The auditor-general’s report shows a stark contrast between the department’s clean audit and SA Tourism’s repeated financial blunders.
Tourism Minister Patricia de Lille’s department was praised for its overall strong performance.
But its agency, SA Tourism, was slammed by MPs for its lacklustre delivery with underlying poor bookkeeping in the outgoing financial year.
Strong performance and job creation shortfall
The department reported spending 94.6% of its R2.3 billion budget, while achieving 92.8% of its annual targets in the 2024-25 financial year.
The portfolio committee on tourism, which met last week to review the annual financial and performance results for the 2024- 25 financial year after a briefing from the auditor-general (AG), did not hold back in criticising the agency.
However, it also cautioned the department about its failure to meet the key targets for creating jobs under its expanded public works programme. Committee chair Ronalda Nalumango was impressed with the department’s good governance and performance, which she contrasted with that of the agency.
Nalumango said the fact that the department achieved a clean audit for the second consecutive year, something the AG with the committee’s concurrence, attributed to stable leadership.
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A consistent implementation of the audit action plan, and the department’s ability to compile compliant annual financial statements were also contributing factors to the department’s success.
SA Tourism criticised for poor bookkeeping
On the other hand, the agency received a qualified audit opinion for the second consecutive year, with the audit outcomes remaining stagnant.
In the early AG briefing, it emerged that the agency’s outcome was caused by its poor bookkeeping, which involved poor record-keeping, lack of discipline in daily and monthly controls and material misstatements in the financial statements.
The committee noted the AG’s concern about significant instability at the board and senior management levels, with critical senior posts such as those of the chief financial officer (CFO) and chief audit executive vacant.
The agency also has an acting chief executive officer and an acting CFO.
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