Financial crisis looms over KZN governance

Urgent action needed to safeguard services

- THAMI MAGUBANE

KWAZULU-NATAL government departments are facing increased financial risk, with regressive audit opinions becoming commonplace.

The dire warning was made by the Auditor General of South Africa, Tsakane Maluleke, following the audit report for the 2024-2025 financial year, examining government departments and entities in KZN.

The report showed a regression in the audit outcomes, revealing that government departments and entities are struggling.

However, it noted that the Department of Agriculture had improved its findings to achieve a clean audit. Six departments and entities had not made progress towards a clean audit, while the Department of Cooperative Governance and Traditional Affairs has regressed to unqualified with findings. The Department of Health moved to qualified with findings. Three audit reports from entities were outstanding.

The report shocked members of the legislature, who argued that it painted a worrying picture, especially regarding finances. The AGSA report highlighted increased pressure on government finances and called for careful action to mitigate against a financial crisis.

“The financial health of the province remains in a precarious position, calling for greater austerity measures and discipline in how the funds are handled,” it stated.