Stern warning from AG on audits

SIYABONGA MKHWANAZI

THE AUDITOR-GENERAL, Kimi Makwetu, has issued a stern warning to accounting officers that they face being hit hard in the pocket if they fail to implement his recommendations on corruption in the amended Public Audit Act.

The law is being finalised in Parliament and Makwetu said one of the enforceable measures is to hit accounting officers with personal costs if they do not act on his recommendations within 12 months.

“You will now face a certificate of debt, which will make you pay a staggering amount of money,” he said. He said the amendment was a powerful arsenal to prevent irregular expenditure. The first measure would be to give them six months to act on corruption, but after this his recommendations become binding and the officials have to act within the next six months. The measures are contained in the legislation undergoing final stages in Parliament and is expected to be concluded in the House by the end of the month.

Speaking to Independent Media, Makwetu said the amendments to the Public Audit Act will strengthen the powers of his office.

“It will go both ways, where I boxed in the Public Finance Management Act and Municipal Management Act, where I put the fiduciary responsibility of accounting officers,” said Makwetu. “The message for us is that if you give us extended powers it will allow space to act on accounting officers to follow up on recommendations within six months,” he said.

These measures were intended to reduce the ballooning irregular expenditure, which escalated from R11 billion in 2008/2009 to R46.6bn in 2016/17. Makwetu said irregular expenditure will shoot up to R60bn this year after they have included irregular expenditure incurred by the Passenger Rail Agency of South Africa.

“What we are saying is that as the accounting officer you should have done something in six months. We then say let’s look at what has happened after six months. It’s about those material irregularities during the audit. The advantage for us is that we are there every financial year,” said Makwetu. The act, as it stands, says the auditor-general, must audit the books of departments and state-owned entities and report.

“If by 12 months that remedial action is not investigated that material irregularity will be referred for an investigation,” he said.

They were strengthening the law because officials knew in the past that despite recommendations from him they would not act as there were no consequences. They simply ignored his recommendations.

This is despite serious findings that are contained in his reports on irregular expenditure.

“No one gets hauled over the coals. Everyone falls in the bandwagon,” he said.