Cape Town – President Cyril Ramaphosa’s office has lost its clean audit status after the Auditor-General of South Africa (AGSA) flagged R1.7 million in irregular expenditure linked to grocery procurement during the 2025/26 financial year.
According to BusinessTech, the Presidency’s audit outcome was downgraded to an unqualified opinion with findings after officials failed to follow the required procurement procedures.
The groceries were procured using simplified written quotations instead of an open, public tender process, which was required because the expenditure exceeded R1 million.
The Auditor-General attributed the regression to “recurring irregular expenditure and inadequate measures to prevent it”, according to a summary of the findings cited by BusinessTech.
The findings also highlighted a procurement panel supplier that had failed mandatory evaluation requirements but was nevertheless appointed. Although the supplier was not allocated any work during the financial year, the auditor warned that future allocations could result in further irregular expenditure.
Accountability and corrective action
The development follows three consecutive years of clean audits at the Presidency, as reported by EWN in May 2026, when the Auditor-General commended the institution for maintaining financial discipline.
The Public Servants Association (PSA), which represents employees in the Presidency, has called for accountability and corrective action following the procurement finding.
The association urged the Presidency to clarify who authorised the expenditure, whether the state suffered financial prejudice and what measures would be introduced to prevent similar failures. It also cautioned against blaming employees who were not responsible for procurement decisions.
The audit findings extend beyond the grocery procurement. BusinessTech reported that the Presidency incurred R41,000 in fruitless and wasteful expenditure after officials failed to use booked travel arrangements. Investigations into responsibility for the travel-related losses were ongoing.
Annual performance targets
The Presidency achieved 37 of its 46 annual performance targets, representing 80% of the total. Its corporate management branch accounted for all nine unmet targets, achieving only nine of its 18 objectives.
The findings come amid broader concerns about public-sector financial management. In its March 2026 audit report, the Auditor-General warned of slow progress in strengthening governance and accountability, with only 151 of 417 national and provincial auditees achieving clean audits in 2024/25.
The Presidency’s latest audit regression highlights the importance of enforcing procurement rules and strengthening internal controls, particularly within institutions expected to set the standard for public-sector accountability.
Follow African Insider on Facebook, X and Instagram
Picture: X/@GovernmentZA
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
