Only 151 of 417 institutions secure clean audits in first year of 7th administration
South Africa's Auditor-General Tsakani Maluleke has issued a stark warning to government leaders, urging them to redouble their commitment to accountability and effective service delivery after audit results for the 2024-25 financial year showed only marginal improvement across the public sector.
Presenting the General Report for national and provincial departments, public entities and legislatures in Pretoria on Thursday, Maluleke revealed that just 151 out of 417 audited institutions managed to achieve clean audits. The remaining 266 entities — responsible for administering a staggering 88% of the total government expenditure budget — fell short of the standard required.
Of particular concern is the continued poor performance among high-impact auditees tasked with overseeing critical sectors including health, education, infrastructure and energy. These institutions, which consume the lion's share of public funds, remain unable to produce reliable financial statements or meet basic legislative compliance requirements.
"Many of the shortcomings identified are not due to a lack of legislation or funding, but rather inconsistent implementation and weak accountability."
The Auditor-General noted that 45 institutions saw their audit outcomes deteriorate compared to the previous cycle, with several high-impact entities managing budgets running into hundreds of billions of rand among those that regressed. This backsliding underscores the fragile nature of gains made in public financial management.
Material Irregularity process delivers tangible results
Despite the sobering overall picture, Maluleke pointed to encouraging developments flowing from the Material Irregularity process, which has become an increasingly powerful instrument for driving corrective action. Through this mechanism, financial losses totalling R2.41 billion have either been prevented or recovered for the state.
Beyond the monetary recoveries, the process has prompted practical improvements in how public resources are utilised. In several instances, health facilities that had been sitting idle were brought back into operation, while disused buses were repurposed as mobile libraries serving communities in need. The report also flagged a welcome decline in irregular and wasteful expenditure compared to the prior year, suggesting that tighter internal controls and heightened awareness are beginning to bear fruit.
"The successes achieved through the Material Irregularity process demonstrate how decisive action, ethical leadership and effective oversight can lead to real improvements in service delivery and financial management."
Maluleke stressed that unlocking further progress hinges on bolstering institutional capability, strengthening governance structures and ensuring robust oversight at every level of government. She maintained that addressing root causes — particularly the inconsistent application of existing rules and the absence of meaningful consequences for poor performance — would empower state institutions to fulfil their mandates and deliver better outcomes for ordinary South Africans.
While persistent challenges around legislative non-compliance, procurement irregularities and delayed infrastructure projects continue to hamper the public sector, the Auditor-General maintained that workable solutions exist. She called on government leaders to build on the momentum generated by recent successes and to cultivate an enduring culture of performance, transparency and accountability across all spheres of the state.
South Africans depend on government institutions for essential services like healthcare, education and infrastructure, yet the vast majority of entities controlling 88 percent of public spending cannot meet basic financial standards. This directly affects service delivery in communities already under pressure. The recovery of R2.41 billion through the Material Irregularity process offers a credible path forward, but sustained progress will require consistent enforcement of accountability measures and meaningful consequences for underperformance across all levels of government.
