While the Prime Minister's emphasis on internal accountability is well-intentioned, critics argue that it may unfairly shift the focus away from the role of professional auditors. If audit firms are not providing an accurate picture of a company's financial health, the issue may lie in the standards and expectations set for these firms rather than just the internal processes of the investment company. Simply blaming internal teams for relying on audits ignores the fact that these firms are hired specifically to provide expert, independent verification.
There is also a risk that this rhetoric could lead to a 'blame game' where internal management teams become overly cautious or defensive, potentially stifling the growth-oriented investment strategies that funds like KWAP need to generate returns. If the message is that internal teams are solely responsible for every loss, it could discourage the bold, strategic decision-making required to navigate competitive markets. This could lead to a stagnation of funds, which would ultimately harm the very civil servants the government aims to protect.
Furthermore, the complexity of modern financial instruments often requires specialized knowledge that may not be present within every board of directors. Relying on internal teams without robust, high-quality external verification could lead to blind spots. Instead of downplaying the role of auditors, the government might be better served by strengthening the regulatory requirements for audit firms and ensuring that they are held to higher standards of transparency and accuracy when dealing with public funds.