South Africa: Government Lost R12 Billion to Non-Compliance and Fraud, Latest Auditor-General Report Reveals

analysis

While there has been a slight increase in clean audits from the Auditor-General, the government lost R12bn related to non-compliance and fraud, and service delivery departments and state-owned enterprises falling short.

'It's urgent that everybody in the accountability ecosystem acts differently, sees things differently, sees them for what they are, and acts in a way that protects resources and guides public institutions towards a culture of better performance, of better integrity and enhanced transparency and accountability," said Auditor-General Tsakani Maluleke as she released the 2021-22 general report and material irregularity report for national and provincial departments and their entities during a media briefing on Wednesday.

AG Tsakani Maluleke briefs members of the media on the 2021-22 PFMA audit outcomes #AGReport

Read the full report here

-- Auditor-General SA (@AuditorGen_SA) November 23, 2022

The Auditor-General estimated the financial loss from material irregularities at R12-billion.

Most of the material irregularities "were caused by non-compliance and suspected fraud which resulted in, or are likely to result in, material financial loss," according to the report.

Money was mostly lost in procurement processes that are "unfair, uncompetitive and uneconomical" and in payments for goods and services that weren't received.

The report also found there...

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