CAPE TOWN, Thursday 8 October 2026 — South African Tourism has received a qualified audit opinion for the third consecutive financial year, with Parliament raising concerns over recurring financial reporting weaknesses, irregular expenditure and delayed corrective action.
The Portfolio Committee on Tourism examined the entity’s 2025/26 audit outcomes during proceedings held on Tuesday, with Parliament releasing its findings on Wednesday.
The Auditor-General identified errors carried forward from previous reporting periods and unsupported adjustments to accumulated surplus.
The findings also highlighted weaknesses in financial controls and compliance with the Public Finance Management Act.
Irregular expenditure reaches R109 million
The committee heard that the tourism portfolio’s closing balance of irregular expenditure had increased from R91.2 million to R109 million.
South African Tourism recorded R16.6 million in irregular expenditure during the financial year.
Investigations involving R87.9 million remain outstanding.
The Auditor-General also identified delayed implementation of previous audit recommendations and inadequate consequence management.
The findings raise concerns about whether repeated audit weaknesses are being addressed effectively.
Irregular expenditure refers to spending that does not comply with applicable financial requirements and does not automatically establish fraud or financial loss.
R4.1 million payment remains under scrutiny
The committee also received an update on a disputed R4.1 million pre-payment for dome-related services that were not delivered.
Parliament was told that contractual arbitration had commenced by 31 August 2026.
The Auditor-General indicated that the matter would no longer be pursued as a material irregularity but would remain subject to follow-up through the normal audit process.
The committee requested continued reporting on outstanding actions relating to the payment.
It also called for stronger procurement controls and investigations into possible misconduct.
Tourism Department maintains clean audit
The findings contrast with the performance of the national Department of Tourism.
The department received its third consecutive clean audit opinion.
It achieved 86% of its annual performance targets, while South African Tourism achieved 95%.
However, the department missed a target involving the handover of 33 completed maintenance project sites.
The Auditor-General attributed the delays to disputes over project scope, incomplete work and outstanding documentation.
The committee said both institutions needed to demonstrate that expenditure and programmes were producing measurable benefits.
Parliament orders corrective action
The committee welcomed Graham Wood as chairperson of the South African Tourism board.
It directed the entity to submit an audit action plan within 30 days.
The committee also requested quarterly progress reports covering financial controls, outstanding investigations and implementation of corrective measures.
Committee chairperson Ronalda Nalumango said the department and South African Tourism needed to address the underlying causes of their financial and operational shortcomings.
The committee’s findings will inform its Budgetary Review and Recommendation Report.
South African Tourism will now be expected to demonstrate progress in resolving its audit qualifications and strengthening accountability.
