ACDP says concerned at general regression of audit outcomes at SOEs

October 11, 2018

JOHANNESBURG - The general regression of audit outcomes as well as the rapidly increasing irregular expenditure at some state-owned enterprises (SOEs) as disclosed by the Auditor-General is concerning, the African Christian Democratic Party (ACDP) has said.

The AG reported that irregular expenditure, mainly at state power utility Eskom and logistics firm Transnet, had increased from R4.976 billion in the 2016/2017 financial year to R27.746 billion for 2017/2018 due to graft.

'The ACDP is also deeply concerned at the general regression of audit outcomes of the SOE’s accountable to the public enterprises portfolio committee,' said ACDP legislator Steve Swart, a member of parliament's public enterprises portfolio committee.

'To make matters worse, the financial statements of Safcol, SA Express, the SAA and Denel groups are yet to be tabled, mainly due to the ‘going concern” status of these entities.'

Swart said the AG's office should acquire more powers to ensure its findings were complied with and steps taken against accounting officers and officials who continually flouted tender and procurement regulations.

Additionally, parliamentarians serving on oversight portfolio committees must be provided with management records from the AG’s office to monitor issues of non-compliance and hold management and board members of state firms accountable, he added.