SABC gets worst audit opinion

2013-09-10 17:19

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The SABC was dealt a blow when it received a disclaimer of opinion for 2012/13, the worst audit opinion, from the Auditor-General (AG).

A disclaimer is issued if the AG cannot form an opinion and thus declines to present an opinion on an entity’s financial statements.

In the SABC’s 2013 annual report, which was tabled in Parliament today, AG Terence Nombembe cites financial mismanagement and inadequate controls as reasons for the disclaimer.

Nombembe’s findings in his audit report include the SABC spending more than R1.5 billion, and not being able to provide corresponding documentation on what the money was used for.

“I was unable to obtain sufficient, appropriate audit evidence for journals processed to broadcasting cost, signal distribution, and linking cost, marketing cost, professional and consultancy fees and other expenditure ... which, in total amount to R1 588 929 000, as supporting documentation could not be provided,” Nombembe said.

In addition, the SABC also failed to adhere to the laws governing taxpayers’ money.

“Irregular expenditure to the amount of R106 322 000 was incurred, as proper tender processes had not been followed.”

It also emerged that the broadcaster had procured goods and services through unfair and untransparent means.

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