Auditor-general (AG) Tsakani Maluleke has criticised the “minimal progress” towards improving government audit results, with only 151 government departments, or 36%, receiving unqualified audit opinions in 2024/25.
This slightly surpassed the 142 achieved in 2023/24 and showed the AG’s audit counsel had not been “adequately heeded”.
Briefing the media on the consolidated general report on national and provincial outcomes for 2024/25 in Pretoria on Thursday, Maluleke said this is a concerning trend as the AG has called on the seventh administration to build on the improved audit outcomes delivered by the sixth administration.
The AG previously drew attention to the underperformance of high-impact auditees contributing to the delivery of education, skills development and employment, energy, financial sustainability, health services, infrastructure development, water and sanitation and roads and transport.
In 2024/25, auditees incurred R1.4bn in fruitless and wasteful expenditure, down from R3.5bn recorded in the previous year. High-impact auditees were responsible for 84% (R1.19bn) of the amount.
The AG said fruitless and wasteful expenditure of R1.6bn remains under assessment and has not been disclosed, “of which R1.28bn has exceeded the prescribed resolution timelines”.
Our audits show no clear improvement in audit outcomes, financial management, service delivery performance, accountability, transparency or institutional integrity. This shows our audit counsel has not been adequately heeded
— Tsakani Maluleke, auditor-general
Claims against departments accounted for R116bn, departmental accruals R51.2bn and deficits at 158 auditees R58.08bn.
There were 161 material irregularities with an estimated loss of R9.1bn due to:
- paying for items not received;
- revenue non-collection;
- penalties for late payments;
- poor asset safeguarding; and
- fraud and non-compliance.
The AG said though the 151 auditees that received clean audits represented 36% of the total number of auditees, “they look after only 12% of the national and provincial expenditure budget”.
The 266 auditees that did not receive clean audits were responsible for managing 88% of the total expenditure budget but “continue to lack the institutional capability to produce credible financial and performance reports or ensure compliance with legislation”.
She said a total of:
- 175 auditees received unqualified opinion with findings in 2024/25, an increase from the 161 recorded in the previous year;
- 73 received qualified opinions with findings; and
- five received disclaimers, an increase from the one auditee recorded in 2023/24.
Maluleke said when the current administration took office, “I recommended attention be paid to improving the capability of institutions to deliver on their mandates and strategic government programmes and priorities.
“I highlighted trust in public institutions could be strengthened by ensuring institutions across the national, provincial and local government spheres collectively plan and systematically and purposefully work towards a culture of performance, accountability, transparency and institutional integrity.”
One year into the new administration, “Our audits show no clear improvement in audit outcomes, financial management, service delivery performance, accountability, transparency or institutional integrity. This shows our audit counsel has not been adequately heeded.”
It is because role players in the accountability ecosystem do not fulfil their designated and legislative roles consistently or effectively
— Maluleke
When high-impact auditees in national and provincial government failed to properly manage their performance, finances, infrastructure and resources, “such failures result in non-delivery on government initiatives aimed at improving the lives of South Africans and alleviating poverty and hardship.
“Wasted money and resources means reduced funding for service delivery programmes and, eventually, a greater burden on taxpayers.”
At 18, the DA-run Western Cape led the provinces with the highest rate of clean audits, followed by:
- Gauteng with 13;
- KwaZulu-Natal with seven;
- Limpopo, the Northern Cape and Eastern Cape (six each);
- Mpumalanga with four; and
- the North West and Free State (three each).
With regards to 19 audited state-owned enterprises:
- The Development Bank of Southern Africa and the SA Nuclear Energy Corporation were the only two SOEs that received clean audits.
- The Land Bank, SABC, Transnet and Industrial Development Corporation, among others, received unqualified audit opinions with findings.
- Eskom received a qualified opinion with findings.
- The SA Post Office, SA Airways and Denel received disclaimers, which signifies the company’s accounts cannot be relied on and often suggests the company is in a serious financial state.
“Throughout our report, we highlight weaknesses in governance, oversight, accountability, institutional capability and intergovernmental processes.”
Such weaknesses were not the result of unclear mandates, ill-defined legal responsibilities or government processes, a lack of structures or even insufficient funding, she added. “It is because role players in the accountability ecosystem do not fulfil their designated and legislative roles consistently or effectively.”
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