While the office of Eastern Cape premier Oscar Mabuyane has regressed in its latest audit outcomes, moving from a clean audit in the 2022/2023 assessment to an unqualified one with findings, the provincial government has vowed to pay particular attention to the departments of health and education.
This is after the two struggling departments again both failed to improve on their outcomes, receiving qualified audit opinions for the umpteenth time.
In welcoming the “mixed bag” of audit results for provincial departments and state entities this week, provincial government spokesperson Khuselwa Rantjie said Mabuyane’s office, with the Mlungisi Mvoko-led provincial treasury, would provide support to the two key departments, which annually swallow up the lion’s share of the provincial budget.
Also regressing from their clean audits in the 2022/2023 assessment were the Bhisho legislature and the department of sports, recreation, arts and culture (Dsrac), which both achieved unqualified audit opinions with findings in 2023/2024.
Five provincial departments achieved clean audits in the 2023/2024 assessment, with seven receiving unqualified audits with findings.
Eight state entities received a clean financial bill of health, and two obtained unqualified audits with findings, while the Eastern Cape Rural Development Agency (ECRDA) obtained the worst outcome compared with other entities from auditor-general Tsakane Maluleke.
The five departments which managed to obtain clean audits are community safety, finance, Cogta, economic development, environmental affairs and tourism and rural development and agrarian reform.
The seven departments which obtained unqualified audit with opinion included public works and infrastructure, social development, Dsrac, arts and culture, human settlements and Mabuyane’s office.
Rantjie said the provincial government welcomed the “mixed bag” of outcomes with “notable improvements as well as regression in some departments”.
Rantjie said the province remained concerned about the lagging departments, health and education, “in the steady progress of provincial audit outcomes”.
“These outcomes demonstrate continued efforts of the provincial government in striving for clean and good governance,” she said, adding that every necessary measure would be taken to improve audit outcomes.
The eight state entities which received clean audits in the 2023/2024 assessment were the EC Gambling Board, Coega, EC Parks and Tourism Agency, EC Socio Economic Consultative Council, EC Liquor Board, Government Fleet Management Services, EC Provincial Arts and Culture and the East London Industrial Development Zone.
Only the Eastern Cape Development Corporation and Mayibuye Transport Corporation received unqualified audits with opinion, while ECRDA obtained a qualified opinion.
In her overview of the province’s performance, and reflecting on the three departments which regressed, Maluleke said overall audit outcomes in the province had stagnated from last year, with three auditees regressing and three improving.
“We raised findings on two performance indicators at the premier’s office, as it did not have adequate processes for gathering and confirming the performance information it required from other auditees.
“We raised compliance findings at both the provincial legislature and at Dsrac.
“The legislature did not pay its suppliers within the legislated 30 days as it implemented a policy that was not aligned to legislative requirements, while Dsrac awarded contracts through improperly constituted bid adjudication committees because it did not properly monitor policy adherence,” Maluleke said.
The auditor-general said the transport department had improved from a qualified to an unqualified audit opinion with findings, “by taking adequate actions to correctly report on fruitless and wasteful expenditure”.
“However, the department continues to incur such expenditure, indicating that the root causes remain unaddressed.”
“Though the ECRDA improved from a disclaimed to a qualified opinion, it submitted financial statements containing numerous misstatements, indicating significant deficiencies in record keeping and the preparation of financial statements.”
Reflecting on education and health department outcomes, Maluleke said: “Instability in key positions and poor management of medical claim records at the provincial health department hindered the implementation of audit recommendations on contingent liabilities, resulting in a repeat qualified opinion.
“The provincial education department was again qualified on immovable assets due to leadership instability, delayed action, and failure to address prior-year findings in time.”
Maluleke said the health department had reported achievements for patient safety, HIV testing and infant immunisation, “which lacked evidence or were not reliable”, while the education department’s reported achievements “lacked evidence for multiple indicators, including teachers trained in mathematics, access to early childhood development, and school infrastructure”.
She further said the education, health and transport departments accounted for all of the R4.89bn in unauthorised expenditure incurred over the administrative term, with the health and transport departments incurring R467.73m in 2023/2024 alone.
Mabuyane said on Thursday: “We had hoped to close the term on a high note, so we are not happy with the regression.”
He added that “everyone is committed to work tirelessly to rectify the shortcomings”.
DA MPL Dr Vicky Knoetze on Thursday said the AG’s report “paints a bleak picture as it exposes systematic issues of mismanagement within critical departments of the province”.
"The fact that multiple key departments, education, transport, health, and human settlements, are also reported for providing false and unverified achievements, indicates a widespread failure to meet basic governance standards.
"Such deception not only erodes public trust, but also reveals a deeper culture of corruption and inefficiency within the provincial government, directly affecting the well-being of citizens," Knoetze said.
EFF MPL and provincial secretary Simthembile Madikizela on Thursday said his party welcomed the “slight improvements, but with reservations”.
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