The draft Public Audit Bill does not strengthen accountability in the public sector, says Dieter Gloeck, executive president of the Southern African Institute of Government Auditors.

The bill confers absolute powers on the office of the auditor-general in that it is permitted to determine the nature and scope of work and to choose assistants outside the office, including setting the procedures for the handling of complaints.

The bill has been criticised by the public sector for eroding the independence of the auditor-general's office, since it would be reporting on its own work and setting its own standards.

Gloeck said SA's constitution required the auditing of all public sector departments, municipalities and public funded entities.

The draft Public Audit Bill was released in May this year for public comment. The bill seeks to provide for the auditing of public sector institutions. The auditor-general was recognised as an institution supporting constitutional democracy through auditing and reporting, said Gloeck. The bill prescribed functions to the auditor-general necessary for the office to perform effectively.

In terms of the bill, the auditor-general was allowed to provide services (other than audit) to the very same institutions on which the office was allowed to express an independent audit opinion, said Gloeck. "This meant that the office would be reporting on its own work."

At a time when auditing firms in the private sector were voluntarily separating audit from other services within their firms, the bill was going against the trend by introducing and legalising such questionable practices, he said.

"This was not in the public interest."

Gloeck said the bill also conferred absolute powers on the office of the auditor-general. The office could act as accounting service provider, consultant and adviser, he said.

The bill would create an environment not conducive to the performance of an independent audit function.

With acknowledgements to Sanchia Temkin and the Business Day.