PwC claims it had limited scope to confirm irregular expenditure at SAA

The state capture commission in Johannesburg has heard that a revised supplementary statement by auditing firm Pricewaterhousecoopers (PwC) claims they had limited scope in confirming the amount of irregular, fruitless and wasteful expenditure at the South African Airways (SAA) for no less than four years.

PwC Auditor, Pule Mothibe, has claimed at the commission they do not know how much money was wasted at SAA because they had some challenges in accessing some files from procurement and supply chain management.

In 2017, the Auditor General took over SAA auditing. It found 80 of the 96 tender contracts awarded at SAA were non-compliant. 60 of those were classed as fruitless and wasteful expenditure.

The AG’s office had to deploy an entire team to look for tender dockets.

“We did identify challenges in regards to the contract register and there were elements where we could not be provided with; contracts that we had requested for, irregular and fruitless and wasteful expenditure. The SAA Group did not establish adequate controls to maintain complete records of irregular and fruitless and wasteful expenditure. We are not able to obtain appropriate and sufficient audit evidence to complete the fairness of the amounts of irregular expenditure,” Mothibe said.

He has concluded his testimony.

In the video below, the State Capture Commission hears testimony from PwC:

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