'Complete mismanagement' of assets at department of defence

The department of defence has again received a qualified audit opinion‚ with the auditor-general finding there was complete mismanagement of its assets.

The department oversees the South African National Defence Force‚ which is responsible for defending SA against external military aggression and plays a key role in peacekeeping missions in Africa.

It has‚ over the years‚ been hit with a string of negative audit reports‚ ranging from qualified to disclaimer‚ which is the worst possible audit outcome. The department received a qualified audit in the previous financial year‚ after submitting error-ridden financial statements and incurring more than R400-million in irregular spending.

The department has a budget of about R48-billion for the 2018/2019 financial year‚ down from R49-billion allocated in 2017/2018. It has said it requires more money to avoid losing more of its essential capabilities.

In the department’s annual report‚ tabled in Parliament this week‚ auditor-general Kimi Makwetu said he was unable to obtain sufficient appropriate audit evidence for capital assets as the department did not disclose capital work-in-progress for capital projects.

"Consequently‚ I was unable to determine the full extent of the nondisclosure as it was impracticable to do so."

- Business Day