"None of the ones we audited obtained a clean audit opinion. The South African Post Office - for example - has slipped back to a qualified opinion and the Development Bank of Southern Africa regressing from a clean audit to a financially unqualified opinion with findings in the year under review".
Makwetu said situation has improved slightly when compared to this time last year.
"Delays were mainly due to financial statements and audits that were delayed because of SEOs struggling to demonstrate that they were going concerns.”