South African Tourism has received an unqualified (‘clean’) audit for its 2021/2022 performance from the Auditor General of South Africa (AGSA), Tsakani Maluleke.

This was announced by Minister of Tourism, Lindiwe Sisulu, during a media briefing yesterday (September 1) at SA Tourism’s offices in Johannesburg. 

 “I wish to congratulate Acting CEO, Themba Khumalo and his team, as well as the board for this remarkable achievement during a difficult year for the industry as a whole,” Sisulu said. 

This follows last year’s 2020/2021 qualified audit – the first time in 17 years the entity had received a qualified audit – in which the AGSA report found “fruitless, irregular and wasteful expenditure of R20 million (€1.1m)”.

According to SA Tourism, the AGSA findings were based on a Board-initiated forensic investigation that was shared with both the AG and Minister Sisulu.

The SA Tourism Board started a process of consequence management after the 2020/2021 audit report. 

“The process of consequence management is in line with the recommendations of the investigation and a subsequent legal opinion as well as the Board’s strong commitment to its fiduciary responsibilities. The Board has also tasked Management to put in place systems to improve the internal control environment,” said SA Tourism in a statement at the time. 

EDITOR’S NOTE: 

According to Investopedia.com, an unqualified report concludes that the financial statements of a company are fair and transparent based on thorough research. In an unqualified report, auditors will conclude that the financial statements of a business present its affairs fairly in all material aspects.

A qualified opinion is a reflection of the auditor's inability to give an unqualified, or clean, audit opinion.