By Johnathan Paoli
Auditor-General Tsakani Maluleke has identified significant risks to service delivery that threaten the government’s ability to achieve its National Development Plan 2030 and the Medium-Term Strategic Framework, urging the new administration to continue using her office’s work for critical insight.
Speaking on the findings of her office’s audits before Parliament’s Standing Committee of Public Accounts, Maluleke emphasised the need to address persistent inefficiencies in infrastructure, technology, procurement and financial management to enhance service delivery outcomes.
“I urge all role-players in the accountability ecosystem, particularly those with direct control over service delivery, to work deliberately and with urgency towards a heightened level of accountability, transparency, integrity and improved service delivery for all South Africans,” she said.
The AG said that while infrastructure remained a cornerstone for basic services, audit findings revealed significant deficiencies, with 86% of the 143 projects inspected in 2023/24 experiencing delays, poor quality or inflated costs.
She said the instances of idle new infrastructure and deteriorating existing facilities underscored the urgent need for proper maintenance and oversight.
Maluleke urged robust project management to address inefficiencies that hindered infrastructure delivery.
“Existing infrastructure must be maintained to ensure functionality and safety,” she said.
Maluleke said delays, cost overruns and poor utilisation of new technologies plagued these efforts. She also highlighted cybersecurity vulnerabilities, with 70% of the 77 auditees assessed in 2023/24 displaying weak controls, exposing them to cyberattacks.
She said recent incidents underscored the need for heightened vigilance and improved cybersecurity frameworks in modernising and integrating government systems to be crucial for efficient service delivery.
The AG said that procurement remained a weak link in government operations, after findings revealed that 63% of auditees failed to comply with procurement legislation, with material issues present in 23% of cases.
Poor contract management, non-compliance and suspected fraud have led to financial losses and project failures, and that the material irregularity (MI) process uncovered numerous cases of financial harm stemming from such mismanagement.
Maluleke praised the MI process, saying since its introduction in 2019, it has been pivotal in addressing irregularities.
Actions taken by accounting officers and authorities have recovered or prevented financial losses totalling R3.39 billion, and of the 292 MIs identified since 2019, 48% have been resolved, resulting in strengthened internal controls, reduced resource wastage and improved accountability.
She said departments and public entities could direct the recovered funds towards service delivery, enabling the government to achieve its strategic priorities.
The AG reported inadequate responses to allegations of misconduct, fraud and irregular expenditure.
She said the lack of consequences for poor financial and supply chain management has perpetuated inefficiencies and stressed the importance of holding officials accountable.
“Consequences help recover losses and deter future disregard for legislation,” she said.
Maluleke commended the progress made, but emphasised the need for preventative measures.
“We continue to advocate for investment in good preventative controls, as preventing MIs is more effective than having to deal with the consequences thereof,” Maluleke said.
The AG concluded by calling on all role-players in the accountability ecosystem to fulfil their designated roles and play their part effectively and without fear or favour, to promote a culture of performance, accountability, transparency and institutional integrity.
This would ultimately improve service delivery and create tangible prospects for a better life.
This report follows the AG’s recent local government audit outcomes report, which highlighted significant shortcomings across municipalities, indicating financial loss each year due to poor decisions, neglect or inefficiencies.
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