Cape Town – The South African Cabinet has recognized the significant improvements in the audit outcomes of the 2022/23 financial year for national and provincial governments, indicating a move away from claims of total State capacity collapse.
During a Post-Cabinet media briefing on Monday, Minister in The Presidency, Khumbudzo Ntshavheni, shared insights provided by the Auditor-General of South Africa (AGSA).
According to South African Government News Agency, there has been a noticeable trend of continuous improvement in performance, signifying advancements in accountability, transparency, adequacy, and effectiveness of controls.
The report reveals that the number of departments and institutions achieving unqualified audits with no findings (clean audits) has risen from 94 in the 2018/2019 period to 147 in 2022/2023. This improvement is a clear indication of year-on-year progress. Additionally, unqualified audits with findings were reported by 162 departments and institutions, accounting for 39% of the audited entities.
A significant reduction was also noted in the departments and institutions receiving disclaimed findings, decreasing from 25 in the 2018/2019 period to just five in the 2022/2023 period, which is only 1% of audited institutions.
Although the Auditor-General reported an estimated R14 billion in financial losses, there has been progress in addressing material irregularities. While challenges persist, these audit outcomes refute claims of a complete collapse in State capacity. The AGSA’s independent and objective assessment indicates a strong and ongoing trajectory of improvement.
In addition to these findings, the Cabinet also highlighted the collaborative efforts of three metropolitan municipalities in Gauteng (Ekurhuleni, Johannesburg, and Tshwane) and Rand Water. They have been holding daily meetings to address the root causes of water challenges in the province. A key issue identified is water losses due to aged municipal infrastructure and inefficiencies in monitoring water leakage and repairs.
The resolution of disputes that delayed the implementation of the Mzimvubu Dam was also commended. Site establishment began in early November, with consultations ongoing with traditional leaders on social issues. Furthermore, the Cabinet was updated on the progress of the Clanwilliam Dam wall raising, which will increase storage capacity to benefit several municipalities. The Tzaneen Dam construction, which recommenced in June 2023, is expected to be completed by April 2025.
These developments reflect the South African government’s commitment to improving infrastructure and addressing critical challenges in resource management.