Only 47% of SOEs received unqualified audits

Auditor General, Kimi Makwetu, the negative trend in audit outcomes for states owned enterprises can be attributed to inadequate controls, monitoring and oversight.

FILE: Auditor-General (AG) Kimi Makwetu. Picture: GCIS

CAPE TOWN - Audit outcomes of state-owned enterprises continue to show a negative trend.

Auditor-General Kimi Makwetu says this can be attributed to inadequate controls, monitoring and oversight.

Over the past financial year, 47% of state-owned companies delivered unqualified audits with findings.

Armscor, Land Bank Life Insurance and three SOE subsidiaries (Gammatec NDT Supplies, NTP Radiosotopes and PetroSA Ghana) had improved to a clean audit status.

Petroleum Agency SA and Land Bank Insurance lost their clean audit status due to material non-compliance with legislation.

Makwetu says many outstanding audits were largely among the public entities.

“Their audit outcomes over the four-year period also indicate that the risks of good financial management disciplines are still prevalent. There is no doubt if one looks at these financial reports and their outcomes there are still very significant financial report deficiencies, many of which never get given attention.”

The South African Forestry Company Limited and its subsidiary, Komatiland Forests, did not disclose all irregular expenditure incurred and regressed to a qualified opinion.

Audits of South African Airways and its subsidiaries, except Mango Airlines, South African Express and the Independent Development Trust had not been completed.