Committee observations: . Report of the Auditor-General - Samaf received a qualified report from the Auditor-General. The basis for the qualified report referred to: A number of journals were passed during the system implementation process; and. Management failed to provide sufficient and appropriate explanation to substantiate journals. . Credibility of the information provided - Samaf acknowledged that certain information needed a survey mechanism, which was lacking, and that certain information was not credible, but they noted that they are in the process of putting systems in place to rectify and address these issues. . Comments by the Auditor-General's report - On the Management letter, Samaf created a matrix where employees are responsible for their actions on a monthly basis. They expect improvements after this intervention and assured members that they will have an unqualified report. . Irregular expenditure by employee - the irregular expenditure occurred when an employee went outside of the tender processes to procure, but highlighted that the specific employee was unaware of the correct procedures to be followed. . Material impairments as a write-off - The material impairments were a provision and not a write-off. . Capacity building of institutions - Capacity building of institutions, by Samaf, will be fundamental in the sustainability and viability of these institutions. . Appointment of 14 interns - Samaf intends employing 14 interns who will assist with administration work. . Revised Human Resource structure proposed - Samaf have reviewed their current structure and new one has been developed which is awaiting approval and one of the reason for the reviewing of the structure is because provinces need additional staff. . Legal action against intermediaries to recover debt - Legal action has been taken by Samaf against intermediaries to recover debt owed to Samaf, but Samaf acknowledged that if they do go the legal route to recover money owed, that it will certainly be to the disadvantage of institutions, as this will lead to the closing down of some of them. . Information gathering from Financial Intermediaries (FIs) - Gathering the necessary information from FIs remains a challenge for Samaf. . Risk Management Audit - The Risk Management Audit function is management by an external service provider, whose services has been terminated and this function now resides in the office of the CEO. . Skills and competencies of the Samaf staff - the initial staffing of the agency was people who had good social skills but lacked the necessary financial and developmental skills. Samaf is in the process of implementing Project Bokomoto to improve the competencies of staff. . Lack of support to institutions in the poorer provinces - Some of the institutions might be in a particular province, they had distribution channels in the other provinces e.g. Marang, which is based in Gauteng is also present in 6 other provinces. . Committee's view on the presentation document - The committee felt that the report had to interpretable, supported by reliable evidence, that there should be no incongruent information, and that Samaf must go back and rework the document, where a follow-up meeting will be scheduled.