A reliable financial information system directly benefits a country's Gross Domestic Product (GDP) and Human Development Index (HDI). How does the R2 billion stolen from Tembisa Hospital illustrate the negative effect of misstated financial information?

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The misstated procurement records allowed R2 billion to leave the public health system, reducing the quality of healthcare, thus negatively affecting South Africa's HDI.

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The GDP was unaffected because the money stayed within South Africa's borders.

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The GDP increased because the stolen money was spent on luxury goods that contributed to economic activity.

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The HDI improved because more BEE service providers were registered with the government procurement system.

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The HDI only measures education levels and that was not affected by healthcare funding losses.

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A reliable financial information system directly benefits a country's Gross Dome...

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