31 AUGUST 1998
STATEMENT BY FRENE GINWALA
Auditor-General, Mr Henry Kleuver Deputy Auditor-General Mr Shauket Fakie Deputy Mayor Members of the Audit Commission, Staff of the Auditor-General's Office Distinguished Guests
I was very pleased to have been invited to be with you today at the official opening of this new building to house the Office of the Auditor-General. My presence here underlines the pivotal roles played by the National Assembly and the Office of the Audit or-General in strengthening constitutional democracy by ensuring accountability and the proper management of our financial resources.
The Office of the Auditor-General was established and functions under our new Constitution and legislation. An office with the same or similar names existed in this country prior to 1994, just as an institution called Parliament has existed for nearly 90 y ears. Such institutions have facilitated our transition by providing us with established structures to perform many of the functions of governance. But they carry with them a danger, if we do not appreciate that the very instruments we have to use in ord er to transform our society are themselves in need of radical transformation.
Too often, state institutions and other organisations see transformation as something that happens or should happen in the wider South Africa, with which they have to come to terms, instead of recognising that they have to undergo a thorough examination an d transform themselves even as they participate in the broader changes in society. More frequently, the only change they consider themselves obliged to make, willingly or unwillingly, is to become more representative.
State institutions are by definition imbued with the over-all perspective and dominant culture, ethic, morality, principles and values, which they serve and perpetuate as much as they carry out their specific functions.
The post 1994 South Africa requires a new culture ethic morality principles and values, and therefore places new obligations on organisations that were established and functioned under apartheid, even though their technical functions may appear to be the s ame.
That for the first time in our history, the Parliament is composed of representatives of the entire population chosen in free and fair elections, is but the first step in democratising and transforming the institution and the law making process in conform ity with participatory democracy; thus fulfilling our constitutional obligations. Parliament has won respect for the democratic and transparent way in which it operates, and for the manner in which it scrutinises legislation and executive action. But we a re very aware of how much still remains to be done.
The office of the Auditor-General has had to face a similar challenge. All aspects of its functioning needed to be reviewed and reassessed in the light of the new Constitution and its principles. Just as undemocratic societies often have Parliaments so th ey also create institutions and offices such as an Auditor-General to try and acquire credibility or legitimacy. In South Africa, the majority of the population was first disenfranchised and then excluded from the polity, and so an elected government tried to claim legitimacy. An allegedly independent judiciary was expected to apply and enforce laws that were manifestly unjust and violated basic human rights. Large areas of the functioning of government and its institutions were removed from public scrutiny by law, and an environment of intimidation, corruption and lack of accountability and censorship was created within which the press, the Auditor General’s Office and other agencies had to operate. Thus all of these apparently independent institutions were used to provide a façade of democracy.
This imposed particular challenges on those who tried to carry out their professional responsibilities, without succumbing to providing active support for apartheid. The TRC offered everyone the opportunity to pose and examine the dilemmas posed in such c ircumstances.
I have referred to the past, in order to contextualise the challenges this office faces as it relocates itself not just in new premises, but also within our new constitutional order. Before I entered Parliament, my knowledge of the reports of the Auditor-G eneral was limited to research in trying to trace sanctions busting and secret funds for covert operations, or for identifying the high levels of official corruption. It is ironic, that when I no longer need them, I can find many closed reports in the Par liamentary library, with access obtainable on the authority of the Speaker.
The Auditor-General's Reports are now required to be public, and I am happy to see that they are being produced in a style and with background information that assists in understanding the contents, rather than to create obscurity.
This new building will no doubt provide better conditions for staff and allow for greater efficiency and productivity. We look forward to greater progress in your effort to become more representative through affirmative action. Such action should go beyo nd reaching out to and drawing in the full range of potential employees, and extend to making changes in the culture, management and operational style, and the organisation of the workplace to accommodate their various needs.
We are glad to note the commitment, that in contracting out services, historically disadvantaged firms and groups will be affirmed.
The Office should be congratulated in achieving standards that have won recognition by the World Bank as international “best practice”, and secured appointment as auditors to the WHO, and also I understand to the International Organisation of Supreme Audit Institutions.
We have noted with appreciation the development and changes in the functioning of this Office. The establishment of a forensic auditing capacity is a regretful necessity in these times. You have gone further in seeing your role as more than a monitor who comes in after the event. The Office should be applauded for the proactive role it is playing in the national task of establishing proper systems and procedures for fiscal management and public accountability. I am glad to see that you provide guidelines and training as well as help set up procedures that could prevent and eliminate corruption.
Your efforts could be reduced to naught if the National Assembly is unable to consider and process your reports adequately. I would like to take this opportunity to thank the Auditor-General's Office for the assistance that has been given to Parliament's Public Accounts Committee. This goes beyond being generally helpful and open, and includes providing us with resources such as computers and appropriate software, as well as training including familiarising members of the Committee with computer auditing.
It should not be surprising that those responsible for auditing or scrutinising a new government would meet with suspicion or hostility. The Office of the Auditor-General will only be able to carry out its full functions and contribute to the deepening of democracy to the extent that its bona fides are accepted and it is able to gain understanding and trust.
I would urge you therefore, that even as you maintain your independence and remain vigilant and critical, you also engage in continuous dialogue with members of the executive and administration. The establishment of an inter-Ministerial Committee to maint ain liaison can only be beneficial.
I wish you success in this endeavour for it is in our common interest. The Office of the Auditor-General has a significant role in establishing accountability and shaping and consolidating democratic practices. It is therefore particularly important, that the way in which it functions and develops an understanding of its task gains respect and trust, and shifts the perception of the Office from being a prefect to becoming a partner in establishing good governance in our country.