Mohlala’s resignation as adjudicator – a job paying around R1.7m a year — was effective at end-September 2009. Thus the “fruitless and wasteful expenditure”, found by the Auditor General, took place under her watch.
Specifically, there was R3.2m spent on leasing a building that the OFPA didn’t occupy. There were also “irregular expenses” of R476 500 that she’d authorised after she’d left office.
The Auditor General is scathing in his observations about how the OPFA was run:
The accounting authority did not exercise oversight responsibility over reporting and compliance with laws, regulations and internal control;
The commitment to quality was not communicated;
Management’s philosophy and operating style did not promote effective control over reporting. They did not lead by example;
The risk of material misstatement due to fraud was not considered.