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 its technical audit support unit conducted a further assessment, which found that the contracts were not irregular. “The technical assessment has subsequently found that the contracts are not irregular,” the AG said, “the department’s own assessment, in consultation with provincial treasury, has also concluded that the contracts are not irregular.”
KZN’s MEC of Education, Sipho Hlomuka, welcomed the revised findings and said the outcome reflects the department’s commitment to providing accurate information, strengthening internal controls, and ensuring full compliance with applicable legislation and financial management standards.
“We value the role of the Auditor-General as an independent oversight institution that strengthens transparency, accountability and good governance. This development isa testament to the commitment by the MEC to ensure the development of a post audit action plan to implement the recommendations highlighted in the AG’s report,” Hlomuka added.
According to the department, the AGSA’s findings are a significant victory for them, as they had been facing potential financial implications and reputational damage due to the irregular expenditure allegations.
The department added that the clearance comes as a relief, allowing it to focus on its core mandate of delivering quality education to learners in KZN.
“We will continue to manage public resources responsibly to ensure that every rand spent contributes to the improvement of teaching and learning in our schools,” said Hlomuka.
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