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Scopa questions Prasa board's effectiveness after audit disclaimer

Auditor-General Kimi Makwetu found Prasa’s books were too disorganised to even audit and so the agency was slapped with a disclaimer.

FILE: Prasa’s new interim board on 28 May 2018 embarked on a tour of Metrorail facilities in Johannesburg. Picture: Thando Kubheka/EWN

CAPE TOWN - The Passenger Rail Agency of South Africa (Prasa) has come under intense scrutiny in Parliament.

This followed a disclaimer by the Auditor-General, which was the worst possible audit outcome.

The agency was the topic of discussion in two separate meetings in the National Assembly on Wednesday.

Auditor-General Kimi Makwetu found Prasa’s books were too disorganised to even audit and so the agency was slapped with a disclaimer.

Prasa’s abysmal financial situation was discussed during Wednesday’s appropriations committee meeting, where an official from the Auditor-General’s office Polani Sokombela told MPs the entity had serious liquidity issues.

He said Prasa had regressed in its audit outcomes with its irregular expenditure balance at R27 billion.

“We are very disappointed because Prasa has regressed in its audit outcomes. Prasa has been disclaimed in the 2018/2019 financial year.”

Scopa chairperson Mkhuleko Hlengwa has also questioned the functionality of the organisation’s board.

“Because the issue of record-keeping then, which has been raised by the AG, cuts way beyond the issue of the minutes because it speaks to the question of if the board is functional.”

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