By Thokozani Mazibuko
A damning report from Auditor General Timothy Matsebula has exposed serious lapses in financial accountability at the Global Fund Country Coordinating Mechanism (CCM), raising concerns about transparency and governance of public funds.
According to the AG, the last audit conducted by the Auditor General’s office on the CCM was in 2014.
Since then, no further financial submissions have been made, leaving a significant gap in the oversight of public funds allocated to the organization.
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The report, presented to House of Assembly Speaker Jabulani Buy Cash Mabuza, highlights the non-submission of vital financial statements, effectively hindering the Auditor General’s ability to conduct independent scrutiny.
The audit focused on the financial years ending March 31st, 2023, and March 31st, 2024. According to the report, the CCM, which receives a subvention grant, failed to submit financial statements on the public funds, despite receiving E6,603,640.00 in each of the two financial years.
This blatant disregard for financial reporting obligations has obstructed the Auditor General’s mandate as outlined in the Constitution, section 207, and the Audit Act 2005, particularly sections 10, 11, and 21(1).
“The non-submission hindered my assessments of transparency and accountability of management and those entrusted with governance on funds entrusted to the Global Fund,” stated Auditor General Matsebula in the report.
The Public Finance Management Act (2017) mandates the preparation of financial statements by the Accounting Officer within three months of the financial year-end, followed by submission for audit or audit review.
The Auditor General’s office requested reasons for the non-submission, prompting a response from the Controlling Officer.
The Controlling Officer cited a reduction in support from the Global Fund after the COVID-19 pandemic, which impacted funding for administration, transport, office rent, and salaries.
This led to a government intervention with a 15% grant, starting in the 2020/2021 financial year.
The Controlling Officer also stated that the CCM is monitored and controlled by the Private and Cabinet Office and the Global Fund, with annual expenditure verification conducted by the Local Fund Agent (PWC) and submitted to the Global Fund.
However, the Auditor General’s report firmly underlines that, regardless of these factors, the CCM remains legally obligated to submit financial statements on the public funds within the stipulated timeframe.
This is a crucial requirement under both the Constitution and the Public Finance Management Act.
The Auditor General’s findings raise serious questions about the governance and financial management of the CCM.
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The lack of transparency and accountability, as highlighted in the report, demands urgent attention and action.
The public, who are the ultimate beneficiaries of these funds, deserve assurance that resources allocated to the CCM are managed responsibly and transparently.
Further investigations and corrective measures are now crucial to ensure that the CCM fulfills its financial reporting obligations and upholds the principles of good governance.
The matter now falls to the House of Assembly Speaker, Jabulani Buy Cash Mabuza, to take action in response to the findings.
