STATEMENT ON THE AG’S 2024/25 NATIONAL AND PROVINCIAL AUDIT OUTCOMES

FOR IMMEDIATE RELEASE

Johannesburg, South Africa. Friday, 27 March 2026 — Public Interest SA notes the release of the Auditor-General’s report on national and provincial government for the 2024/25 financial year and expresses deep concern at the continued stagnation in audit outcomes and the systemic governance failures it reveals.

The finding that only 151 out of 417 auditees achieved clean audits — representing just 36% — while the majority of public expenditure remains under institutions with weaker audit outcomes, highlights a persistent and structural misalignment between public resources and institutional performance.

More troubling is that this report comes one year into the 7th administration, yet reflects no meaningful improvement in financial management, service delivery, accountability, or institutional integrity. This signals not a deficit of insight, but a failure of implementation and leadership.

Public Interest SA concurs with the Auditor-General’s identification of weak governance, inadequate institutional capability, and poor oversight as root causes. However, these must be understood within the broader context of a systemic failure to enforce accountability and consequence management.

The persistence of material non-compliance, irregular expenditure exceeding R42 billion, and the failure to investigate a significant proportion of reported fraud allegations reflect an environment in which wrongdoing is insufficiently deterred and consequences are inconsistently applied.

This erosion of accountability undermines the rule of law and directly compromises the state’s ability to fulfil its constitutional obligations.

The report reaffirms that procurement and contract management failures remain central to financial mismanagement. The continued reliance on uncompetitive procurement practices and contract extensions exposes public funds to inefficiency and abuse.

Public Interest SA emphasises that procurement reform must be elevated as an urgent national priority, with a focus on transparency, fairness, and real-time oversight.

The findings on infrastructure delivery — particularly incomplete projects, poor construction quality, and the absence of basic services — demonstrate the tangible consequences of governance failures.

These shortcomings directly affect communities, deepen inequality, and erode public confidence in the state.

The financial instability of state-owned enterprises, and their continued reliance on government guarantees, presents a significant risk to fiscal sustainability. Without decisive reforms, these pressures will continue to divert resources from essential public services.

Public Interest SA calls on the Executive, Parliament, and oversight bodies to take urgent and decisive action:

1. Enforce consequence management to ensure accountability for financial misconduct and non-compliance.

2. Strengthen institutional capability through professionalisation and merit-based appointments.

3. Reform procurement systems to enhance transparency and prevent abuse.

4. Improve oversight and coordination across all spheres of government.

5. Protect whistleblowers as a critical safeguard against corruption and maladministration.

The Auditor-General’s report is a clear indication that incremental progress is insufficient. A decisive shift towards accountability, ethical leadership, and performance is required.

Public Interest SA remains committed to advancing transparency, strengthening governance, and ensuring that public resources are managed in the best interests of all South Africans.

END

Issued by: Public Interest SA