PwC auditor reveals at Zondo inquiry SAA did not comply with public finance act

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PwC says missing files were reported to audit committee

A PwC auditor has admitted to the Zondo commission that the company did not include in its report that SAA did not comply with the Public Finance Management Act. Picture: ALON SKUY

In his evidence to the commission of inquiry into state capture on Thursday, Mothibe said PwC had conducted an audit on SAA on behalf of SA's auditor-general.in August 2018 to investigate allegations of state capture, corruption and fraud. In setting up the Zondo commission, the “From the work we performed, we found deviations which we elevated to the audit committee,” Mothibe sad. He said there were files missing from the financial statements the airline provided.He conceded that without the files, they were not able to complete all the necessary steps in the audit.

“We considered all the evidence provided for audit purposes and applied judgment and at that stage, our view was that there was no material non-compliance,” Mothibe told the commission.Mothibe reluctantly conceded that it was a dereliction of duty on the company's part that it did not mention the non-compliance in the audit report.“It was an omission, chair.”

 

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State capture inquiry: PwC admits mistake in not saying SAA had not complied with public finance actPwC auditor, Pule Mothibe, has conceded that the company misled the public by omitting to state in its audit report that SAA had not complied with the Public Finance Management Act (PFMA).
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