When auditor-general Tsakani Maluleke briefs parliament, South Africans usually wince as she describes how various spheres of government have performed or, more often, not performed.
We have grown accustomed to hearing the train wreck that is the financial situation of our national, provincial and most especially local government. Fruitless and wasteful expenditure; irregular expenditure; qualified audits and noncompliance are key phrases Maluleke has repeated so often that her presentations have started to sound a bit like a stuck record.
The AG is the person who warns South Africa with sobering clarity (the numbers don't lie) of the impending catastrophe that lies in wait around the corner. She is the one we choose to ignore in the futile hope that the inevitable will never happen.
But this week there was a smidgen of good news when Maluleke detailed Public Finance Management Act (PFMA) outcomes for government departments and state entities for the 2023-24 financial year.
Any improvement in the financial accountability of government departments should be acknowledged and applauded. It is a move in the right direction and gives us a glimmer of hope for the future.
In her presentation to parliament’s standing committee on public accounts, Maluleke outlined a big jump in clean audits for national and provincial government departments, praising them for showing signs of improved financial and performance management.
She said the number of government departments with accurate, complete and transparent financial records jumped by more than 50% from the 93 recorded in 2018/19 to 142 in 2023/24.
Maluleke said the improved audit outcomes showed national and provincial governments were working towards improved transparency and accountability through credible financial statements and performance reports.
Even though it's coming off a low base, this is still reason to celebrate. Any improvement in the financial accountability of government departments should be acknowledged and applauded. It is a move in the right direction and gives us a glimmer of hope for the future.
But of course it was not all good news. These advances come amid ongoing concerns about compliance and discipline, and Maluleke said while there had been improvement, financial statements and performance reports received by her office were still “materially flawed”.
This was indicative of a culture where “leadership places little emphasis on the importance of compliance and there is a lack of management discipline”.
How well the AG sums up the overarching theme of government, where consequence is a dirty word and government officials get their salaries, bonuses and government perks even if half their budget was spent on a dud contract, or had to be returned to the Treasury because it wasn't spent, or was wasted on buying thousands of golf shirts at hugely inflated prices. This “culture of noncompliance” has cost South Africa more than R14.3bn in payment of goods that were not received and the ineffective use of resources.
Maluleke also spoke of a disregard for the “rule of law” which she said had resulted in more than R38.8bn of overspending by government departments and public entities. So there is still much work to be done.
We hope to see further improvement, at an accelerated pace, this time next year. Until then, South Africans must continue to demand to know how, when, where and why every cent of taxpayers' money is spent. And when it is spent irregularly, irresponsibly or criminally, we must demand the people involved face the consequences.
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