Gauteng MEC for economic development Lebogang Maile says persistent failures in consequence management and compliance continue to undermine progress despite the province getting 22 clean audits in the 2024/25 financial year.
This comes just days after a joint parliamentary oversight visit to Gauteng raised concerns that provinces are failing to implement auditor-general recommendations and strengthen internal controls.
Maile said eight departments in the province had achieved clean audits. Four of these have sustained this performance for five consecutive years.
He said 14 out of 19 provincial entities, among them the Gautrain, Gauteng Film Commission, Liquor Board and Gauteng Growth and Development Agency, had also received clean audits.
Across the departments that received unqualified audits, non-compliance with expenditure management and supply chain management laws and regulations was common, which led to increased instances of irregular expenditure
— Gauteng MEC for economic development Lebogang Maile
“This shows significant progress in improving financial management and ensuring that public funds are used for what they are meant for: to deliver services to the people of Gauteng,” said Maile.
However, he warned that irregular expenditure remains a pressing challenge, with the province incurring R4.2bn in the year under review.
“Across the departments that received unqualified audits, noncompliance with expenditure management and supply chain management laws and regulations was common, which led to increased instances of irregular expenditure.”
The department of health was identified as the worst performer, with noncompliance across all areas and only 37% of supplier invoices paid within 30 days.
Education lost its clean audit, while the department of sport, arts, culture & recreation regressed to a qualified opinion.
“Consequence management remained an issue for 50% of departments, meaning accounting officers did not implement recommendations from completed investigations,” Maile said.
He said weak internal controls point to a lack of management.
“Material misstatements in the annual financial statements were an issue for 50% of these departments, which indicates weak internal controls and a lack of adequate management reviews in the financial reporting processes.”
Provincial treasury is now automating procurement processes to strengthen compliance, prevent corruption and ensure greater transparency, he said.
“We are committed to protecting the public purse and ensuring that finances translate into better services for our people.
“Improvement in financial management leads to better service delivery. Our people expect an accountable and clean government, and that is what we are building.”
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