Maluleke in her briefing beginning at 2pm, will also provide a breakdown of the audit outcomes of government entities. In April 2021, Kimi Makwetu’s successor reported that 111 or 26% of national and provincial governments in the country as well as their entities produced quality financial statements and received clean audits. Amongst the best performers in that regard were the departments of science and technology, trade and industry as well as public service and administration. OFM News’ Olebogeng Motse reports that Maluleke chastised one central South African province.

The AG was particularly critical of the Free State Provincial Government in that report, saying there is “a culture of no consequences that has been created through the political and administrative leadership’s inability to implement consequence management for the pervasive non-compliance with legislation”. She cautions that this makes the province's departments and entities vulnerable to abuse of state funds and misappropriation.

The AG’s briefing comes on the back of the Medium Term Budget Policy Statement by Finance Minister, Enoch Godongwana, in November, in which he proposed that restraint needs to be maintained with respect to public expenditure, as well as the tabling of several provinces’ 2021/22 adjustment budgets. “Government will not commit to new long-term spending in response to temporary revenue windfalls. No additional funding is provided to state-owned companies over the medium term,” said Godongwana in his mini-budget.

Free State Finance MEC, Gadija Brown, tabled her Adjustment Budget nearly two weeks ago in which she expressed concern that 63% of the province’s 2021/22 budget goes towards salaries alone. Brown said the salary bill is posing fiscal risks for the province and criticised the recent Public Service wage agreement which she says breached the budget ceiling for compensation of public servants and further aggravates the fiscus’ position. Brown further added that the provincial government needs to cap the wage salary bill in the province at 60% moving forward.

OFM News