Masemola’s prosecution —is ita game changer?

THE persistent governance crisis in South Africa's public sector has long been seen as a political problem, with elected officials typically cast as the main agents of corruption and maladministration.

- DR RENEVA FOURIE

However, recent findings in the Auditor-General’s Consolidated General Report on National and Provincial Audit Outcomes for 2024-25 point toa broader, systemic failure rooted in the state’s administrative machinery.

This requires greater attention to the role of technocrats - especially accounting officers and senior officials responsible for financial oversight and compliance - in discussions of accountability.

The Auditor-General’s report presents a sobering picture of stagnation and regression in public financial management. Only 151 clean audits were recorded among 417 auditees, with 266 entities responsible for 88% of the R2.21 trillion expenditure budget and continuing to lack the institutional capability to produce credible financial and performance reports or to ensure compliance with legislation.

Audit outcome regressions affected 45 auditees overseeing a combined budget of R523.42 billion. The most common outcome remained ‘unqualified audits with findings’ at 161 auditees, many of whom achieved it only after correcting material misstatements identified during the audit.

A total of 224 auditees, or 58%, had material findings on compliance with key legislation, while 252 auditees or 60%, incurred irregular expenditure amounting to R42.58 billion, primarily driven by procurement and contract management failures.

Fruitless and wasteful expenditure reached R1.42 billion, with high-impact auditees responsible for 84% of this amount. In addition, 159 auditees or 41% submitted financial statements containing material misstatements and over half of the performance reports required corrections to become useful and reliable.