The Presidency lost its clean audit for 2025/26 after the Auditor-General found that it had spent R1.7m on groceries without following the proper tender process.
According to BusinessTech, the Auditor-General found that the Presidency had repeatedly broken procurement rules and hadn't done enough to prevent further irregular spending.
Faith Ngwenya, CIBA's head of education, sees the finding as a sign of a deeper control problem. “Either the procurement system is weak or the controls that have been set out were never followed,” says Ngwenya.
Grocery spending above R1m needed an open tender
Under National Treasury's procurement rules, government departments must use an open tender when the total expected cost of a purchase exceeds R1m, including VAT.
For accountants, this means checking the total expected cost and making sure the purchase goes through the department's procurement team. The team must advertise the tender publicly, evaluate the bids, and get the necessary approval before awarding the contract.
They also can't split purchases into smaller orders to avoid this requirement.
In August 2026, The Citizen reported that the Auditor-General had flagged R6.8m spent by the Department of Transport on livestreaming and media services through seven separate quotations, each below R1m.
The Auditor-General said these purchases should have been combined and put out to tender. The spending was classified as irregular. However, the department denied deliberately splitting the purchases, saying each quotation covered a different event.
Deviations should be reported when they happen
Ngwenya says accountants involved in procurement should make sure every purchase follows their department's rules.
“Any deviation from the rules should be reported when it happens, rather than waiting for internal auditors or the Auditor-General to discover it,” she says.
If you discover or suspect irregular spending, the National Treasury requires you to report it immediately in writing to the head of your department or an official authorised to receive these reports.
For more on irregular spending, have a look at our guide, which explains the different types of unlawful or wasteful government spending and what the consequences are.
Suppliers to government can face wider scrutiny
Ngwenya warns that suppliers can also face consequences if an investigation finds they were involved in wrongdoing.
“Further investigations could uncover more irregularities, leading to court action or even a commission of inquiry, such as the Madlanga Commission,” she says.
The Madlanga Commission has investigated allegations surrounding a R360m police health services contract, including claims that officials helped the supplier secure the tender.