Fin24

Qualified audits deserve no bonus - Scopa

2010-05-21 11:26

Cape Town - Parliament's public accounts committee (Scopa) chairperson Themba Godi wants to see an end to the payment of performance bonuses to directors general (DGs) whose departments receive qualified audits.

Godi, leader and only MP of the African People's Congress party, has the support of some ANC MPs.

ANC MP Roy Ainslie said on Friday unless there is a link between how departments are managed and the bonuses paid, DGs would have little incentive to address financial mismanagement and weak internal controls.

"To say a qualified audit does not necessarily affect [a DG's] bonus is unacceptable," said Ainslie. "How can you get a performance bonus when your financial management is not in order?"

Frustrated auditor general

Ainslie said DGs often shrug off qualified audits and points of concern raised by the auditor general (AG) by arguing that they had no control over the problem. This results in the AG raising the same issues year after year.

For example, when Tshediso Matona became DG of the department of trade and industry in 2006, Scopa warned it would press criminal charges against him if he failed to address weak internal controls at the Companies Intellectual Property Registration Office (Cipro). In Cipro's audit, the AG again flagged the same issue.

Meanwhile Matona's political boss, Minister of Trade and Industry Rob Davies, has promised Scopa he will be cracking the whip.

Godi's statements on this subject echo the frustration frequently expressed by AG Terence Nombembe.

In a recent report to parliament, Nombembe complained about a lack of leadership from ministers and their administrative heads. This, he said, leaves critical issues and weaknesses in government's financial management, making it vulnerable to corruption.

 - Fin24.com       

Comments
  • LittleNinjaDevil - 2010-05-21 11:52

    well I agree if a department cant get a unqualified audit opinion then you know there is something wrong. its the same as if a company gets a loan from a qualified audit opinion.

  • JSC - 2010-05-21 12:03

    At last somebody is making the right noise. Maybe all is not lost.

  • Joe Public - 2010-05-21 12:03

    Uhm, noble cause guys, but this really is like flogging a dead donkey. Don't you know that ANC deployed cadres ALWAYS get bonuses, perks and parties at taxpayers' expense, irrespective of performance? Qualified audit, hah - what's that?

  • terry - 2010-05-21 12:03

    This is hardly worth commenting on. Anywhere else in the world a qualified audit would result in the DG being forced to resign - here he gets a bonus. This is because the ANC is corrupt to the core and have appointed all their buddies to positions that none of them should hold, and they simply can't do their jobs (at best).

  • at - 2010-05-21 12:11

    Agree wholeheartedly with Mr.Godi. The whole R S A Bussiness world should renegotiate performance bonuses for all employees . Which should include no profits no bonuses. No matric pass achievements - no bonuses.No service delivery no bonuses.

  • John - 2010-05-21 12:16

    If a DG says he had no control over a problem they should be fired

  • CR - 2010-05-21 12:33

    Could not agree more - in fact suggest it is made a standard employment term....

  • Andre - 2010-05-21 12:36

    Dur! Why was it not always that way. A qualified audit report says that you did not perform.

  • Simphiwe - 2010-05-21 12:42

    why is a bad audit(mis management of funds etc) called a qualified audit? shouldnt it be called an unqualified audit because its not accepted?

  • Benzo - 2010-05-21 12:44

    Solution? Certainly no bonus for unqualified audit. The man is just doing his job!! For qualified audits? reduce the salary by the percentage points mentioned in the audit: 80@ qualified = 20% less salary. Apart from the potential "bribing" of auditors, the system will work like a dream. Take them where it hurts...in the pocket.

  • RUDOLF - 2010-05-21 12:46

    Comments such as these will make you extremely unpopular. Send out the CV before it is too late. Implementation of your opinion will create a serious cashflow problem and drop of sales in new high class motorvehicles.

  • Vusi - 2010-05-21 12:56

    This is a serious concern. I believe the Ministers do not understand the importance of internal controls and they (Comrades -Ministers) do not care about the implications as they are accountable to no one. This is very concerning as it is our tax money that is misused.

  • Sihle - 2010-05-21 13:10

    I fully agree with Godi on this matter. Why should DG's receive bonuses if they not performing according to what's required. It's a bit unfair to the DG's that actually do get unqualified audits. In fact DG's that receive an qualified audit should be evaluated and assisted with training etc.

  • Uta - 2010-05-21 13:29

    Themba Godi for president!

  • Alan Bissett - 2010-05-21 13:40

    This is typical of the arrogance of too many of our government officials and why corruption is rife as too many are in positions of power without any qualifications, experience or leadership qualities - it is a great disappointment that 1994 promised so little and our hopes for SA to be different from the rest of Africa were naive - the rot has set in big time!!

  • DV8 - 2010-05-21 13:42

    A sole, sane voice at last.

  • Joe - 2010-05-21 13:52

    If this is actually implimented it will be a long overdue, but still fantastic, development. Let's see if it is not just more talk like in the past.

  • MD - 2010-05-21 15:21

    I fully agreed with Themba Godi. However, the same should be applied to Ministers.

  • CLINT - 2010-05-21 15:24

    'SCOPA' IS A TOOTHLESS DOG. THEY HAVE ON NUMEROUS OCASSIONS TRIED TO REPREMAND HIGH RANKING OFFICIALS WITH LITTLE OR NO SUCCESS. LOOK AT GREECE, PORTUGAL AND SPAIN. THIS IS THE RESULT OF GOVERNMENT DEPARTMENTS MISSUING TAX PAYERS MONEY. THEY WILL EVENTUALLY PAY THE PRICE

  • Kickass - 2010-05-21 15:49

    Just put your money where your mouth is!!!!!!!!!!!!

  • Aki - 2010-05-21 15:53

    I don't see them not getting the bonus. The president has set a precedent by saying, ealier this week, if the ministers fail to deliver they not fear getting the boot.

  • Big Ant - 2010-05-21 16:17

    What happens is they want to do an audit but the whoel department is on lunch? Do we negotiate it over Kentucky?

  • RB - 2010-05-21 17:02

    In the private sector, not only will you not receive a bonus, you will most definately not have a job! DG's now qualify for market related salaries, no reason why they do not have to comply with similar accepted practice! Wish we had a few more Themba Godi's!

  • KD - 2010-05-26 07:40

    I fully agree Mr Godi, Departmental staff will start taking audits seriously if there are npenalties for them, otherwise it's just another year and anothe qualified audit opinion for them, and then what??????

  • Margaret Arnolds - 2010-05-29 14:44

    The President of the APC has been in the media as SCOPA chairperson for all the right reasons cracking the whip on people who are incompetent and corrupt This is the way to go my President

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