As part of her mandate to audit government departments and public entities, Auditor-General Tsakani Maluleke recently highlighted a major problem of non-compliance with the rule of law, leading to budget overruns of over R38.8 billion. This alarming situation was highlighted during a presentation to the Chairs of Parliament’s Portfolio Committees, chaired by the Chair of the House of Committees, Cedric Frolick.
Highlighting a climate of tolerance for non-compliance with financial and governance rules, the Auditor-General warned of the consequences of this phenomenon on public finances. Over the past five years, more than R14.3 billion has been lost due to payments made for goods and services not received, as well as inefficient use of resources.
A worrying aspect is the surge in irregular expenditure, amounting to over R49.5 billion in the current financial year, up from previous periods. This significant increase is attributable to negligent and inefficient financial executives and departmental heads, who have failed to take the necessary steps to rectify the out-of-standard expenditure, thereby contributing to the accumulation of amounts over the years.
The Auditor-General stressed that it was imperative to put in place accountability measures to address these issues, and alluded to the enhanced powers that the Auditor-General has been given since the amendment of the Public Audit Act in 2019. These legislative changes have strengthened the Auditor-General’s ability to address financial non-compliance and irresponsibility by public officials.
However, it is important to note that despite these new powers, the Auditor-General remains limited in his actions. Indeed, while these enhanced powers allow for the tracking of significant irregularities such as payments for goods and services not received, unfair and uncompetitive procurement procedures, and poorly protected state assets, they do not give the Auditor General the power to criminally prosecute offenders.
In the interest of transparency and good governance, the Auditor General called on parliamentary oversight committees to step up their efforts to ensure the accountability of state officials. Indeed, the country’s weak economic growth, projected to average 1.8% over the next three years, is putting additional pressure on public finances.
Thus, the need to address poor payment practices and ensure effective financial management becomes more crucial than ever. In a context where every rand counts, it is imperative that concrete measures are taken to safeguard public resources and ensure efficient use of taxpayer funds.
In conclusion, Auditor General Tsakani Maluleke stressed the importance of combating financial irregularities and strengthening public governance to ensure transparency and accountability of state officials. This fight for responsible and transparent financial management is essential to ensure the long-term sustainability of public finances and strengthen citizens’ trust in government institutions.