ANC violates PFMA by failing to table annual reports in Parliament

6 October 2023

The Democratic Alliance (DA) strongly condemns the repeated failure of government departments and entities to meet their deadlines for submitting Annual Reports, which reflects a worrying lack of accountability and adherence to legal requirements as outlined in the Public Finance Management Act (PFMA).

The Annual Reports are an essential aspect of government transparency and accountability, providing critical insights into the financial health, performance, and governance of departments and entities. These reports are not only a legal obligation but also a fundamental tool for evaluating the effectiveness of government programs and spending.

Numerous government departments and entities have consistently missed their Annual Report submission deadlines, reflecting the ANC government’s contempt for parliament, creating a concerning pattern of disregard for legal requirements and a lack of transparency.

This failure directly impacts the ability of Parliament and the public to assess government performance and hold officials accountable for their actions.

SAA last finalised its annual financial statements five years ago in 2018. Public Enterprises Minister Gordhan said he had been advised that the accounts may only be finalised after the audits for the previous five years had been completed.

Denel, which last published its accounts three years ago, is planning to complete audits for the past three years in November.

Alexkor, also financially distressed, is a year behind in its reporting.

The NSFAS, which has recently completed its 2021/22 audit, hopes to submit its 2022/23 statements by the end of March 2024.

The financial statements of both the UIF and the Compensation Fund are more than a year behind. Neither has finalised the 2021/22 annual accounts.

The PFMA clearly outlines the obligations and deadlines for government entities to submit their Annual Reports, and these deadlines are not mere formalities but crucial mechanisms for ensuring responsible and accountable governance.

The continued disregard for these deadlines undermines the principles of good governance and weakens public trust in government institutions.

The DA will lay charges in terms of the PFMA against the accounting officers for failing to table the reports in time.

The DA will also request that the Auditor-General issue a special report on all those entities that have failed to submit their annual reports.

The DA remains committed to upholding the principles of transparency, accountability, and responsible governance.

We will continue to monitor the government's compliance with the PFMA and advocate for the highest standards of accountability in our public institutions.

Issued by Annelie Lotriet, DA Deputy Chief Whip, 6 October 2023