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In conclusion AG Makwetu tells the delegates to fortify their systems to prevent unnecessary abuse of public resources.
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AG Makwetu says relying in corrective/detective controls usually leads to fruitless and wasteful expenditure.
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For preventative controls to work, they require the tone at the top and the culture to be aligned says AG Makwetu
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AG Makwetu challenges delegates to think about what these preventative controls looks like for their environments.
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Preventative controls are cheaper to implement because they depend on people already in the organisation says AG Makwetu
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If you have enough preventative controls you don't need to worry about the kind of audit outcomes u will get says AG Makwetu
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AG Kimi Makwetu shares his message of preventative controls over corrective controls to delegates attending the
@SALGA_Gov Executive Management Team session.pic.twitter.com/sFfGgrSKyU
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AG Makwetu concludes his address by challenging delegates to reflect on whether they are aligned to the culture of preventative controls.
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AG Makwetu says PAA implementation has shifted his team of auditors from sceptical auditors to suspicious auditors.
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When determining the best place to deploy preventative controls, Internal Auditors can use the 80/20 rule base on who accounts for most budget.
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Phase 1 of the implementation of PAA ammendments resulted in 28 material irregularities from 16 auditees. The next PFMA phase will cover 89 auditees who account for over 70% of the budget says AG Makwetu
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AG Makwetu urges Internal Auditors in attendance to make the PAA ammendments redundant by implementing preventative controls.
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Many people have different ways in which they interpret the additional powers given to the AG, some say we will chase and arrest people which is not the correct interpretation says AG Makwetu.
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Through the ammendments to the Public Audit Act, Parliament has firmed up the mandate of public sector external audit says AG Makwetu
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Internal Auditors need to stand back and ask what the controls are about and if they will assist in preventing things before they go wrong says AG Makwetu.
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AG Makwetu says Internal Auditors have a huge role to play and they must take their place.
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We do not want to find ourselves spending R5 million in attempt to recover R2 million says AG Makwetu
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We advocate for preventative controls over corrective controls because it is the cheaper option. It is expensive to implement corrective controls and chase after money that has left the bank says AG Makwetu
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Preventative controls however requires a level of discipline that must be reflected from leadership.
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This country and our system need to elevate the importance of preventative controls says AG Makwetu
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