Presidency Loses Clean Audit Over R1.7m Grocery Procurement Non-Compliance

• The Auditor-General of South Africa downgraded the Presidency's audit status after flagging irregular grocery procurement worth R1.712 million
• The procurement was done through written price quotations, which are legally restricted to purchases below R1 million under Treasury regulations
• The Presidency's Chief Operating Officer addressed Parliament on the finding, revealing the irregular expenditure register stands at R12.025 million

SOUTH AFRICA — The Auditor-General of South Africa (AGSA) has stripped the Presidency of its clean audit status, downgrading it to an unqualified outcome with a finding after identifying non-compliance in its procurement processes.

According to News24, the demotion relates to the irregular procurement of groceries totalling R1.712 million, which were sourced through written price quotations rather than an open public tender process. Under the Public Finance Management Act and National Treasury regulations, written price quotations are legally confined to purchases below R1 million.

The Presidency, which spent R6.4 million in one year on travel, presented its 2025/26 annual report to the newly established Committee on the Presidency on 9 October 2026, with the AGSA appearing alongside officials to brief Parliament on the findings. The auditor flagged the violation as repeat non-compliance, attributing it to inadequate oversight and monitoring by senior management.

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Presidency accounts for irregular expenditure

Presidency Chief Operating Officer Rory Gallocher appeared before the parliamentary committee to address the findings directly. He confirmed that the department recorded R1.712 million in irregular expenditure for the period, a reduction from R1.948 million the previous financial year.

Gallocher characterised the amount as moderate and emphasised that no money was stolen. He also contextualised the figure against the department's historical record, noting that irregular expenditure has fallen substantially from R23 million in the 2021/22 financial year.

He further confirmed that the Presidency incurred no unauthorised expenditure during the period. However, R41,000 in fruitless and wasteful expenditure was recorded, arising from missed travel and accommodation bookings. The Presidency's cumulative irregular expenditure register currently stands at R12.025 million. On the accountability front, disciplinary processes have so far resulted in one official receiving a written warning.

What led to the status change

The AGSA's determination rests on the principle that procurement above R1 million must go through a competitive bidding process open to the public. By using written quotations for a purchase that exceeded this threshold, the Presidency bypassed a key safeguard built into public finance law.

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The characterisation of the matter as repeat non-compliance signals that the issue is not new, and that internal controls have not been sufficient to prevent it from recurring.

Ramaphosa's Ankole cattle sold for millions

In a related article, Briefly News reported on Ramaphosa’s Ankole heifer, Queen Arusha, which sold for a record R6.4 million at auction. The buyer has chosen to remain anonymous, while the record price prompted questions and jokes across South Africa.

Source: Briefly News