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Auditor-General Tsakani Maluleke has strongly advocated for enhanced service delivery and better inter-governmental coordination to continue improving audit outcomes under the Public Finance Management Act (PFMA). At a recent briefing with the parliamentary Standing Committee on Public Accounts, Maluleke presented the latest PFMA audit outcomes, which show a significant improvement in fiscal transparency under the South African government's administration.
During the briefing held on November 27, Maluleke highlighted that of the 415 auditees in the 2023/24 audit period, 142 achieved clean audits, marking a substantial rise from the 93 in the previous period. These 142 entities, comprising 63 departments and 79 public entities, collectively managed R266.28-billion or 13% of the total national and provincial expenditure budget of R2.07-trillion. Another 168 entities earned unqualified audits with findings, suggesting areas where further enhancements are needed.
Despite these improvements, Maluleke emphasized the need for continued vigilance, pointing out that 50 auditees had regressed, and many remain too comfortable within the 'unqualified audit opinion with findings' category. This complacency, she warned, threatens their ability to achieve clean audit statuses in future assessments.
Maluleke also touched on the performance during the sixth administration, which had to navigate the challenges posed by the COVID-19 pandemic and natural disasters like the floods in KwaZulu-Natal and the Eastern Cape. She commended the administration's response to these events but also noted areas needing substantial improvement, particularly in performance reporting and legislative compliance.
The AG stressed the urgency for the current Government of National Unity to sustain momentum and focus sharply on service delivery mechanisms that directly affect the lives of South Africans. She asserted that improved service delivery and prudent fiscal management are only achievable through robust, cooperative, and capable institutions adhering to a high standard of accountability, transparency, and integrity.
Tsakani Maluleke further called for immediate action to enhance performance planning, monitoring, and reporting disciplines in auditees crucial to South Africa’s socio-economic environment. These entities alone are responsible for R1.6-trillion, about 77% of the government's expenditure, exerting significant influence on the nation's development trajectory and the wellbeing of its citizens.
As South Africa continues to face economic pressures and societal challenges, the Auditor-General’s report serves as a crucial reminder of the intrinsic link between stringent financial management, accountable governance, and effective service delivery.