Auditor-general Kimi Makwetu has proposed amendments to the Public Audit Act to ensure that there are consequences for wrongdoing on the part of government officials and executives of state-owned enterprises.
The proposals were submitted on Friday to Parliament’s standing committee on the auditor-general, which has given them its initial approval.
Makwetu, who highlighted the proposed amendments in an address to the Cape Town Press Club on Tuesday, noted that levels of accountability in government were low and that there were not sufficient consequences for not doing the right thing.
Every year, the auditor-general reports billions of rand in wasteful and irregular expenditure, but few of those responsible are held accountable. Makwetu pointed to a growing trend of irregular financial management with no consequences.
In terms of the proposals, the auditor-general’s office would be able to refer its findings to appropriate investigative agencies such as the National Prosecuting Authority, the Hawks or the public protector. The Public Audit Act does allow for referrals, but the amendments propose that these take place in a more structured way.
Makwetu said it would not be a good idea for the auditor-
general’s office to be given remedial powers as this would require that it be redesigned and acquire prosecutors which might dilute the focus of an independent audit office.
"When we complete our audits we have to have a mechanism where we refer specific matters that have been identified through the audit which point to the prevalence of possible financial abuse. The limitation of an audit is that we select a sample of transactions and reach conclusions on the basis of that sample. If we see there is an inherent risk of financial manipulation of systems, we need to hand it over to an investigating agency who will pronounce if there is wrongdoing."
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