SCOPA EXPRESSES DISSAPOINTMENT OVER WORSENING AUDIT OUTCOMES IN KZN
MEDIA STATEMENT
02 October 2025
SCOPA EXPRESSES DISSAPOINTMENT OVER WORSENING AUDIT OUTCOMES IN KZN
The Standing Committee on Public Accounts (SCOPA) in KwaZulu-Natal (KZN) is alarmed by the Auditor-General of South Africa’s (AGSA) 2024/25 audit which reveals worsening governance, financial mismanagement and service delivery failures across several provincial government departments.
In terms of Audit Regression, only six departments received clean audits – down from nine the previous year. Meanwhile, three audits – Ithala Development Finance Corporation, Ithala SOC Ltd and Ezemvelo KZN Wildlife (EKZN) – remain outstanding.
In terms of Unauthorised, Fruitless and Wasteful Expenditure, the AGSA report reflected the following;
- Education incurred R521 million in unauthorised expenditure
- Health disclosed R2.34 billion in irregular expenditure, with a further R2.3 billion under assessment and;
- Human Settlements recorded R492 million in irregular expenditure.
Furthermore, 18 Material Irregularities (MIs) were identified, with R280 million in financial losses, with 94% of these only acted upon after AGSA intervention. Notably, KZN’s Department of Education (DoE) failed to resolve a R1.2 billion irregular National Schools Nutrition Programme (NSNP) contract that left learners unfed.
In the key area of Procurement Failures, 75% of departments had material procurement findings. Awards were made to suppliers linked to employees and family members, including R64.9 million in related-party contracts. KZN’s departments of Education, Health and Transport were among the worst affected.
Infrastructure Failures fared no better with all 16 audited projects delayed – some by over a decade. A total of R827million in cost overruns and R199 million in fruitless expenditure were recorded. Examples of this dire situation include;
- Dingukwazi School near Pongola, with a 46-month delay on completion with poor workmanship to boot
- Thukela district, where only 15 of 300 houses in the Fitty Park Housing Project have been completed and;
- The Klein Boesman River Bridge in Wembezi, which is four years behind schedule, leaving residents to navigate the bridge with unsafe temporary access.
The AGSA briefing also revealed a serious IT governance collapse with Education having 152 659 learner records without ID numbers and 4 617 deceased learners still on the system. Health, Transport and Public Works and Infrastructure also showed poor IT project execution, outdated systems and cybersecurity risks.
In terms of non–financial performance, service delivery failures were strikingly evident. Despite full budget spend, four departments underperformed as follows:
- Education with 71% of textbooks delivered on time despite a 100% target
- Health with a 57% achievement on district health targets
- Transport with only 50% of infrastructure targets met and;
- Human Settlements with only 30% of housing targets achieved.
Grave concern has been expressed in terms of the state’s liability to handle claims against it by departments such as Transport, Health and Education, amounting to R15billion. In fact, 62% of departments failed to pay creditors within 30 days, resulting in R9billion in accruals.
In light of these findings, KZN SCOPA will be summoning the following departments to appear during the October 2025 hearings:
- Department of Education
- Department of Health
- Department of Transport
- Department of Human Settlements
- Department of Public Works
- Department of Cooperative Governance and Traditional Affairs (COGTA)
- Department of Agriculture and Rural Development and;
- Department of Social Development
Hearings will focus on audit regressions, unresolved material irregularities, infrastructure failures, and the lack of consequence management.
SCOPA will not allow a culture of impunity to persist and will demand accountability, enforce compliance and ensure that public funds are used to deliver quality services to the people of KZN.
ISSUED BY THE CHAIRPERSON OF SCOPA, HONOURABLE TIMOTHY BRAUTESETH
Honourable Brauteseth can be reached on 0837664657
