"Crass materialism is a worrying trend when officials take what doesn't belong to them in the belief that there will be no consequences," he added.
He said the world was facing an economic crisis which brought into focus the scarcity of resources.
"SA must tighten its belt. As Minister Gordhan said in his medium-term budget policy speech, fiscal constraints force government to choose between competing objectives".
The PSACF was formed with the aim of helping the public sector source skilled and experienced audit committee members and to help current members of public sector audit committees discharge their duties more effectively.
Other aims, CEO of The Institute of Internal Auditors South Africa, Claudell von Eck, told the launch included raising awareness of matters that related to the function, duties and composition of public sector auditor committees.
She said that the PSACF "had to be alert to and consider matters concerning public sector audit committees in the public domain."
Another function of the PSACF was to provide leadership on the function, of public sector audit committees by discussing, researching and developing and disseminating position papers and good governance guidance.
"The PSACF should also provide a database of individuals who are experienced and qualified to serve as public sector audit committee members and provide a forum for the mentoring of public sector audit committee members."
She said there had been "a real decay of ethical principles" in SA.
"This initiative could not have come sooner as SA needs to see the strengthening of its leadership layer."
According to the PSACF's launch statement, the Auditor-General had found on several occasions governance weaknesses and other challenges on the part of management and boards of public sector entities.
"This situation is of national concern as it impedes government's ability to meet its service delivery targets," the statement added.
Addressing the launch, the Auditor-General Terence Nombembe said that that the existence of the PSACF meant "rolling up our sleeves to get the job done."
He said that the PSACF meant that a platform had been created "where we can carry out continuous, consistent work and not stop-start work with a commitment to deliver meaningful results."
He added that there were many professionals who wanted to help make government efficient, but they did not know where to start.
At the PSACF they will find a comfortable home."
The PSACF is to be funded by National Treasury and it will be governed by a steering committee made up of representatives of its founding bodies.