Ramaphosa’s office loses clean audit status by buying groceries
The South African presidency lost its clean audit status for the 2026 financial year, moving to an unqualified opinion with a material finding.
The clean audit status was lost due to R1.7 million in irregular expenditure, which the Auditor-General of South Africa (AGSA) said was not adequately prevented.
“AGSA attributed the regression to recurring irregular expenditure and inadequate measures to prevent it,” the presidency meeting summary said.
The R1.7 million was spent on procuring groceries, which the AGSA said did not follow the correct process because simplified written quotations were used.
The Auditor General said that because the expenditure exceeded R1 million, an open, public tendering process was required.
The presidency was also flagged due to one of its tendered suppliers, which the AGSA said should have been excluded during evaluation.
This was due to the appointed supplier having failed mandatory evaluation processes. However, the supplier was not allocated any work during the year.
Since the supplier was not allocated work, no irregular expenditure arose from the appointment, but the AGSA warned that it could arise in the future.
“AGSA found that a supplier appointed to a panel had failed mandatory evaluation requirements and should have been excluded at the first evaluation phase,” the meeting report said.
“No work was allocated to that supplier in 2025/26, but AGSA warned that future payments following an allocation of work would result in irregular expenditure.”
For the 2026 financial year, no new unauthorised expenditure was reported, with overspending from the prior year standing at R39.9 million.
“Prior-year overspending of R39.9 million, mainly associated with unfunded mandates, awaited the parliamentary regularisation process,” the meeting report said.
“A year-end bank overdraft of R39 million contributed to the department’s net current liability and net liability positions.”
“AGSA assessed financial health as concerning but identified no going-concern uncertainties.”
80% of targets achieved
The AGSA noted that the presidency achieved 80% of its annual targets, with 37 out of 46 performance indicators met.
These annual targets were broken into individual departments within the presidency, with one accounting for all missed targets:
- Private office: 10 out of 10
- Office of the deputy presidency: 9 out of 9
- Cabinet branch: 5 out of 5
- Policy and research services: 4 out of 4
- Corporate management: 9 out of 18
“Corporate Management achieved nine of its 18 targets, or 50%, and accounted for all nine targets reported as unmet,” the meeting report said.
The unmet targets included failing to meet procurement targets from businesses owned by historically disadvantaged persons and failing to dispatch a Special Investigations Unit (SIU) report.
While irregular expenditure was approximately R1.7 million, the AGSA also flagged R41,000 in fruitless and wasteful expenditure.
The fruitless and wasteful expenditure was incurred due to officials failing to use booked travel arrangements.
“The travel matters had been referred to the Loss Control Committee, and investigations to establish responsibility were ongoing.”
For Operation Vulindlela, the AGSA found that 50% of planned reforms were on track in the operation’s second phase.
This operation is a joint effort between the presidency and the National Treasury, aimed at boosting economic reform and modernising infrastructure.
The AGSA also found that the methods used by the presidency to track the implementation of reforms were effective.
“It confirmed that the Presidency had an effective dashboard and methodology for tracking implementation, used strategic interventions and escalation where necessary, and leveraged Cabinet and Forum of South African Directors-General structures,” the meeting report said.
“AGSA distinguished this assessment of coordination and progress from the measurement of economic impact, which would require a medium-to long-term monitoring, evaluation and learning framework.”
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