ANC welcomes Eastern Cape Provincial Government audit outcomes

OCTOBER 12, 2016

The ANC Caucus has noted the Audit Outcomes of the Eastern Cape Provincial Government as presented by the Auditor General to the Eastern Cape Provincial Legislature on the 11th of October 2016.

"The positive improvements are indicative of the ANC-led government at work to ensure good governance of the state and its entities," said Mzoleli Mrara, ANC Chief Whip in the Eastern Cape Provincial Legislature.

Of the 25 auditees, 8 received clean audits. It is pleasing to note that the Department of Safety and Liaison, EC Gambling and Betting Board, as well as ECSECC received their second clean audits; and five auditees improved their status from being unqualified with findings to clean audit.

Mrara commended the Provincial Government leadership on the Auditor General’s finding "that there were no disclaimers or adverse opinions for the third consecutive year. Furthermore, The AG has found that irregular expenditure within Provincial Government has decreased considerably from R2,551 Billion in 2013-14, to R1,24 Billion in 2015-16. This indicates a significant improvement in internal controls and accounting disciplines that support accountability and credible reporting”.

The report further states that the quality of financial statements submitted for audit have improved progressively over the past three years: 60% of the financial statements submitted in 2013-14 contained material misstatements compared to only 32% in 2015-16.

The AG attributes this positive outcome to improvement in controls brought about by the implementation of the recommendations made during the regular AGSA interactions on internal controls.

The Chief Whip further “encourages the Department of Education where instability in leadership and lack of accountability and good governance have had an adverse effect on the audit outcome, to implement measures to improve its performance”.

"The 2015-16 audit outcomes have displayed a concerted effort by our leaders of Provincial Government to improving accountability with an objective of building public confidence in the ANC-led government," he said.

"The report further depicts the dedication of the Members of Provincial Legislature to vigorous oversight in ensuring good governance in the public service."