Auditor General concerned about poor financial management at Prasa

September 10, 2018 7:49 pm Published by Leave your thoughts

CAPE TOWN – The Auditor General Kimi Makwetu has expressed concern over the poor financial management at the Passenger Rail Agency of South Africa (Prasa).

It’s almost time for Prasa to table its annual report for the past financial year, but it’s only just managed to submit its financial statements for 2016/17.

Besides the group suffering a loss of almost a billion rand, the Auditor General says he’s also concerned that the majority of the agency’s cash resources are earmarked for capital projects but there’s no money for operations.

Makwetu says there’s a disparity between the allocation of money for capital projects and that for operations.

The current amount allocated to operations is not enough for proper maintenance and operations on the infrastructure investments that have been made.

The Auditor General says instability within the organisation has contributed to the decline in financial management and compliance processes.

Makwetu says there’s been an overall collapse of internal controls at Prasa as a result of inadequate and ineffective oversight.

He also notes that no disciplinary action has been taken against officials who are responsible for irregular expenditure of R5.3 billion raked up in previous years.

(Edited by Winnie Theletsane)

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