The auditor-general (AG) has become the victim of theft at several of its provincial offices, with the latest being the recent theft of laptops worth millions of rands.
The AG says 464 new laptop computers, valued at R5.1 million, were stolen from its Pretoria headquarters, and the theft was reported when the crime was noticed, about two weeks ago. In the past three months, the AG has experienced a series of break-ins at its offices in the North West, Mpumalanga and Gauteng, where valuable assets, including computers, were stolen, it says.
The latest theft of notebooks, which were stored in a secure storage area, was followed by a police investigation, which led to the arrest of two junior employees based at head office, who dealt with computer dispatching for the organisation.
Although the AG would not comment in detail on this matter, as investigations are under way, it notes that the office, as a supporter of ethical conduct and good corporate governance, expects and encourages its employees to lead by example at all times.
"Employees are required to conduct themselves in a manner that will enable the organisation to continue to set an example to those it audits and South African taxpayers in general."
Serious issues
The theft has raised questions as to how it was possible to move so many laptops without anyone noticing, and whether the suspects had been running a business in PC equipment on the side. Mark Walker, director of insights and verticals for the IDC's Africa and Turkey region, points out that the number of laptops would fill a 20-foot container.
Based on the AG's value of the stolen laptops, assuming each machine is worth the same, this breaks down to R10 991 each. According to the Incredible Connection Web site, this sort of spending would be sufficient for a laptop with an Intel Core 2.1GHz processor, a 2GB graphics card, a 1TB hard drive, and 8GB of RAM.
Walker says high-level specifications are understandable if the machines are to be used for serious auditing functions and by fairly high-level staff. He adds, however, despite the AG stating the laptops were new, there are concerns over whether the machines contained any sensitive data, given the nature of the AG's job.
The AG was established in 1996, under chapter nine of the Constitution, as one of the state institutions supporting constitutional democracy. The independent office produces annual audit reports on all government departments, public entities, municipalities and public institutions.
In addition, reports on discretionary audits, performance audits, and other special audits are also produced.
No further comment
AG spokesman Africa Boso declined to comment on why the office spent so much on laptops and also declined to disclose the value of the other stolen computing equipment. The office has been in the media several times, after highlighting wasteful government spending on consultants, as well as a lack of internal controls.
Earlier this year, finance minister Pravin Gordhan stated there would be "a comprehensive review of expenditure, focusing on both spending controls and value for money in government programmes and agencies".
Three years ago, the AG had 2 500 mobile users, which it said were at "constant risk of laptop theft" in a tender document. "While the physical asset may be covered for potential losses, the actual loss of information due to factors such as industrial espionage will tarnish the reputation of the AG office."
Currently, the office has 2 891 staff and its employees have access to a facility to connect remotely to the AG's systems from laptop computers. The AG did not name the arrested staff members and ITWeb was not able to obtain an update from the South African Police Service.
In a statement, the AG says it believes in, and supports, the principle of "innocent until proven guilty". "We believe that these employees should be afforded that courtesy - the fact that they have been arrested should not be interpreted to suggest that they are guilty."
It says it will fully cooperate with the law enforcement agencies but will only make detailed public comments on the matter when the investigation has been completed.
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