The Auditor-General has made significant strides in financial accountability, saving taxpayers an impressive R3.47 billion for the 2023/2024 fiscal year.
This achievement comes in the context of auditing a staggering R3.7 trillion government budget, underscoring the A-G’s vital role in enhancing public sector oversight, as highlighted during a recent briefing to the Parliamentary Standing Committee on the Auditor General.
A-G Tsakane Maluleke, who led the briefing, shared that the A-G successfully recovered R1.55 billion in financial losses, with an additional R1.14bn still in the recovery process.
Furthermore, the agency's proactive measures have prevented an estimated R780 million in potential financial losses across various government departments, municipalities, and entities.
In her report, Maluleke outlined the concerning findings from her latest audits, revealing the identification of 626 cases of Misappropriated Expenditure (MIs).
An MI is any non-compliance with legislation, fraud, theft or breach of fiduciary duty that could result in a material financial loss, misuse of public funds or substantial harm to a public sector institution or the public
These MIs included instances of non-compliance, suspected fraud, and financial mismanagement that have adversely affected public resources and institutions.
Out of these cases, 500 were associated with material financial loss, while 51 indicated potential harm to the public, 66 suggested substantial harm to public institutions, and nine reflected misuse of essential public resources.
The AG further emphasized the importance of trust in public institutions, stating that the integrity of the AGSA has been internationally recognised, evidenced by their appointment as external auditors for prestigious organisations such as Unesco and the International Centre for Genetic Engineering and Biotechnology (ICGEB).
Highlighting the office’s effectiveness, Maluleke pointed out that the A-G achieved an impressive 85% of its targets and received a clean audit opinion this year.
She said this reflected a commitment to upholding the same standards of accountability and transparency that it expected from its auditees.
At the heart of these efforts was the A-G’s culture-shift strategy launched in 2021, aimed at deeply resonating with the lived realities of South Africans.
“When I envisaged our Culture Shift 2030 Strategy, my overall aim was to strengthen democratic values and principles by shifting the public sector culture to a state where it is consistently characterised by performance, accountability, transparency and integrity, as experienced by the citizens of South Africa. At the heart of this ambition lies the important principle of trust,” Maluleke said.
She said the culture shift strategy aims to deepen insights to reflect the lived realities of citizens, to help guide insight journeys as an organisation and developed a multi-year audit plan (MYAP), which will help guide insights into critical areas of service delivery.
The committee welcomed the A-G’s culture shift strategy, which entails plotting auditees not only according to mere compliance, but also focusing on service delivery performance.
“This shows that 23% of government departments and entities, and 45% of municipalities are currently doing harm, while 40% of departments and entities and 43% of municipalities are not doing the basics,” the Committee noted.
“The committee commends the A-G for receiving a clean audit opinion for the year under review. A functional office of the A-G is important as it results in a positive shift towards accountability and public sector performance.”
The A-G trainee auditor scheme has reached a milestone of producing 2 017 chartered accountants (CAs) since its inception.
“This is a proud hallmark of the Auditor-General of South Africa legacy and our contribution to advancing the transformation and professionalisation of the audit sector in South Africa,” Maluleke said.
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