Further, the Auditor-General has issued a qualified audit report. This was due to insufficient appropriate audit evidence to support R2.9 billion in payments made to Community Work Programme implementing agents, R372.4 million in payments to consultants, and verification of R346.6 million in capital assets.

The systems to maintain records of prepayments were also inadequate, resulting in prepayments being overstated by R159.4 million

Fruitless and wasteful expenditure amounted to R7.5 million. Several payments from previous years are also still under investigation.

According to Cogta Deputy Minister Parks Tau the department faces governance, financial management and administration challenges; non-viable municipalities; and systemic issues around powers and functions.

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