The embattled Department of Communications (DOC) obtained a clean audit for the financial year ended March, reveals the office of the Auditor-General of SA.
The communications department, which is led by minister Faith Muthambi, has faced public backlash on a number of issues, such as the delay of SA's digital migration project, proposed patriotism in news reporting about government, as well as the public broadcaster's management affairs.
Muthambi has also been drawn into a legal battle with Etv over the technical specifications of set-top boxes (STBs) to be used for the switch from analogue to digital terrestrial television.
In addition, the communications minister has had to fend off criticism from members of the African National Congress on the issue of STBs for digital migration.
Despite these issues, the DOC and two of its entities, the Government Communication and Information System (GCIS) and Brand SA, achieved clean audits.
Promise Buthelezi, a senior manager at the auditor-general, says the outcomes of the department are commendable and its entities are making an effort to maintain clean audits.
According to Buthelezi, departments or entities are regarded to have obtained a clean audit opinion based on the reliability of their financial statements, the reliability of their information regarding their pre-determined objectives, and compliance with key legislation in accordance with the Public Finance Management Act.
"I would like to commend and congratulate GCIS for maintaining their clean audit. The newly established DOC also obtained a clean audit, which is very good," he notes.
Buthelezi says Brand SA, which previously had one compliance issue on its supply chain management, also showed a lot of improvement. "They made sure they eliminate the material non-compliance, so they also received a clean audit opinion."
A for effort
Other entities that report to the DOC include the Independent Communications Authority of South Arica (ICASA), the South African Broadcasting Corporation (SABC), Film and Publication Board (FPB) and the Media Development and Diversity Agency (MDDA).
Buthelezi notes three entities ? ICASA, MDDA and the FBP ? received financially unqualified audits with findings, while the SABC received a qualified audit opinion with findings.
He states that one concern among these entities is the issue of prevention of irregular, fruitless and wasteful expenditure.
Muthambi says the DOC is implementing several measures to address the auditor-general's previous concerns.
"The... [issue] that the AG audited in the past was the use of consultants. When it comes to the 2015/16 financial year, you will see the DOC has implemented and achieved its planned target and then there is a clean audit.
"The audit was achieved with only 65 employees. We are supposed to have 400 employees. Due to a lack of funding, we are currently sitting with 65 employees," says the minister.
Coming up short
Problem child, the SABC, could not prevent irregular, fruitless and wasteful expenditure, according to Buthelezi.
He says the public broadcaster also came up short when it presented statements with overstated amounts in some instances, and understated ones in other instances.
The SABC could also not provide supporting evidence on the expenditure incurred, he adds.
"A three-year comparison into the SABC's performance shows there has been a reduction in the number of qualifications.
"In 2013/14, the SABC sat with seven issues that led to it being given a qualified audit: irregular, fruitless and wasteful expenditure; TV licence and related incentives; taxation; property, plant and equipment; and mobile income, among others.
"Those were reduced to three in the 2014/15 financial year, with findings on irregular, fruitless and wasteful expenditure, TV licence and taxation issues remaining unresolved.
"In the current year under review, the SABC is only left with one qualification - which is irregular, fruitless and wasteful expenditure.
"I think one major issue we have in the reduction of the qualifications is through the use of consultants. The problem is that it might be very hard to try to sustain the reduction of qualifications, mainly because we have not obtained sufficient evidence to confirm the internal control status is improving," concludes Buthelezi.
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