Forestry Fisheries and Environment Minister Dion George has asked Parliament to grant him an extension to submit the 2023-24 annual report and audited financial statements of the South African Forestry Company (Safcol).
This comes after delays in auditing Safcol’s finances by the Auditor-General.
In terms of the Public Finance Management Act (PFMA) ministers are required to table annual reports, financial statements and a report of the Auditor-General on those statements before the end of September.
When a minister is unable to meet the legal provision, he or she is required to provide a written explanation in the legislature setting out the reasons why such reports were not tabled.
George said the PFMA also required the board, as the accounting authority of Safcol, to submit an annual report, financial statements and audit report to him by the end of August.
He said he received a letter from the chairperson of the Safcol board on September 17, informing him of the delay in finalising the annual report due to the audit process of the Auditor-General.
“The Auditor-General had committed to finalise the audit report by 15 September 2024. However, the entity did not receive the report on the day, and no further updates were communicated to Safcol.
“It is on this basis that I am unable to comply with the tabling period for the Annual Report of Safcol, and hereby request an extension until the Auditor-General concludes the audit,” George wrote.
His letter comes after Correctional Services Minister Pieter Groenewald asked for an extension to submit his department’s annual report for 2023-24.
Groenewald said the department submitted the pre-audited annual report and annual financial statements to the AG at the end of May.
In July, the department received the first draft management report from the AG that was presented to the audit committee.
“Emanating from the discussions, the department disputed irregular expenditure audit findings,” he said, referring to irregular expenditure amounting to R36 941 000 and non-compliance of the department’s participation in contracts procured by another organ of state.
Groenewald said the department had since taken up the matter with National Treasury seeking clarity on the interpretation and application of the Treasury regulations.
“Given the delay in submitting the final audit and management report by Auditor General South Africa, the department is unable to finalise and table the 2023-24 annual report.”
He also said the AG had not provided an expected date of submission of the final audit and management report.
“The department will provide a date for the tabling of the 2023-24 annual report to the Speaker of the National Assembly once the final audit and management report are received,” Groenewald said.
Cape Times