Auditor-General Tsakani Maluleke Calls for Immediate Professionalization of Local Government Amidst Financial Irregularities

In a profound deliberation with members of the Parliamentary Press Gallery Association, Auditor-General Tsakani Maluleke illustrated a financial landscape rife with discrepancies, prompting an immediate call for the professionalization of local governments. Material irregularities, encompassing non-compliance, fraud, theft, or fiduciary breaches, continue to plague South Africa's public sector. Maluleke pointed out that the Public Finance Management Act report laid bare a total loss of R14-billion, with only a fraction recovered to date, standing at R1.29-billion.

To understand the gravity, one must consider that these figures stem from amendments made to the Public Audit Act in 2019, which empowered the Auditor-General of South Africa (AGSA) to implement measures against material irregularities. Despite AGSA's efforts, the bleak reality as of September 2023 is that only a portion of these losses is recoverable. Notwithstanding the R560-million mitigated in potential losses and another R700-million in the process of recovery, Maluleke emphasized that a gap persists, demonstrating a worrying struggle to close in on the full R14-billion.

Moreover, Maluleke elaborated on the ongoing challenges faced within various departments and municipalities, where financial governance appears to be perpetually under strain. While some improvements are noticeable, particularly at the provincial and national levels, the local government picture remains disconcerting. An alarming case was that of the Matjhabeng municipality in Free State, where a concerning R7-million overpayment to a contractor for stormwater drainage work sparked an extensive audit process eventually leading to arrests—but with slim prospects of full fund recovery.

The core problem, as Maluleke delineates, is not solely the mismanagement of resources but the critical need for proficient and ethically sound individuals to oversee state entities. Without rapid and robust supervision, the chances of recouping misallocated funds significantly dip. This sheer professionalism is not yet uniformly present within local governments, an issue so pressing that, as Maluleke warns, some municipal managers reveal a lack of basic financial literacy—a significant hindrance to competent governance.

In a broader view, Maluleke's exposition serves as a clarion call for systemic reform within the entirety of South Africa's public sector management structures. Introducing and enforcing a standard that assures individuals in critical financial positions possess the necessary skills and ethical fortitude to perform their duties is paramount. The efficient running of local governments hinges on its leaders' competence and integrity, without which the battle against mismanagement and financial loss cannot be won.