MPs may help by boosting auditor’s powers

Parliament’s standing committee on the auditor-general expects to kick off its assessment and review of the powers of the auditor-general as soon as August, while calls grow for the supreme audit institution to be given power to enforce its recommendations.

While releasing the consolidated audit outcomes of SA’s 263 municipalities last week, auditor-general Kimi Makwetu flagged “consequence management” as a decisive weakness in the quest to get councils’ finances in order.

In 2016, the office conducted research that involved studying supreme audit institutions around the world, to find solutions on how to give the office of the auditor-general sharper enforcement teeth in line with the Constitution.

At present, the office is animated by the Public Audit Act, the Public Finance Management Act and the Municipal Finance Management Act. While these laws outline harsh penalties for accounting officers responsible for mismanagement and maladministration, they do not empower the auditor-general to ensure his recommendations aimed at stemming these practices are followed.

KIMI MAKWETU FLAGGED ‘CONSEQUENCE MANAGEMENT’ AS A DECISIVE WEAKNESS

Committee chairman Vincent Smith said that in less than two months, the committee expected the auditor-general to return with revised recommendations, after which the committee would begin the process.

He said various options in terms of legislative adjustments would be considered when the auditor-general briefed Parliament again. The committee would follow this up by hearing from sectors of society.

“I’m open-minded .... An important question on some people’s mind would be why the auditor-general recommendations are not binding like the public protector. There are modalities to look into. It can’t have a situation where there are recommendations in the auditor-general’s report and that’s where it dies,” he said.

DA MP in the portfolio committee for co-operative governance and traditional affairs Kevin Mileham said the only way in which the government could expect to see an improvement in audit outcomes was if it put paid to a lack of consequences for mismanagement and maladministration by accounting officers.

The Municipal Finance Management Act “makes it clear that anyone responsible for bad expenditure, the municipality must recover those funds. There are significant consequences to allow for action to be taken, but there must also be political will,” said Mileham.