How Ace Magashule Messed Up The Free State

A recent report by the Auditor-General’s office showed almost R10-billion in irregular expenditure in Free State under Magashule’s premiership.
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Free State premier, Ace Magashule speaks during the Human Rights Day Celebrations on March 21, 2016 in Johannesburg, South Africa.
Vathiswa Ruselo/Sowetan/Gallo Images/Getty Images

Ace Magashule, the ANC's controversial newly appointed secretary-general, is leaving behind a province in administrative shambles to take up office at Luthuli House.

In addition to a series of damning allegations around the awarding of tenders in the province, a recent report by the Auditor-General's office showed almost R10-billion in irregular expenditure in Free State under Magashule's premiership.

Democratic Alliance leader in the province Patricia Kopane had only scathing words to describe Magashule's tenure in Free State, saying residents of the province are starving while the ANC premier furthers his political agenda.

The AG's report on national and provincial audit outcomes for 2016-2017 is a damning reflection on Magashule's leadership capacity. This is what it found about the state of the province under Magashule, now set to hold significant authority at Luthuli House:

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Cyril Ramaphosa, South Africa's deputy president and newly elected president of the African National Congress party (ANC), center, gestures on stage during the 54th national conference of the African National Congress party in Johannesburg, South Africa, on Monday, Dec. 18, 2017. With his election as leader of the ruling African National Congress on Monday, Ramaphosa, 65, will be the party's presidential candidate in 2019 and may take over running the country from�Jacob Zuma�sooner than that if he's ousted before the end of his second term. Photographer: Waldo Swiegers/Bloomberg via Getty Images
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Overall, there was a regression in audit outcomes over the past four years. The premier's office, which the report said "should lead by example in the province", regressed from an unqualified opinion with findings to a qualified opinion.

The AG urged political and administrative leadership to take accountability for and address the control weaknesses that resulted in a significant regression in audit outcomes. Provincial leaders committed to resolving disputes, but it never happened.

"The slow response by the political and administrative leadership to honour their commitments and address the weak control environment, a lack of consequences and the continued disregard for compliance with legislation resulted in findings at 13 auditees and material adjustments to the financial statements being required at 10," the report said.

Irregular expenditure disclosed in the financial statements increased from R1,927-billion to R5,421-billion. But the report found that even this amount was understated, after the department of agriculture and rural development and the premier's office did not disclose additional irregular expenditure of R974-million, and subsequently received a qualified audit opinion.

The closing balance of irregular expenditure was R9,224 billion.Auditor-General

"[This] is an indication that irregular expenditure was not always investigated adequately to identify the officials to be held accountable for the possible recovery of losses, resulting in the year-on-year increase in the balance," the report said.

The closing balance of irregular expenditure was R9,224-billion.

"Where irregular expenditure was investigated, officials were seldom found liable, and amounts were written off. The leadership's involvement in the decision-making that led to transgressions resulted in their inability to hold staff accountable and, as a result, adequate consequence management processes were not implemented."

Speaking to HuffPost, Kopane said the current administrative condition of Free State is a reflection of "poor governance".

Our people are starving while Magashule uses the money to further his political agendaPatricia Kopane

"The province has some of the highest unemployment rates. Two hospitals have been opened but are not operating. More than 40 percent of the youth in Free State are unemployed. Our people are starving, while Magashule uses the money to further his political agenda," she said.

"In Metsimaholo, which is our economic hub, 41 percent of the youth are unemployed. Healthcare in general is failing, clinics are running short of medicine. Schools are left without resources, and infrastructure is failing."

Magashule's office could not be reached for comment at the time of publication.