Auditor-general Kimi Makwetu raises red flag on Denel audit by SizweNtsalubaGobodo
Auditor-general insisted irregular spending be flagged in the audit opinion, while SNG says it had a disagreement with Denel over the issue
Auditor-General Kimi Makwetu has advised Parliament’s public enterprises committee not to rely on the annual report of state-owned arms manufacturer Denel “as it is incorrect”. The controversy around the audit of the company has once again highlighted concern about the independence of auditors and the credibility of other audits of state-owned enterprises. Denel tabled the annual report in Parliament in defiance of a warning by SizweNtsalubaGobodo (SNG) — the auditor appointed by Makwetu to undertake the audit. SNG warned that the audit report did not accurately account for irre-gular expenditure. SNG had been told by the auditor-general that its clean audit opinion of Denel “was not supported by the evidence” and amended it when the auditor-general suggested that it reconsider its opinion. Denel resisted this amendment. As a result of the amended audit opinion, Denel’s clean audit became an unqualified audit with concerns over irregular expenditure. Public Enterprises Minister Lynn...
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