SABC audit report 'shocks' Cosatu

"Cosatu is disturbed and shocked by Terence Nombembe's report on the SABC," Congress of SA Trade Unions (Cosatu) spokesman Patrick Craven said in a statement.

"He [Nombembe] has given the worst possible audit opinion - a disclaimer - because he could not obtain sufficient [and] appropriate audit evidence," Craven added.

In the 2013 annual report tabled in Parliament on Tuesday (10 September), Nombembe cited financial mismanagement and inadequate controls as reasons for the disclaimer.

A disclaimer is issued if the Auditor-General cannot form an opinion and thus declines to present an opinion about an entity's financial statements.

Nombembe's found the SABC was unable to provide documentation to account for more than R1.5bn in expenditure.

Financial mismanagement

"I was unable to obtain sufficient, appropriate audit evidence for journals processed for broadcasting cost, signal distribution and linking cost, marketing cost, professional and consultancy fees and other expenditure, which in total amount to R1,588,929,000, as supporting documentation could not be provided," Nombembe said.

He said that in addition, the SABC failed to adhere to the laws governing taxpayers' money.

Cosatu welcomed an announcement by Communications Minister Yunus Carrim in Parliament on Tuesday that he had established a task team to strengthen financial controls at the public broadcaster.

"Cosatu believes that the SABC's crisis is structural. It has been plagued by seemingly intractable governance crises at both management and board levels since 2007," Craven said.

The SABC's dependence on advertising revenue and sponsorships had led to its failure to adequately play the role of a public broadcaster.

Cosatu supported an African National Congress resolution at its Mangaung elective conference last year to increase government funding to turn the SABC into the authentic voice of the South Africans.

Source: Sapa via I-Net Bridge