The Auditor General of South Africa met with members of the KwaZulu-Natal Legislature on Thursday.
Image: KZN Legislature Website
Auditor General of South Africa Tsakani Maluleke urged members of the KwaZulu-Natal Legislature to be disciplined with their spend, fix the basics, and improve service delivery in the province.
On Thursday, Maluleke presented the KZN audit outcomes for the 2024/2025 financial year and the status of Material Irregularities (MI) as at 31 August 2025. Maluleke said that the overall audit outcomes indicate a net regression. The AGSA identified 18 MIs on non-compliance and suspected fraud, resulting in material financial losses estimated at R280 million.
The AGSA report found that the agriculture department improved to a clean audit; however, oversight over its 100% owned public entity, the Agri Business Development Trust, was not effective, as this entity was qualified and had an MI finding on payments made to beneficiaries.
The AGSA report also found that the Department of Health regressed to a qualified audit opinion due to management’s slow response in addressing control weaknesses related to irregular expenditure and asset management.
Furthermore, Co-operative Governance and Traditional Affairs (CoGTA) experienced a decline to an unqualified opinion with findings due to its failure to pay creditors within the required timeframe.
Maluleke said that through the MI process, the AGSA has observed that accounting officers are increasingly taking appropriate steps to address material irregularities. As a result,14 of the 18 MIs have been successfully resolved. She said the responsible officials have been identified and the disciplinary process are ongoing.
“The actions taken by the accounting officers have led to a positive shift in culture, with auditees improving their internal controls. As a result, there has been no recurrence of the same MIs among the auditees,” she said.
According to the AGSA report:
Maluleke advised the Legislature that accounting officers must ensure that human resource and performance management policies are applied consistently and decisively.
“Persistent non-compliance by officials should trigger direct accountability measures, including recovery of losses suffered by the State,” she said.
Maluleke added that the Standing Committee on Public Accounts (SCOPA) and relevant Portfolio Committees should demand regular reporting on consequence management outcomes to reinforce deterrence and credibility.
“The audit committees and internal audit units must strongly monitor emerging risks and implementation of their recommendations. Departments with the greatest impact on service delivery such as Education, Health, Transport, and Human Settlements should be placed under enhanced and regular monitoring,” she said.
Maluleke advised that Cabinet and Portfolio Committees must review performance improvement plans and progress against agreed milestones quarterly, intervening early where regression is evident to prevent further setbacks in service delivery.
She said that the quality of monthly and in-year financial reporting must be significantly improved and linked to real-time oversight of cash flow and supplier payment compliance.
“Provincial Treasury should implement targeted controls, such as ringfencing funds for critical infrastructure projects, ensuring procurement is supported by available cash, and processing invoices promptly to prevent arrears or accruals,” she said.