The Rotting Core of South Africa’s Communications Entities
The Auditor-General of South Africa has blown the lid off the rotting core of the country’s communications entities, revealing a web of corruption, mismanagement, and financial irregularities that would make even the most seasoned crook blush.
According to the AGSA’s latest report, seven material irregularities have been identified, impacting four of the communication department’s entities – the State IT Agency (SITA), South African Post Office (SAPO), SABC, and Postbank. These entities are still to officially table their annual reports for the 2024 financial year, but the AGSA’s findings are a damning indictment of the state of affairs.
The AGSA defines material irregularity as any non-compliance with, or contravention of, legislation, fraud, theft, or a breach of a fiduciary duty that results in, or is likely to result in, a material financial loss, the misuse or loss of a material public resource, or substantial harm to a public sector institution or the general public.
Joyce Maki Dangeni, senior auditor at AGSA, revealed that the office identified two material irregularities for each of SITA, SABC, and Postbank, while SAPO had one. The issues range from weaknesses in internal controls at SAPO, resulting in significant financial losses of nearly R90 million, to the theft and misuse of SASSA cards, with estimated financial losses of R30 million.
The AGSA’s findings are a stark reminder of the need for greater accountability and transparency in the public sector. The entities in question must take immediate action to address these material irregularities and prevent further financial losses.
But it’s not just the entities that are to blame. The AGSA’s report highlights the need for stronger internal audit functions and oversight bodies to prevent these types of irregularities from occurring in the first place.
The AGSA’s report is a wake-up call for the government and the public sector as a whole. It’s time to take action and ensure that our public sector institutions are held accountable for their actions. Anything less is unacceptable.
