DFFE Earns Unqualified Audit Amid Budget Cuts, Reinforcing Fiscal Integrity

The Minister highlighted that the DFFE’s success is particularly noteworthy given the financial pressures facing government departments amid fiscal consolidation efforts.

The Department of Forestry, Fisheries and the Environment (DFFE) has secured an unqualified audit opinion for the 2024/25 financial year, marking a significant milestone in the department’s pursuit of sound financial management and transparent governance. The announcement was made by Minister of Forestry, Fisheries and the Environment, Dr Dion George, who praised the department’s resilience and commitment to fiscal responsibility despite enduring a R2.5 billion budget cut over the Medium-Term Expenditure Framework (MTEF).

A Testament to Financial Discipline Amid Constraints

“This achievement reflects our unwavering dedication to responsible stewardship of public resources,” said George. “Even with severe budget constraints, our team has maintained the highest standards of financial governance and integrity.”

The Minister highlighted that the DFFE’s success is particularly noteworthy given the financial pressures facing government departments amid fiscal consolidation efforts. Despite limited resources, the department continues to balance environmental protection priorities with effective budgetary control.

Auditor-General’s Findings and Key Recommendations

The Auditor-General of South Africa (AGSA) commended the DFFE’s progress in strengthening internal controls, improving governance structures, and implementing risk-based oversight systems. The unqualified audit indicates that the department’s financial statements are free from material misstatements and comply with the Public Finance Management Act (PFMA) and relevant Treasury regulations.

However, the audit report also pointed out areas that still require focused attention — particularly the management of historic irregular expenditure linked to legacy contracts. These older contracts, inherited from previous financial periods, were deemed non-compliant with Treasury guidelines and are currently under active review.

George acknowledged the findings, emphasizing that these legacy issues do not involve current mismanagement but rather reflect past administrative shortcomings. “We have implemented stronger oversight, improved contract management, and stricter accountability processes to ensure that all future expenditure fully complies with the law,” he said.

Strengthening Oversight and Governance Systems

To address the AGSA’s recommendations, the DFFE has rolled out an extensive series of corrective governance measures. These include:

• Enhancing the internal audit and risk management functions to provide independent assurance on financial and operational processes.

• Tightening procurement monitoring systems to ensure all tenders and contracts meet compliance standards.

• Conducting regular compliance and performance reviews, including spot audits and management evaluations.

• Improving consequence management mechanisms to ensure accountability for past irregularities.

These reforms form part of a wider institutional modernisation drive aimed at improving governance, transparency, and efficiency across all departmental programmes — from biodiversity conservation and ocean economy projects to forestry revitalisation and climate adaptation initiatives.

Balancing Environmental Mandates and Fiscal Responsibility

The DFFE continues to play a critical role in managing South Africa’s natural resources, combating climate change, and promoting sustainable development. Despite budget cuts, the department has prioritized essential environmental programmes — such as expanded reforestation efforts, marine conservation, and waste management reforms — while ensuring expenditure discipline.

Dr George reiterated that fiscal prudence remains inseparable from the department’s environmental mission. “A sound audit outcome is not an end in itself. It reflects a culture of integrity, professionalism, and accountability that must define how government serves the public. Our focus remains on ensuring that good governance translates into real, sustainable results,” he said.

Commitment to Ongoing Improvement and Public Trust

The Minister affirmed that maintaining the unqualified audit opinion is part of a broader effort to rebuild public confidence in government institutions. The DFFE’s financial success, he noted, provides a model for responsible governance — demonstrating that efficient management and environmental stewardship can coexist, even under constrained fiscal conditions.

“Our ultimate goal is not just to achieve clean audits, but to ensure that every rand spent delivers tangible benefits for South Africans and the environment,” George said. “We will continue to refine our systems, enforce accountability, and foster a culture of ethical leadership throughout the department.”

Looking Ahead: Strengthening Institutional Capacity

The DFFE plans to expand its capacity-building initiatives to support continuous improvement in audit readiness and financial governance. These efforts include staff training in compliance management, the digitisation of financial reporting processes, and collaboration with the National Treasury and Office of the Auditor-General to streamline performance reporting frameworks.

Through these sustained reforms, the department aims to maintain fiscal credibility while advancing its environmental mandate — contributing to a green, inclusive, and transparent public sector that delivers measurable impact.