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KZN Education Department off the hook as AGSA clears R2.62bn in disputed contracts

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By Levy Masiteng

The Auditor-General of South Africa (AGSA) has cleared the KwaZulu-Natal Department of Education of R2.62 billion in irregular expenditure, following a thorough investigation and assessment of two contracts.

The finding arises from the 2022/2023 financial year and, according to the AG, is based on non-compliance with the principles outlined in Section 217 of the Constitution and Section 38 of the Public Finance Management Act (PFMA). As of 31 March 2025, the expenditure on these two contracts stood at R2.62 billion.

In a statement released this week, the AGSA said the department had initially disclosed the amount as irregular expenditure under assessment in the annual report, in line with the National Treasury Instruction no. 4 of 2022/2023, to allow for further assessment and investigation.

However, during the 2024-25 financial year audit, the department disputed the finding and consulted with the provincial treasury and the AGSA.

The AGSA said

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