It is reported that material losses amounting to R5.8 million were incurred as a result of the assets that could not be verified during the asset verification process conducted for the financial year ended 31 March 2011. This means that there was a mismatch between the assets recorded on the asset registered and the tangible assets. There were therefore fewer tangible assets than recorded assets and the assets on the register that could not be found were treated as material loss to the Department. These assets were therefore written off.