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AG confirms serious financial management issues in FS, NW

───   KATLEHO MORAPELA 20:30 Wed, 21 Nov 2018

AG confirms serious financial management issues in FS, NW | News Article
Auditor-General, Kimi Makwetu

The latest audit outcomes by the Auditor-General confirm that the Free State and the North West have serious financial management issues. This as they are the only two provinces with disclaimers and adverse opinions.


The report, released by Auditor-General, Kimi Makwetu, earlier today revealed that the two provinces are in a very bad state and continue to worsen.

The two provinces have both recently made headlines over alleged corrupt activities and maladministration. 

The North West was in May placed under administration by President Cyril Ramaphosa, following service delivery protests and calls for former premier, Supra Mahumapelo, to step down.

The Free State has, on the other hand, made national headlines over the controversial Vrede Dairy Project, through which R250 million that was earmarked to assist 80 farmers, was siphoned out of the province. According to the #GuptaLeaked emails, a substantial amount meant for this project was used to fund the Gupta family’s infamous Sun City wedding in 2013.

The most recent scandal to hit the province is regarding the R79.3 million that has been spent by the Office of the Premier under the now ANC Secretary-General and former Free State premier, Ace Magashule. 

The on-going state capture commission of inquiry, led by Deputy Chief Justice Ray Zondo, has revealed that the Free State has splashed this exorbitant amount on the Gupta-owned newspaper, The New Age, and that out of the eight provinces that spent a total of R113 million on this newspaper, the Free State coughed up the most.

The AG report which mainly focuses on the 2017/18 audit outcome on national and provincial government has highlighted that “the two province’s financial health was the worst of all the provinces, no auditees except one in North West could comply with legislation, and the inability to reliably report on the performance of auditees and key provincial projects was common. Delays in the completion of projects, poor quality work, and payments without evidence of delivery (especially in the Free State) resulted in poor service delivery and allegations of fraud”.


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