AG’s PFMA report lays bare the harm inflicted by the ANC government

26 November 2024

ActionSA is deeply alarmed by the findings of the Auditor-General’s Public Finance Management Act (PFMA) report for the 2023/24 financial year. 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.

The report highlights a no-consequences culture in national and provincial government that has persisted under the ANC’s leadership, with 60% of auditees materially non-compliant with legislation. Over the last five years, this culture of impunity has resulted in a staggering R406.83 billion in irregular expenditure and R10.34 billion in fruitless and wasteful expenditure.

Even more troubling is the entrenched lack of accountability. High-impact auditees, responsible for delivering critical services such as healthcare, education, and water, accounted for 54% of modified audit opinions (significant issues with the financial statements) and 76% of outstanding audits. Their inability to manage infrastructure projects—86% of those inspected had significant deficiencies—has left communities without essential services, and infrastructure in a state of disrepair.

The Auditor-General’s findings also emphasise the damaging effects of poor financial and performance management, weaknesses in contract oversight, and the no-consequence culture. A total of R38.83 billion in overspending and R105.57 billion in claims against departments have further eroded the limited funds meant for service delivery.

ActionSA holds the ANC-led government responsible for this financial chaos, which directly impacts the lives of ordinary South Africans. The delivery of water, housing, and education is undermined by systemic corruption, inefficiencies, and incompetence, of which we have not seen any material improvements since the other parties joined the ANC in government.

As South Africans, we must demand more from our leaders. ActionSA calls for immediate action to:

Institutionalise accountability mechanisms to address non-compliance and fraud in all spheres of government.

Professionalise public service to ensure capable management of resources and delivery of services.

Prioritise consequences for officials who fail to uphold their responsibilities.

The AG’s report makes clear that South Africa cannot afford to remain on this trajectory. ActionSA believes that urgent reforms are essential to restore trust in governance, enhance service delivery, and improve the lives of all South Africans.

Issued by Alan Beesley, ActionSA, 27 November 2024