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South Africa's Struggle with Government Accountability and Oversight: Perspectives from AGSA’s Recent Audit Report

Published November 28, 2024
2 months ago

In the recently released audit report by the Auditor-General of South Africa (AGSA), both signs of progress and lingering challenges in terms of accountability and compliance within national and provincial government departments are evident. Despite some governmental entities showing improvement, a broader culture of accountability is yet to be fully embraced.





Auditor-General Tsakani Maluleke highlighted that while improvements were noted across various sectors, the overall institutional capacity required for consistent, transparent, and credible financial performance reporting is still underdeveloped. Delivering a message to the 7th administration and Parliament, she stressed the necessity to counteract the prevailing culture lacking accountability and consequences.


The report detailed that 144 auditees, or 35% of the total, achieved clean audits—an improvement compared to previous years. However, the substantial portion of audits that did not meet this standard signals ongoing issues with financial controls and compliance. This audit performance is particularly concerning for high-impact auditees responsible for significant portions of the government's R2 trillion annual expenditure.


Key issues include perennial delayed financial reporting by major funds such as the Compensation Fund and the Unemployment Insurance Fund (UIF), which continuously jeopardize the oversight and accountability mechanisms. The National Financial Aid Scheme (NSFAS) was also highlighted for its failure to deliver annual financial statements on time.


Furthermore, the audit revealed R43.9 billion in irregular expenditures related to procurement, and non-compliance incidences persisted in about 32% of the audited entities. Issues extend to deficient IT controls, inadequate service delivery verification, and improper project management, which collectively undermine efficient governance and service delivery vital for education, healthcare, and infrastructure development.


Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), emphasized the tangible impacts of these audit outcomes on service delivery. OUTA has expressed commitment to driving systemic change alongside communities and civil society to ensure that transparency, ethical leadership, and value-based spending become standard practices in South African public institutions.


Moreover, the Auditor-General now possesses extended legal powers to address material irregularities, which include making binding remedial actions and referring matters to law enforcement for investigation. This enhancement aims to strengthen the accountability mechanisms further.


As noted by the AGSA and entities like OUTA, understanding and engaging with these audit reports is crucial for parliamentarians, public servants, and citizens to grasp the extent of reforms needed within South Africa’s public sector.


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