{"id":28486,"date":"2022-04-02T19:15:02","date_gmt":"2022-04-02T19:15:02","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/mbalula-and-auditor-general-at-odds-over-delayed-raf-audit-report"},"modified":"2022-04-02T19:30:29","modified_gmt":"2022-04-02T19:30:29","slug":"mbalula-and-auditor-general-at-odds-over-delayed-raf-audit-report","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/mbalula-and-auditor-general-at-odds-over-delayed-raf-audit-report","title":{"rendered":"Mbalula and Auditor General at odds over delayed RAF audit report"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Auditor<\/p>\n

General Tsakani Maluleke has written to National Assembly Speaker Nosiviwe<\/p>\n

Mapisa-Nqakula, telling Parliament that she submitted the Road Accident Fund’s<\/p>\n

(RAF) audit report for the 2020-21 financial year, despite the fund going to<\/p>\n

great lengths to prevent its publication.<\/p>\n

However,<\/p>\n

Minister of Transport Fikile Mbalula said in his own letter that he could not<\/p>\n

table the RAF annual report and financial statements, because of changes in the<\/p>\n

entity’s accounting policy where it relates to claims liabilities.<\/p>\n

In<\/p>\n

June last year, the RAF announced that it cut its<\/p>\n

liabilities by over R300 billion by<\/p>\n

simply changing an accounting policy.<\/p>\n

The<\/p>\n

change dealt with the International Financial Reporting<\/p>\n

Standards (IFRS) the RAF was using, specifically how it dealt with insurance<\/p>\n

contracts.<\/p>\n

But<\/p>\n

in her letter to Nqakula, Maluleke said her office evaluated the change in<\/p>\n

accounting policy and concluded that it was inappropriate.<\/p>\n

In<\/p>\n

February the North Gauteng High Court in Pretoria dismissed a case by the RAF<\/p>\n

to prevent the publication of the audit report.<\/p>\n

Road Accident Fund loses urgent bid<\/p>\n

to prevent publication of Auditor-General report<\/p>\n

“RAF<\/p>\n

has embarked on a litigation process to prevent me from making this audit<\/p>\n

report public and seeking an order to set aside my audit report. The first part<\/p>\n

of the order seeking an interdict to prevent me from making the audit report<\/p>\n

public, was heard and dismissed by the Gauteng High Court,” said Maluleke.<\/p>\n

Maluleke<\/p>\n

said the RAF applied for leave to appeal that judgment and sought to review the<\/p>\n

audit report in what she says has been a protracted, delayed process.<\/p>\n

“At<\/p>\n

the date of signing this correspondence, I am advised that there is nothing in<\/p>\n

law preventing me from publishing the audit report, if not tabled by the<\/p>\n

executive authority,” Maluleke said.<\/p>\n

The<\/p>\n

submission of an annual report complete with financial statements and an audit<\/p>\n

report is a legal requirement for organs of state in terms of the Public<\/p>\n

Finance Management Act within the conclusion of that annual report’s respective<\/p>\n

year by the end of March. The tabling of the final report in Parliament is done<\/p>\n

by the minister, as a member of the legislature.<\/p>\n

Citing<\/p>\n

the PFMA read with the Public Audit Act (PAA), Maluleke said if an audit report<\/p>\n

is not tabled in Parliament within a month after its first sitting after an<\/p>\n

Auditor General submits it, the Auditor General must promptly publish the<\/p>\n

report.<\/p>\n

She<\/p>\n

said she wrote to RAF management indicating to them that the PFMA and PAA<\/p>\n

required her to release the audit report, to which RAF management replied that<\/p>\n

they had already written to Parliament explaining the reasons for the delay.<\/p>\n

“I<\/p>\n

noted the response from the executive authority, however, the PAA requires me<\/p>\n

to publish the audit report if not tabled and I am advised that I do not have a<\/p>\n

legal basis for not publishing the audit report.<\/p>\n

“As<\/p>\n

such, I will not be exercising the discretionary powers to issue a special<\/p>\n

report on the delay as stated in section 65 of the PFMA as there is no legal<\/p>\n

basis for the delay. More so since the court has stated that there is no basis<\/p>\n

for the audit report not to be made public,” said Maluleke.<\/p>\n

Why a simple accounting change may<\/p>\n

have slashed the Road Accident Fund’s liabilities by R300bn<\/p>\n

However,<\/p>\n

Minister of Transport Fikile Mbalula wrote in his own letter to the speaker<\/p>\n

that the RAF advised him that it was unable to comply with the PFMA to submit<\/p>\n

its annual report and audited financial statements to him for tabling in<\/p>\n

Parliament.<\/p>\n

“The<\/p>\n

Accounting Authority contends that the dispute with the Auditor-General,<\/p>\n

currently before the courts, has a material effect on its ability to meet the<\/p>\n

requirements of section 55 of the PFMA.<\/p>\n

“Section<\/p>\n

55 of the PFMA requires that the annual report and financial statement tabled<\/p>\n

before Parliament must fairly present the state of affairs of the public<\/p>\n

entity, its business, its financial results, its performance against<\/p>\n

predetermined objectives and its financial position as at the end of the<\/p>\n

financial year concerned. In the light of the above, I am therefore unable to<\/p>\n

table the annual report, annual financial statements, and the audit report of<\/p>\n

the Road Accident Fund at this stage,” said Mbalula.<\/p>\n

Mbalula<\/p>\n

maintained that a review application was before the courts and that “the<\/p>\n

outcome may materially affect the content and the conclusions of the<\/p>\n

report”.<\/p>\n

The<\/p>\n

RAF has been hit with financial and governance challenges over the years, with<\/p>\n

only one clean audit in the last five financial years. Its 2020-21 audit<\/p>\n

outcomes are unaccounted for as the audit could not be finalised.<\/p>\n

Get the biggest business stories<\/b><\/p>\n

emailed to you every weekday.<\/p>\n

Go to the<\/b><\/p>\n

Fin24 front page.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Auditor General Tsakani Maluleke has written to National Assembly Speaker Nosiviwe Mapisa-Nqakula, telling Parliament that she submitted the Road Accident Fund’s (RAF) audit report for the 2020-21 financial year, despite the fund going to great lengths to prevent its publication. However, Minister of Transport Fikile Mbalula said in his own letter that […]<\/p>\n","protected":false},"author":84,"featured_media":28485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,8,12],"tags":[274,315,1245,1244,1243,503,1246,1248,163,554,1247,275,1242],"class_list":["post-28486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-homepage-english","category-policy","tag-africa-press","tag-africa-press-south-africa","tag-annual-report","tag-audit-report","tag-auditor-general","tag-fikile-mbalula","tag-financial-statements","tag-north-gauteng-high-court","tag-parliament","tag-pretoria","tag-road-accident-fund","tag-south-africa-2","tag-tsakani-maluleke"],"yoast_head":"\nMbalula and Auditor General at odds over delayed RAF audit report - South Africa<\/title>\n<meta name=\"description\" content=\"Auditor General Tsakani Maluleke has 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