Head of operations at the Office of the Ombudsman advocate Ingrid Husselmann has said the Ministry of Defence and Veteran Affairs is required to account for the expenditure of public funds like any other ministry or government agency because it operates under the State Finance Act.
She says the ministry is subject to parliamentary oversight and needs to submit its budget annually to parliament for approval. In addition, the ministry must report on its overall expenditure and justify its use of public funds.
Her sentiments come after a parliamentary standing committee on public accounts report for the financial year ended 31 March 2019, which highlighted concerns regarding the ministry denying access to military equipment for inspection, citing security reasons.
Husselmann states that there are several standing committees of the National Assembly that are also tasked to scrutinise the financial statements and review the expenditures and activities of the ministry.
“The auditor general also audits, like it audits all other government ministries. The Ministry of Defence [and Veterans Affairs] is no exception to make sure that funds were used properly and these reports are made available to the public through parliament,” says Husselmann.
She adds that the ministry is obliged to submit annual financial statements that clearly detail how allocated funds were spent, and that the ministry is subject to the Public Procurement Act. This, she says, is especially relevant with regards to large contracts, although she acknowledges that certain exceptions are made for “security-related expenditures”.
Husselmann raises concerns about state defence companies – such as the August 26 Group – that are not subject to public audits and operate with limited external financial disclosure due to national security considerations, but are still subject to the provisions of the Companies Act.
She believes that the Public Finance Management Act (which is set to repeal the State Finance Act) as well as the implementation of the Access to Information Act will introduce stronger accountability measures in future.
“If the oversight mechanism is strengthened, it helps to ensure that public funds that are allocated to [the defence ministry] are used effectively in the public interest, while balancing the very valid and important need for confidentiality in security matters,” Husselmann says.
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