There needs to be a culture of accountability with money in govt - AG

JOHANNESBURG - The Auditor General (AG) says there needs to be a culture of accountability in government to improve the handling of public money.

Since 2019, the AG’s office has found 626 material irregularities in local, provincial and national government departments, amounting to a potential financial loss of over R21 billion.

Material irregularities are instances where there is a clear case of non-compliance with financial controls resulting in financial loss.

A material irregularity is the strongest form of remedial action that the Auditor General can issue.

It officially came into effect in 2019 to deal with rampant mismanagement of public funds.

The country’s AG, Tsakani Maluleke spoke at the national press club earlier on Thursday, reflecting on the five years of these expanded powers.

Maluleke said the bigger goal was to create a culture change in public institutions.

“Where the vast majority of them have cultures within them, systems, disciplines, processes that make for effective delivery of their mandate in a transparent and accountable way informed by ethical conduct, internal controls, proper risk management that then contributes to institutional integrity.”

Maluleke said she was concerned with the low compliance rates from accounting offices to the remedial action ordered by the AG.