ActionSA has expressed deep concern over the recent findings from the Auditor-General’s Public Finance Management Act (PFMA) report for the 2023/24 financial year, which reveal staggering levels of financial mismanagement in government departments. The report, presented by Auditor-General Tsakani Maluleke, highlighted a shocking total of R35.2 billion in unauthorised expenditures since 2019, alongside R13.9 billion in irregular, fruitless, and wasteful expenditures. Alarmingly, government entities have mismanaged nearly R10 billion annually over the last five years.
In a statement, ActionSA's national spokesperson, Alan Beesley attributed these findings to the ANC-led government’s ongoing failure to deliver essential services and safeguard taxpayer money.
“The report confirms what South Africans have experienced daily under ANC-led rule: a government that fails to deliver basic services and protect taxpayer funds,” said Beesley.
He pointed out that 60% of those audited exhibited material non-compliance with legislation, echoing a culture of impunity that has flourished under the ANC’s leadership.
As the evidence mounts, Beesley elaborated on the broader implications: “This culture of impunity has resulted in an astounding R406.83 billion in irregular expenditure and R10.34 billion in fruitless and wasteful expenditure over the past five years.”
The report also indicated that audits for 38 departments and entities were still outstanding as of September, with the Unemployment Insurance Fund (UIF) cited as the least compliant, missing deadlines for five consecutive years.
“If you think about the significance of the amount of money that flows through the fund and the significance of the role they play in our socio-economic framework, it is crucial that oversight be seized with this matter,” Maluleke remarked. The consequences of this mismanagement are dire, as high-impact auditees responsible for vital services such as healthcare, education, and water accounted for 54% of modified audit opinions—highlighting significant issues with financial reporting—and 76% of outstanding audits. Disturbingly, 86% of infrastructure projects examined displayed significant deficiencies, leaving communities bereft of essential services amidst crumbling infrastructure.
ActionSA maintains that the Auditor-General’s findings underscore the perilous ramifications of poor financial management processes, alongside severe weaknesses in contract oversight.
With overspending of R38.83 billion and R105.57 billion in claims against government departments further draining the meagre resources available for critical service delivery, the situation has reached a tipping point.
In conclusion, ActionSA holds the ANC-led government directly accountable for an environment of financial chaos that severely impacts the everyday lives of South Africans.
“The delivery of water, housing, and education is undermined by systemic corruption, inefficiencies, and incompetence, with no noticeable improvements in sight since coalition parties joined forces with the ANC,” argued Beesley, highlighting the urgent need for change.
Saturday Star