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Auditor-general, Terence Nombembe, says the Compensation Fund remains in financial shambles.
He cited various matters he found troubling after assessing the Fund's 2011/12 annual report, tabled by Labour Minister Mildred Oliphant in parliament on Friday.
The Auditor General said inadequate monitoring and controls at the fund were the reasons for his qualified audit opinion.
He also called into question the authenticity of certain information in the financial statements.
The Compensation Fund has long been dogged by allegations of fraud and mismanagement.
