Deputy Chairperson, the question relates to a forensic audit report. Hon Londt, the forensic investigation is currently in progress and is expected to be completed shortly.
The investigation arose from transactions that were flagged by the Auditor- General during the past audit and raised by National
Treasury. It covers two kinds of transactions. The first covers supply- chain issues, while the second covers overspending against budget.
On the supply-chain issues, it appears as if the commission did not follow all the prescribed processes in the appointment of lawyers and forensic experts. When this was brought to their attention, the commission stated that they needed to find specialist skills in those areas but that it was not always possible to do so in the prescribed way. The Auditor-General said, well, in that case you needed to have a proper deviation.
The noncompliance resulted in transactional expenditure that was regarded as irregular amounting to some R51 million in the financial year 2017-18. There was also budgetary overspending of some R34 million.
So, what the forensic investigation is now looking at is the extent of the problem. Why did it take place? Are the explanations adequate? What loss was suffered? All of those issues are part of the investigation.
Of course, I can't speak on the merits of this because it is an investigation that is currently underway. I do want to note though that, while the forensic investigation is underway, the commission has taken steps to reduce its operating expenses. This is evident in the latest annual financial report, during which period the commission recorded a surplus of R23 million. So they have begun to reduce their accumulated deficit.
This goes particularly to the issue of the cost of the private health care market enquiry. The conclusion of that market enquiry dramatically reduced the cost base of the commission. Thank you.
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