‘This finding is wrong’ – Ingonyama Trust Board disputes AG’s qualified audit opinion

The Ingonyama Trust Board (ITB) obtained a qualified audit opinion after the Auditor-General of South Africa (AGSA) found it did not disclose the full extent of its irregular expenditure.

“We are saying this finding is wrong,” ITB chairperson Jerome Ngwenya told the Portfolio Committee on Agriculture, Land Reform and Rural Development.

The ITB disclosed R943,824 as irregular expenditure in the annual financial statements submitted to AGSA for audit purposes.

However, AGSA found irregular expenditure to the tune of R2.84 million.

According to Ngwenya, the amount includes the ITB’s irregular expenditure of R1.9 million from the previous year.

“Here, we have launched a dispute with the AG,” said Ngwenya. “Both legally and factually, they are incorrect.”

At the start of the meeting, committee chairperson Mandla Mandela emphasised the need for accountability.

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He said submitting an annual report is an act of accountability and acknowledgement that an entity is not a law unto itself.

“The trust is a public entity and must account as required by law,” he said.

“On what basis does the board argue that it should not be accountable in the manner that Parliament wants?

“This is a longstanding matter that ought to be resolved.”

Ngwenya claimed they are not listed as a public entity, and that the ITB is not subject to the Public Finance Management Act (PFMA) because it does not receive any money from the state (the ITB does receive funds from the state).

Several committee members from across the political spectrum expressed views similar to that of Mandela.

EFF MP Sam Matiase said the AGSA is the “supreme audit institution” in the country and its “opinion reigns supreme”.

He said the Trust has a long history of disputing that it is bound by the PFMA and called on it to subject itself to the rule of law.

FF Plus MP Tammy Breedt said she doesn’t see the necessary accountability from the ITB.

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ANC MP Busisiwe Tshwete said she is happy the ITB acknowledges that it needs to fully account to AGSA.

“We are trying as best as possible to follow the law as it is written,” said Ngwenya.”Whenever we come to this committee, we find ourselves having to answer to things the law does not require.”

Ngwenya said this creates the impression that they are belligerent.

The committee also had several questions, and Mandela gave the ITB the option of responding in writing.

Ngwenya complained that they do not have enough time to answer all the questions.

“What you have asked is quite monumental,” he said.

“If I may say, with the greatest respect, this report has said some of the things I am saying. And, also, I’m getting the impression some of the questions indicate to me that some of the members did not read the report before you.”

Mandela responded calmly: “I can assure you, our honourable members read the report and they continue doing the work they are mandated to do.

“I would not want to cast aspersions on honourable members that they are not doing their work,” said Mandela.

The ITB was established in the dying days of apartheid and is the largest owner of land in KwaZulu-Natal, with King Goodwill Zwelithini as its only trustee.

The ITB administers the trust.

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