The financial health of State-owned Entities (SoEs) regressed in the 2016/17 financial year, "most often as a result of inadequate controls, monitoring and oversight", according to the Consolidated Report on National and Provincial Audit Outcomes released on Wednesday. Six of the 25 SoEs audited by the constitutionally established Office of the Auditor-General failed to submit annual financial statements as required by law. "The outcomes are likely to be even worse once the outstanding audit results are included," said the report, which shows how SoEs that are meant to deliver services and infrastructure instead pose risk. By MARIANNE MERTEN.
The SABC regressed to an adverse audit opinion as it could not show it was a going concern and was "commercially insolvent" by financial year-end on 31 March 2017. PetroSA and Land Bank Insurance lost their clean audits due to "material non-compliance with legislation". The South African Forestry Company Limited (Safcol) regressed to a qualified audit for not disclosing all irregular expenditure. Broadband Infraco, active in the telecommunications sector, lost its clean audit, as did Air Traffic Navigation Services.
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