Chairperson, thank you again. I am at the risk of repeating myself, because when you talk of the Auditor-General of South Africa, fortunately there isn't much negative to say, we can only sing his praises. We hope that in the year ahead, in respect of this strategic plan presented before the House, the Auditor-General will continue to exceeds its targets in certain key performance areas, and that the legacy that the current Auditor-General has built would be sustained into the future, even under future leadership. By the Auditor-General, I am referring to the institution, and not just the individual.
As a matter of formality, it remains for me to request this House to consider approving the increase in tariffs. You would recall that the Auditor-General charges a fee for services rendered, and that is the way in which the institution sustains itself. That also ensures that the institution is independent; by not having to depend on an allocation, like all other government institutions, from the state. It therefore charges a fee for services or the audit work that it performs.
The future sustainability of this financing model and its ability to enhance the full independence of the institution are matters that are constantly evaluated by the institution. If it becomes necessary to review this approach through a legislative review process, certainly, we, as a committee, would come to this House and make recommendations. But for the time being this seems to be the best model that ensures that the Auditor- General is independent and is able to do its work without fear, favour or prejudice.
I think that even with the problems that have just been mentioned earlier, where some municipalities in particular and even those who have been audited in other spheres of government have continued to default somewhat. The current model has been sustained and the Auditor-General has been able to maintain a positive book balance every year at the end of its financial year.
We request that the 5,7% increase be approved, mainly to enable them to increase salaries, which are projected at an increase of 8,1%. This is to ensure that the institution remains attractive to high skills in the form of auditors, accountancy, etc, which is a very competitive environment, especially given the kind of salaries that are paid in the private sector. We are pleased, though, that the institution has nevertheless been able to achieve high levels of staff retention and has continued to be attractive as an employer of choice. That is actually encouraging.
Finally, we also request this House to approve the audit directive, which matches with international standards that are set by international bodies. That is the instrument used to perform audits. If you like, it is the rules of the game that would define upfront how the audits are going to be performed so that those who are being audited would know in advance what it is that is expected of them and how audits are going to be conducted, so that they do their bit to ensure that they achieve clean audits. On that note, I commend the report of the committee. I thank you.
There was no debate.
Chairperson, on behalf of the Chief Whip of the Majority Party, I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.