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The annual report of the Independent Regulatory Board of Auditors (IRBA) for 2009 shows that the institution incurred irregular expenditure to the tune of R11.4 million. This is an indictment of a government body created to police auditors. It's the equivalent of a lifeguard not being able to swim.

In addition, the report shows that the Auditor-General (AG) experiences difficulty in getting information from the IRBA. Also, the former CEO Karim Hoosian received a bonus of R250 000 for the 2008/09 financial year, even though his term of employment ended on 30 June 2008.

The failure by the IRBA to avoid irregular expenditure is like the Competition Commission being found guilty of price fixing - it calls into question whether the regulator can even fulfill on the most basic of mandates and what else it is defaulting on that has not been made public.

The total expenditure for the IRBA in 2009 was R56.6 million - which means that the irregular expenditure made up 20% of the total; a very large and notable proportion indeed.

The irregular expenditure comprise of the following:

• Not obtaining valid tax clearance certificates: R 3.4 million
• Orders or contracts not pre-authorised: R 0.4 million
• Procurement without obtaining three quotations: R 7.6 million

Other problems flagged by the AG are:

• Difficulties concerning delays or the availability of requested information,
• The financial statements were subject to material amendments resulting from the audit, and
• Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and regulations.

The sum total of these failures provides a clear cut case of not practicing what you preach against the IRBA. What kind of message is the IRBA sending to the auditors which it is supposed to police?

The Democratic Alliance will be posing parliamentary questions in this regard to the Minister of Finance, particularly regarding what actions will be taken against those responsible for the irregular expenditure, and how awarding a bonus can possibly be allowed in this situation.