Compensation Fund admits to R1bn in irregular spend, despite a lack of audit data
THE Compensation Fund, by its own admission, spent R1bn irregularly last year but the auditor-general was not able to confirm this figure, "as the entity did not maintain proper records and adequate systems of internal control".The fund also notched up R404m (from R17m the previous year) in fruitless and wasteful expenditure, mainly due to breach of contract with a debt collector who obtained an order of court.In the notes to the fund’s 2015-16 annual financial statements tabled in Parliament, the fund disclosed that it received 316 notices of motion and court summonses and, as a result, was exposed to about R310m, admittedly lower than the previous year’s R780m exposure.The auditor-general had to issue a disclaimer on the fund’s financial statements for 2015-16 as there was insufficient appropriate audit evidence to form an audit opinion. The lack of audit evidence covered a host of matters including revenue and records of benefits. The auditor-general also highlighted a lack of in...
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