ICASA, FPB, ZADNA, Sentech, Infraco, NEMISA, USAF & USAASA Annual Reports 2020/21

Meeting report

Ms Nonkqubela Jordan-Dyani, Acting Director-General, Department of Communications and Digital Technologies (DCDT), in her introductory remarks, informed the Committee the entities would be touching on the difficulties experienced and targets not achieved. The audit reports would explain interventions the entities put in place. She then gave a brief summary of each entity's 2020/21 performance.

Independent Communications Authority of South Africa (ICASA)
42 targets were achieved, while six were delayed because they were involved in litigation. The entity was in a precarious financial position due to salary and administration costs. The Department would continue to assist the entity while trying to work on an appropriate funding model. The entity achieved an unqualified audit opinion for the financial year under review.

Film and Publication Board (FPB)
It had achieved 67% of targets, which was a decline from the previous year. The entity was in a good financial position, with positive going concerns. The outstanding presidential proclamation would be in operation as from January 2022. The entity addressed how its classification work was affected by the pandemic.   The FPB achieved an unqualified audit opinion which remained unchanged from the previous year.

.za Domain Name Authority (ZADNA) Annual Report 2020/21
ZADNA had achieved 82% of its targets and received an unqualified audit opinion. It had remained self-sustainable, with no support from the Department.
Sentech
Sentech was a going concern because of the over-dependency on the services it provides to the SABC. It needed to diversify its revenue streams. 82% of its targets had been achieved and it had improved its cash-flow position. It had made a net profit of R12m. It could not achieve a clean audit outcome due to poor expenditure management. It was working on its revised strategy to look at solvency and liquidity ratio issues and other business avenues. It was also working on a merger with Broadband Infraco.

Broadband Infraco (BBI)
BBI had managed to achieve 74% of its annual targets, just like in the previous year. Five targets (14/19) were not achieved, including the new cells contract, and it was improving on its operating profit. It was a going concern, and had received a qualified audit opinion. The lack of funding was a concern, because it was struggling to pay its suppliers, and it needed to be made competitive. It was looking at revising its strategy.

National Electronic Media Institute of SA (NEMISA)
The entity had achieved 91% of its targets, and received an unqualified audit outcome. The Auditor- General (AG) had raised points of emphasis.

Universal Service and Access Agency of South Africa (USAASA) & Universal Service and Access Fund (USAF)
The USAASA received an unqualified opinion with emphasis, while the USAF achieved none of its five targets. It had received a disclaimer and would work on its intervention plans.

ICASA Annual Report 2020/21
Dr Keabetswe Modimoeng, Board Chairperson, ICASA, said the entity was there to give all South Africans access to a variety of safe, affordable and reliable communication services for inclusive economic growth.
The AG had audited ICASA’s performance information for the 2020/21 financial year, and on Programme 4 (Engineering &Technology) which it selected for auditing, had not identified any material findings on the usefulness and reliability of the reported performance information. The entity had achieved 87.2% on its annual performance. Since 2016, the entity had been above 60%.

ICASA's performance was attained against the backdrop of service delivery environmental factors which supported and also challenged the achievement of targets. COVID-19 presented a challenge to the Authority’s operations especially as regards to the conduct of public hearings. Some of the regulatory processes and compliance requirements had to be suspended. It further highlighted the urgency to address digital inequality. The Authority had responded by issuing temporary high demand spectrum. The issuing of the high demand spectrum was supported by further funding received from National Treasury, and a proposal was submitted to National Treasury and the Department of Communication and Digital Technologies (DCDT) on an alternative optimal funding model for the Authority.

ICASA's performance on predetermined objectives was attained amid organisational environment factors which either supported or challenged the achievement of targets. It began the year with the finalisation of the organisational structure review process, which began in 2019. Some councillors’ term of office came to an end and new members of the council were sworn-in. The Authority’s strategic plan had to be reviewed to take into account the effect of COVID-19. Some projects had to be removed from the annual performance plan (APP). COVID-19 interventions had to be developed in line with the Department of Performance Monitoring and Evaluation (DPME) Circular 2 of 2020. Due to the COVID-19 pandemic, teleworking became the new normal. Some human resource policies had to be revised to accommodate the COVID-19 demands. COVID-19 had challenged ICASA's style of leadership. Its disaster management and crisis management committees had to be activated to allow leadership to consult on an ongoing basis on a variety of matters arising from the national state of disaster.

Mr Willington Ngwepe, Chief Executive Officer (CEO), ICASA, said the entity had maintained its objective to provide access for all South Africans to a variety of affordable and reliable communication services for inclusive economic growth. It achieved 91% of its organisational service delivery target, and 50% on the status of social cohesion (inclusive of diversity of views) enhanced. It had achieved 41 of its 47 planned outputs (87%).  

ICASA continued its provision of information communication technology (ICT) services to consumers. Communities were able to get Covid-19 information through radio, learners were able to get educational programmes during the lockdown, and access was provided to broadband services during the Covid-19 national lockdown -- this included schools’ internet connectivity and under-serviced areas.

Ms Josephine Meyer, Chief Financial Officer (CFO), ICASA, said the Authority had received an unqualified audit opinion with material findings. There were two areas of concern. Effective and appropriate steps were not taken to prevent irregular expenditure of R947 768, and payments were not made within 30 days or an agreed period after receipt of an invoice, as required by Treasury. Nothing had been reported on consequence management and procurement and contract management. ICASA had also received R50m in additional funding from National Treasury for ring-fenced projects. It had saved R47 million during the year.

(Tables and graphs were shown to illustrate organisational structure, financial statements and budget expenditure: see attached for further details)

FPB Annual Report 2020/21

Ms Zama Mkosi, Board Chairperson, said the FPB had experienced Covid-19 related challenges and industry shifts which had to do with technology advancements. All these had affected the performance of the organisation. The moratorium placed on the company’s salary adjustments and appointment of staff at the strategic level had resulted in unfilled vacancies.  This had also affected relations with labour, because the company could not reach salary agreements. For the 2020/21 financial year, the entity had achieved ten of its 15 annual targets (67%).

Ms Nomvuyiso Batyi, Interim CEO, said that the principles central to FPB's regulations make the exploitative use of children in pornographic films, publications or on the internet, punishable by law, and protection was provided to children from early exposure to adult material and use in child sexual abuse material publications (child pornography). The FPB provides consumers with advice on media content, hence the slogan, “We Inform. You Choose.”

What had been noticeable was a significant year-on-year drop in the number of submissions of content across all formats in Quarter 1, with the exception of publications. While Quarter 1 was traditionally a slower quarter for the submission of content, the significant negative difference in Quarter 1 of 2020/21 might be attributed to the alert level 5 lockdown.

In response to the Covid-19 pandemic, the FPB had moved to a remote classification system that had continued under the various levels of the lockdown during the review period. The remote classification model required strict protocols to be observed to protect the security and confidentiality of content submitted for classification before it was released. Distributors of public entertainment and film festivals were particularly hard hit by the pandemic, with the closure of cinemas and physical venues for a prolonged period. Film festival organisers had to postpone schedules to find effective solutions to the pandemic, unlike theatre  releases, where festivals could move into the virtual space. The challenge was finding the appropriate technological solutions that would not compromise the  unique experience film festivals provide their audiences, alongside the networking and learning opportunities for the makers of content. In the year under review, the major victory for FPB had been the conclusion of a distributor agreement with the international online giant, Netflix.

Ms Batyi indicated that Covid-19 had not deterred the monitoring of distributor compliance. Despite the hard lockdown that started before Quarter 1 of 2020/21, the physical compliance team had adapted rapidly and moved to the online monitoring space. The compliance and monitoring team found that 1 102 distributors were non-compliant         with various sections of the Films and Publications Act, and 767 non-compliant notices were   issued. The team continued to assist organisers of film festivals to ensure compliance,  and 11 engagements were held with existing and new film festivals. Pop-up drive-ins and film festivals became part of the new phenomena of the pandemic.

During the pandemic, the FPB continued to protect and reach out to children and caregivers. Joining forces with other key stakeholders in the online child protection sphere was especially crucial in response to the COVID-19 pandemic, because children spent more time in the virtual space, and offenders also migrated online to find their victims, thus increasing the  global traffic of sexual predation and online child sexual abuse offences. Nine cases were referred to the FPB through the Child Sexual Abuse Material (CSAM) hotline or by email. The child protection team worked on 23 suspected CSAM cases referred by the Family and Child Protection Services (FCPS) division of  the South African Police Service (SAPS). 18 cases were completed in the year, despite the  challenges faced by the pandemic lockdown. 733 810 images were examined of which 3.7%   (27 174) were found to constitute child sexual abuse material.

In addition, the compliance monitoring team conducted 94 raids and three destructions. In the Northern and Western regions, a total  of 1 273 discs that contained adult pornography were destructed, with 11 discs containing bestiality. The street value of these  destructed discs amounted to more than R10 million.

The year under review had been eventful for the research, policy and  advocacy (RPA)  business unit. The flagship project, the convergence    survey, had been finalised and launched.  The RPA unit supported the legal and regulatory affairs manager to  produce and finalise a socio- economic impact assessment (SEIA) as part of the legislative review process. The unit continued its role as part of the advisory group for the “Step It Up For Gender” project, to combat gender stereotyping in the media, which contributes to gender-based violence (GBV).

Mr Mahomed Chowan, CFO, presented the 2020/21 audit outcomes. The entity had received an unqualified opinion. The disclosure of the note for commitments in the financials had required a material adjustment and this had contributed to the entity not receiving a clean audit. The management had immediately implemented controls to prevent a recurrence. An irregular expenditure of R116 000 was incurred. There was no fruitless and wasteful expenditure for the year under review.

(Tables and graphs were shown to illustrate organizational structure, Covid-19 impact on content classification, APP performance, and financial information: see attached for further details)

ZADNA Annual Report 2020/21

Throughan extraordinary collaboration between the public and private sectors, nearly 36.6 per cent of adults in the Province have been vaccinated.

Through an extraordinary collaboration between the public and private sectors, nearly 36.6 per cent of adults in the Province have been vaccinated.

Through an extraordinary collaboration between the public and private sectors, nearly 36.6 per cent of adults in the Province have been vaccinated.

Ms Palesa Legoze, Board Chairperson, informed the Committee the organisation achieved 90% of its targets (nine out of 10). There had been a significant increase in demand for domains. ZADNA had obtained a clean audit outcome for the 2020/21 financial year. The 2020/2021 budget was based on the R12 per domain name fee, and revenue of R16.1 million was realised for the financial year. It continued to provide an expeditious alternative decision resolution process and prompt decisions. In the year under review, 16 awareness campaigns were concluded, complemented by 12 media coverages and 15 registrar-reseller training programmes.
 
Mr Molehe Wesi, CEO, talked about the challenges faced by the entity. For the 2020/21 financial year, the organisation had missed an opportunity of achieving the  annual target for the “Registry and registrar licensing framework” strategic goal. A project was introduced in the latter part of the year to ensure the licensing framework goal was met. There was a notable gap in the stakeholder engagement and management, but more effort would be placed on utilising budgeted engagements to advance this.

Mr Justice Tembo, Finance Representative, reported that ZADNA's revenue had increased from R14m to R16m due to increments in domain registrations. A surplus of R5.4m had been recorded.

Mr Wesi concluded by stating ZADNA was working towards getting promulgation of the Registry -Registrar Licensing Regulations; would continue working on sustaining and improving its internal financial control environment; improve stakeholder engagement; and improve ZADNA participation in domain name system (DNS) policy development regionally and globally.

Sentech Annual Report 2020/21
Mr Mlamli Booi, CEO, Sentech, said the market was challenged by Covid-19 and the changing dynamics in the broadcasting and ICT sector. The organisation had made sure the customers were kept on air and serviced. The entity operated remotely, observing Covid-19 protocols and protecting its staff. The focus was on socio-economic transformation, health of the organisation and achievement of targets. The profit level of the entity had improved to R300m, with an operating profit of R253m. R2 billion was in the bank. The organisation had attempted to achieve 100% of its targets, but had fallen short.

On socio-economic transformation, the target was to prioritise small and medium enterprises (SMEs) owned by youth and women. SMEs were paid within 30 days to ensure they did not suffer financially. The entity was spending what was budgeted for, and tenders were awarded to SMEs.

Sentech had set strategic goals and targets that were driven by the “I Care” values, innovation, ethical behaviour and customer-centricity. The organisation seeks to optimise growth and focus on its customers while being innovative in the ICT sector and spending budget on the training of staff members. It was partnering with universities to provide bursaries to women studying engineering in order to increase the pool of interns and recruits. The focus was on green energy and establishing solar panels for environmental preservation. The governance of the entity was effective, and they were seeking to maintain its reputation.

Only nine of its 11 key performance indicators (KPIs) were achieved. There was no achievement on customer-centricity, because they could not provide discounts to customers who wanted to go on holidays. This had been a big disappointment for the entity, as it had affected the audit outcome. It had to ensure sustainable growth because it experienced challenges in broadband penetration and cyber attacks, and as a result, they had to reconfigure how they worked.

Ms Komathie Govender, Acting CFO, said Sentech had achieved an unqualified opinion with findings, the  root cause being that the finance personnel were in acting capacities. Controls would be reinforced and financial statements would be prepared according to legislation and accounting standards. An audit action plan had been compiled to deal with the findings. The results were telling a story of resilience. A good revenue performance had been recorded, with the R1.4 billion achieved exceeding the target of R1.3billion. Net profit was sitting at R313m, and cash at the end of the year was standing at R2 billion. The entity was getting no funding from the government for its operations.

Mr Booi concluded that the company was in a good financial position and was a going concern. The main challenge was on how to continue operating during the pandemic. They would continue to diversify revenue streams while building on the current streams through strategic partnerships and acquisitions.
Sentech was focusing on growth in the area of broadband, and would continue to review costs on an ongoing basis while always delivering quality services to its customers. Research and innovation were the driving engines for the development of new business.

(Tables and graphs were shown to illustrate financial information: see presentation attached for further details)

Broadband Infraco Annual Report 2020/21
Ms Leah Khumalo, Board Chairperson, said BBI had a contract with its shareholders to achieve 19 targets, as encapsulated in the corporate plan. This had occurred prior to the outbreak of the COVID-19 pandemic. The performance for this financial year attested to the resilience of BBI employees who were not only impacted by the pandemic, but also faced the challenges caused by the company’s original equipment manufacturer (OEM) supplier for its core network equipment.

BBI had achieved 14 of its 19 targets. Of the five targets that were not met, three were for financial sustainability, one for governance, and one was for socio-economic transformation. Sales volumes and revenue were affected by one large customer cancellation that could have impacted on the performance significantly. Despite the reduction in the number of key accounts managers within the sales team, revenue declined by only 1%. The company could not replace these human resources due to the moratorium on the filling of vacancies as a result of the pending merger with Sentech.

Ms Khumalo noted that the decline in revenue remained minimal. This was a result of the concerted efforts focused on customer retention in order to protect the base revenue. This was achieved by the sales team in very challenging times, and an independent customer satisfaction survey conducted on behalf of the company by BMIT was testament to the outstanding efforts of the team. The BMIT survey report had commended the efforts of the account management team in maintaining stability during an exceedingly challenging period in the company’s history.

Another noteworthy achievement was that BBI improved its Broad-based Black Economic Empowerment (B-BBEE) status from Level 7 in the prior year to Level 4. It had achieved this despite the various challenges the company had faced in this regard. The company now planned to improve on this in the next financial year.

Mr Ian van Niekerk, CFO, reported the audit outcome had been unqualified with findings.
The findings were related to BBI as a going concern, irregular expenditure, and assets and financial information. All key risks were related to funding and unfilled vacancies, and competition faced from state-owned companies (SOCs) owning fibre even though it was not their core business. Negotiations were ongoing with the relevant minister so that BBI could do the job. He said the findings were administrative in nature. The entity remained unfunded by the Department. R40m had been spent on new equipment.
Assets had increased by R14m, and cash was maintained at R88m. Revenue had been increasing year-on-year by 1%, while operational expenses had decreased by 5% year-on-year.

Ms Khumalo said the company had adopted in 2019 a strategy which focused on both the now and the future.  Further investment for an additional capacity upgrade was required in order to run a resilient network smoothly. A scalable network was required to match the growing demand for bandwidth. One of the key challenges that needed to be addressed urgently was the lack of available capacity on the network which was required both for redundancy and direct customer provisioning. BBI had also identified over R1 billion of critical investment in infrastructure that needed to be carried out over the next four years. The key challenge was the funding mechanism for these projects, especially at a time when BBI was expected to be self-funding and self-sustaining.

BBI had an opportunity to grow its 10% wholesale market share through capacity investment. It was positioned to take on the role of the Southern African Development Community (SADC) integrator of choice due to established relationships and the long term development of the Southern African Telecommunications Association (SATA) relationships which support the BBI. Its projects and assets were all revenue generating assets. Over the years, it had increased its customer base and managed to conclude contracts with its customers. This had resulted in steady cashflows from these customers/contracts, and a funding structure backed by these contracts and cashflows was considered the most appropriate for the company. The board and the Minister were working on a funding package for the merger with Sentech which was expected to be finalised by 1 April 2022. The board was engaging with all employees in the head office and regions, to have them on board.

(Tables and graphs were shown to illustrate financial information: see attached for further details)

NEMISA Annual Report 2020/21

Ms Molebogeng Leshabane, Board Chairperson, said NEMISA had achieved 91% of its annual targets --  ten out of eleven targets. There were areas that had shown improvements, but there were challenges regarding the massification of the skills programme. The entity had improved compared to the prior year.

Mr Trevor Rammitlwa, CEO, NEMISA, said no achievements had been recorded on the e-Astuteness development programme due to Covid-19 disruptions. The planned target was to train 30 000 citizens, but it had managed only 16 018. COVID had a limiting effect in carrying out face-to-face training, which was the mode used to reach disadvantaged communities. 117 learners were trained to become creative media practitioners against a target of 114. The over-achievement was due to the extended capacity of the programme that had resulted in additional learners being enrolled. The target for the About Knowledge for Innovation programme was to host one hackathon, and a virtual three-day Data Science Innovation Hackathon was hosted across all nine provinces.  An outcomes report had been developed.

Regarding strategies to overcome non-performance, the entity had entered into partnerships with entities that had infrastructure for learners to access learning tools and connectivity, such as the Small Enterprise Development Agency (SEDA), technical and vocational education and training (TVET) colleges, schools and innovation hubs. It was planned to introduce pop-up laboratories resourced with computers and connectivity to reach rural and far flung areas, and to increase capacity by introducing TVET colleges as CoLabs. Critical partnerships with the Department of Basic Education (DBE), the Department of Higher Education and Training (DHET), the Media Information and Communications Technologies (MICT) Sector Education and Training Authority (SETA) and other entities, were in the process of implementation to increase performance.

Non-compliance matters involved irregular expenditure of R8 600, while fruitless and wasteful expenditure was standing at R4 500.

Mr Rammitlwa said the organisation had undertaken to carry out a strategy review to expand and deliver more in the provinces and rural areas, to expand partnerships and review its funding model to ensure it was sustainable going forward. It had further decided to review its structure to ensure it was capacitated to deliver on its mandate.

The chairperson concluded by stating that the lessons learnt during this financial year would help in making improvements in the next financial year, to ensure learners were able to study independently online through providing conducive conditions. During the year under review, most learners had registered for the programme but had failed to finish the course for various reasons. The entity had tried to diagnose what the problem was, and had addressed them. Support was required to ensure learners understood the material in order to complete the course.

(Tables and graphs were shown to illustrate financial information: see attached for further details)

USAASA and USAF Annual Reports 2020/21

Ms Mapuleng Moropa, Board Member, reported that USAASA had achieved three of its five annual targets. It was affected by the pandemic because service providers had to be physically on-site. The entity had received an unqualified audit with emphasis, because areas of concern were recurring. On the positive side, a lot had been done by the management and the Department to fast-track the rollout of the Broadcasting Digital Migration (BDM) by designing a new implementation model.

Ms Chwayita Madikizela, Acting CEO, reporting on areas of USAASA’s under-achievement, and said the capacitation of the revised project management office (PMO) structure to manage the broadcasting digital migration rollout had not taken place by end of the financial year. Regarding partnerships with organs of state to provide broadband activity, the final appointment process had not materialised as the transversal contract was not in line with the products and services required by USAASA as the procuring organ of state.

She also gave an account about the under-achievements of USAF. Referring to the BDM Phase 1, which involved the installation of 860 000 set-top-boxes STBs), 12 872 were installed and only 830 units installed met the signed service level agreement (SLA) standard. The shortage of accredited and competent installers in priority provinces further contributed to the low installation rate. Phase 2 involved rolling out the voucher system implementation plan, which finalised although not sanctioned as required in terms of the initial annual performance plan (APP). In addition, the target was not achieved on the subsidised digital television installations coordinated in identified provinces due to the non-responsiveness of the bid.

Regarding the broadband connectivity rollout, the target of 300 sites in King Sabata Dalindyebo, Mhlontlo, Ingquza Hill and Port St Johns local municipalities was not achieved due to the misalignment of the master service agreement to the drafted SLA, as well as both parties not reaching an agreement. A budget rollover request had been sent to National Treasury for the retention of funds following the conclusion of the audit process. There had been some action taken to fast track the entire BDM programme and broadband.

Mr Frik Nieman, CFO, said USAASA had received an unqualified audit opinion with 17 findings, of which 14 had been resolved before submission to the Auditor General (AG). Only three were outstanding and were being investigated. The entity had a budget of R461m, and expenditure had amounted to R65m.
At USAF, none of the five planned targets was achieved. The entity had been allocated a budget of R563m and had spent R30.8m.

(Tables and graphs were shown to illustrate financial information: see attached for further information)

Discussion

Mr Z Mbhele (DA) said his concern stemmed from the presentation about the BDM process. What had been heard so far did not quell the Committee's disquiet. If the March 2022 deadline for switching over to digital was not met, a third term would be added to South Africa's lexicon that already existed, like "loadshedding" and ”watershedding" -- and the new term would be "signalshedding." His concern was about the deadline. He asked what the final stopgap measure was if they did not do the things within their means and capacity to reach the April 2022 deadline. What remedial actions could they plan for now and partnerships could be entered into for that eventuality? South Africans could not afford to live with unfounded opportunism for that much longer.

The Chairperson asked ICASA if the dates would be attainable, or if delays should be expected on the provisional or temporary spectrum. He remarked that ICASA had been considerate in putting the interests of the country in the centre without being driven more by industry concerns. There had been improvements in audit outcomes. SCM and consequence management issues had been addressed. He asked what plans were in place to avoid a recurrence of not being able to pay SMEs on time.

Dr Modimoeng said it was not easy to defend public interests. ICASA was a solution-driven regulator. The realisation that the entity was navigating a complex period was appreciated. The decision taken on spectrum could be explained to South Africans. On 26 November 2021, the entity would announce the allocations and administrative assignments. There would be certainty.

Ms Meyer said the audit committee and the ICASA council had prioritised the payment of suppliers within 30 days. On a quarterly basis, progress would be reported to both units. Service providers with the correct email addresses and contact numbers had been identified and would be paid as soon as possible. Monthly, the finance department would reconcile purchase orders and payments made to identify what was missing. All the processes had been communicated to existing suppliers, indicating that a turnaround would be within 14 days.

The Chairperson wanted to find out from the FPB what plans were in place to ensure needed skills were secured and not lost so that the entity became functional and filled the vacancies, because it kept on having people in acting positions and losing skills in the process.

Ms Mkosi replied that the challenge of having acting executives at the strategic level was a concern for the council. The FPB had been encouraged by the involvement of the Minister in prioritising this key area, because the problem that had worsened the attraction and retention of needed skills was moratorium put on hiring personnel. The Minister had given the entity an assurance there would be no merger with Sentech, and this would now enable the entity to attract the much needed skills, and salary adjustments would be addressed so that the entity could advertise and recruit for strategic positions.

The Chairperson commended ZADNA for being financially sustainable and independent. He requested the entity to get rid of the 15 findings that it had reduced from 23, and wanted to know the implications of those 15 findings to make sure there were no recurrences.

Mr Wesi said ZADNA was working towards zero audit findings. The key milestone was that it had reduced audit findings to a manageable 12. The entity would now see what further controls should be implemented to ensure it reaches zero. There was a process in place to eliminate all repeat findings and to start to track them. Findings brought up by the AG had been resolved because they were not of a material nature. The internal auditors had been told the entity was relying on their oversight and guidance to eliminate repeat findings. Because of its size, the entity would not be able to implement a comprehensive internal control system.

The Chairperson wanted to find out from Sentech if the clean audit with material findings was the result of having acting financial personnel. The Committee needed to get assurances on the processes, timelines and costs regarding the analogue switch. He asked the organisation to comment on the fruitless and wasteful expenditure that occurred during the year under review, besides the historical expenditure.

Mr Booi responded on why they have seemed to have regressed after maintaining a clean audit for years, and stated the challenge was the uncertainty about the merger with FPB that had been talked about since 2016. This uncertainty created problems, because the entity had three accountants in its finance department, but now it had lost all three chartered accountants (CAs) that it had in the past. The entity now had short term contracts, because of the moratorium on hiring. Because of the transition faced at the time of Covid, the contract of the acting CFO had come to an end and the entity had had to find someone in an acting capacity to do the work.

[PMG was following the meeting on YouTube due to loadshedding and the livestream was cut short before the end of the meeting]