Ushering in a new era of clean governance - all Gauteng departments secure unqualified audit opinions - 30 August 2023

Office of the Premier 2023/08/29 - 22:00



Lerato Mailoane

Gauteng's departments and entities have taken bold strides towards clean governance, evidenced by a resounding achievement: all 100% of Gauteng departments have secured unqualified audit opinions.

This victory was announced by Gauteng Premier Panyaza Lesufi on Wednesday,30 August 2023, during an awards ceremony celebrating the exceptional performance of the provincial entities.

The Gauteng Ethics Advisory Council Chair, Terrence Nombembe, MECs and Senior Government Officials attended the Audit Outcomes Awards.

Presenting the awards, Lesufi underscored the significance of this accomplishment, noting that 17 departments and entities earned clean opinion audits in the 2022/23 financial year, showcasing a steady upward trend over the past three years.

 Key initiatives designed to enhance transparency, efficiency, and financial integrity within government operations were at the heart of these achievements.

"We want to debunk this myth that any clean audit doesn't result in service delivery. Clean audits are an embodiment of service delivery.

"There is no way you can service our people if you don't account properly with your finances. There is no way to reach your targets if you don't have the necessary financial muscle to reach that target," said Lesufi.

The strides in supply chain management were a pivotal factor in this success story. A rigorous vetting process was introduced for officials responsible for procuring goods and services on behalf of the government. This approach fortified the integrity of supply chain operations and contributed to a culture of accountability.

Department of Education stood out, earning recognition as the most improved department. This marked a remarkable milestone for the department, considering the size of its annual budget, which exceeds R60 billion, the second-largest allocation in the province.

The department dedicated extensive efforts to reach this significant milestone. In the past five years, the department intensified its efforts, starting with strengthening the control environment, identifying risk areas, focusing on those, and taking appropriate remedial action where wrongdoing has occurred.

The Department of Health's transformation over the past three years was equally impressive, achieving consecutive unqualified audit opinions.

The premier further commended the Department of Health for consecutively turning the corner in the past three years and achieving unqualified audit opinion. 

"The Department of Health has intensified internal control systems to improve its financial stability," said Lesufi. 

Internal control systems were overhauled in the department, improving financial stability. Among the other notable measures were vetting almost 1600 senior managers and officials in Supply Chain Management and Human Resources Management, curbing the practice of splitting orders to evade the tender process, and initiating investigations into any abuses detected by the Special Investigation Unit.

In addition to departmental triumphs, the Department of Human Settlements and the Department of Roads and Transport made the leap from qualified to unqualified audit opinions, showcasing their unwavering commitment to accountable financial management.

The momentum of progress also extended to entities, with a notable 58% (11) of them achieving clean audit opinions, marking a 22% improvement from the previous year. A select few earned unqualified audit opinions, while the Gauteng Housing Fund, which had a dormant status, received a disclaimed audit opinion. 

 The Transport Authority of Gauteng achieved incomplete opinion as the audit is still in progress while the Gauteng Liquor Board, Cradle and Dinokeng improved to a clean audit. 

Premier Lesufi emphasised that the journey toward clean audits is ongoing. The province's government remains steadfast in its commitment to maintaining achieved clean audits while striving to improve outcomes across departments and entities.

He added that intensifying internal controls will be pivotal in ensuring that these remarkable achievements aren't just preserved but further built upon, safeguarding transparency and accountability at every level of governance.

"Gauteng government is committed to maintaining the clean audits that have been achieved, and at the same time, improve audit outcomes of other departments and entities going forward. We will intensify internal controls to ensure we do not regress," added Lesufi.


RELATED NEWS

No related news