Sanral reveals it pays R20m a year to external audit companies

The state agency's top executives are appearing before Parliament's standing committee on public accounts to explain its wasteful spending identified by the Auditor-General.

FILE: SANRAL Acting CEO Koos Smit. Picture: nra.co.za.

CAPE TOWN - Roads agency Sanral has revealed in Parliament that it’s paying R20 million a year to external audit companies to help with its books.

The state agency's top brass, including Transport Minister Dipuo Peters, are appearing before Parliament's standing committee on public accounts to explain irregular, fruitless and wasteful expenditure identified in the recent Auditor-General's report.

Members of Parliament (MP) have questioned how Sanral’s internal audit committees failed to detect transgressions, which led to R1,1 billion in losses in the previous financial year.

Economic Freedom Fighters MP Veronica Mente-Nqweniso led the charge against Sanral, telling management it has lax measures in place to deal with maladministration.

She’s demanding that officials be held accountable.

“You are dragging your feet until you’re told what to do. You are not disciplining anyone and everyone is taking money, everyone does not follow procedure and there’s nothing happening with that.”

The African National Congress’ Mnyamezeli Booi shared the same concerns, saying internal audits were “very weak”.

Sanral management has acknowledged that it needs to improve its internal processes, but adds several officials are being disciplined for transgressions.