PREMIER MaQueen Letsoha-Mathae has acknowledged both progress and persistent challenges in the Free State’s financial governance, as revealed in the latest audit outcomes for the 2023/24 financial year.
Speaking during her State of the Province Address (SOPA) on Friday, the premier highlighted efforts to strengthen accountability while noting continued financial mismanagement in some provincial departments and municipalities.
“We strive for accountability and sustainability in the management of public finance. How we use and account for every cent matters,” Letsoha-Mathae stated.
According to the premier, the latest audit outcomes showed improvements in provincial government departments, with three achieving clean audits, eight receiving unqualified opinions and seven obtaining qualified audit opinions.
In the municipal sector, seven municipalities attained unqualified audits, nine were qualified, while one received a disclaimer – an improvement from the previous financial year’s five disclaimers.
“We commend these improvements and commit to do more and better,” she assured.
However, despite the progress, financial mismanagement remains a concern, with the premier revealing that the provincial Treasury continues to intervene to enhance fiscal governance.
To address these challenges, the province has introduced several measures, including the establishment of District Audit Action Plan Forums to oversee the implementation of audit recommendations and the timely submission of annual financial statements.
In addition, Letsoha-Mathae announced the formation of a Provincial Audit Steering Committee, which will include representatives from the provincial Treasury, the Department of Cooperative Governance and Traditional Affairs, the South African Local Government Association and the Auditor General of South Africa.
The committee’s mandate will be to tackle financial issues that hinder improved audit outcomes.
The province is also implementing an unauthorised, irregular, fruitless and wasteful expenditure reduction and preventative strategy, alongside targeted support and training for municipal supply chain management, internal audit and risk management units.
The Free State has long struggled with financial mismanagement in both government departments and municipalities, with corruption and inefficiency often cited as key concerns.
While the latest audit report signals improvement, the premier’s commitments will be closely watched to ensure that reforms lead to lasting financial accountability in the province. – Staff Reporter