In the last three
financial years, audits 2015-16 to 2017-18, yes, the Department of Defence received qualified audit opinions - nothing to be proud of. The department has never though received disclaimer audit opinion from the Auditor- General. [Applause.]
Action plans have been developed to deal with the qualifications received in the asset management environment. There are differences of opinion on accounting standard interpretations between the National Treasury and the Auditor-General. There are ongoing discussions between the three entities to resolve these issues before the start of the 2019-20 financial year.
Chair, I should say that I have been part of those meetings, so I know what the debates are. There are consequence management plans in place for mismanagement and other financial misconducts in the Department of Defence, which include the following: An institution of boards of inquiry; military police investigations and referral of cases to the SAPS, as and when required in criminal cases; investigations performed by the Inspector- General of the Department of Defence and the Defence Intelligence Division as needed; and consequences resulting from these interventions have included disciplinary actions, dismissals and referral to the criminal justice system as needed. Thank you, Chair.