The Eastern Cape Provincial Government is celebrating a significant improvement in its audit outcomes for the 2022/23 fiscal year, as reported by the Auditor General of South Africa. The latest audit results indicate remarkable progress in financial management and transparency compared to previous years.
According to the Auditor General’s report, the Eastern Cape Province has made substantial strides in the quality of its financial statements. A total of 20 audited public institutions achieved unqualified audit opinions. Among these, 15 received clean audit opinions, signifying no findings of financial mismanagement, while five others received unqualified audit opinions with minor findings.
Notably, the Office of the Premier has elevated its status from “unqualified with findings” to “clean,” joining other successful departments and institutions such as Provincial Treasury, Cooperative Governance and Traditional Affairs, Economic Development, Environmental Affairs and Tourism, Department of Rural Development and Agrarian Reform, Provincial Legislature, Community Safety, as well as Sports, Recreation, Arts, and Culture.
Certain departments, including Human Settlements, Social Development, Public Works, and Infrastructure, have maintained their unqualified audit opinions from the previous year.
Among the public entities, the East London Industrial Development Zone (ELIDZ), Coega Development Corporation, Eastern Cape Parks and Tourism Agency, Eastern Cape Government Fleet Management Services, Eastern Cape Socio-Economic Consultative Council (ECSECC), Eastern Cape Liquor Board, and Eastern Cape Gambling Board have all achieved clean audit opinions.
Meanwhile, Eastern Cape Development Corporation and the Eastern Cape Provincial Arts and Culture Council received unqualified audit opinions with minor findings.
However, challenges persist in the health, education, and transport departments, which have received qualified audit opinions with findings, raising concerns within the provincial administration. The Eastern Cape Rural Development Agency (ECRDA) also experienced regression in its audit outcomes.
Premier Mabuyane, during the meeting, acknowledged the improvements in provincial administration, emphasizing the commitment to excellence in governance. He stated, “We welcome this outcome which showcases our commitment to excellence in governance. It is a result of consistent efforts in building a capable, transparent, and ethical government.”
Furthermore, Premier Mabuyane pledged to motivate and inspire lagging departments to improve both audit outcomes and service delivery. He stressed the importance of preserving the gains made in the current administration and urged collective effort towards this goal.
In addition to improved audit outcomes, the 2022/23 report highlights a 33% decrease in irregular expenditure, totaling R911 million, compared to R1.35 billion in the previous year. This marks the second consecutive year of reduced irregular expenditure for the provincial government.
The Eastern Cape Provincial Government has taken note of areas that require attention, particularly in key service delivery portfolios and state-owned enterprises. The province is committed to implementing the Auditor General’s recommendations to build capable, accountable, and responsive institutions to fulfill its mandate.
