Parliament, Wednesday, 7 October 2026 – The Portfolio Committee on Tourism on Tuesday called on South African Tourism (SAT) to address recurring weaknesses in financial reporting and accountability after the entity received its third consecutive qualified audit opinion.
The committee also welcomed the National Department of Tourism’s third consecutive clean audit. It received a briefing from the Office of the Auditor-General of South Africa (AGSA) on the audit outcomes for the 2025/26 financial year for the Department of Tourism and South African Tourism (SAT).
Members heard that the department achieved 86% of its annual performance targets, while SAT achieved 95%. However, the department missed its target of handing back 33 completed maintenance project sites. The AGSA attributed the delays to disputes over the scope of work, incomplete projects and outstanding close-out documentation.
The committee was informed that SAT’s qualification related to errors from previous reporting periods and unsupported adjustments to accumulated surplus. It showed weak financial controls, delayed implementation of audit recommendations and inadequate consequence management. It also recorded material non-compliance with the Public Finance Management Act and Treasury Regulations.
By 31 August 2026, contractual arbitration relating to a R4.1 million pre-payment for undelivered dome-related services had started, Members heard. The AGSA indicated that it would no longer pursue the matter as a material irregularity but would follow up outstanding actions through the normal audit process.
The committee also heard that the portfolio’s closing balance of irregular expenditure increased from R91.2 million to R109 million. SAT recorded R16.6 million in irregular expenditure during the year, while investigations into R87.9 million are still underway.
The committee welcomed Mr Graham Wood as Chairperson of the SAT Board and called on the entity to submit an audit action plan within 30 days. It also asked SAT to strengthen financial and procurement controls, fill critical vacancies, investigate misconduct and enforce consequence management. The committee also requested quarterly progress reports on implementation of the audit action plan and any outstanding actions relating to the dome payment and irregular expenditure. The department was directed to expedite completion and handover of delayed maintenance projects and, together with SAT, to improve value for money and assess the impact of marketing, training, infrastructure and Expanded Public Works Programme initiatives.
The Chairperson of the committee, Ms Ronalda Nalumango, said both institutions must address recurring underspending and its underlying causes. “Both the department and SA Tourism must deal with all the root causes of underspending,” she said.
The committee also stressed that the Tourism Growth Partnership Plan and the Tourism Route Development Marketing Plan, which are being implemented in the current financial year, must support growth of the sector by removing barriers and addressing persistent challenges. Priority measures should include expanding air access, implementing travel-facilitation initiatives such as Electronic Travel Authorisation, increasing the number of trusted tour operators and extending the programme to more countries. The department and SAT should also strengthen tourist safety and security, grow domestic tourism as the foundation of the sector, spread the benefits of leisure and business tourism across the country and address seasonality.
These priorities, the Chairperson said, will inform the committee’s Budgetary Review and Recommendation Report (BRRR), which will set out its key observations and strategic recommendations. Once adopted, the committee will submit the report to the Minister and the SAT Board.
The committee has requested written responses within 30 days.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TOURISM, MS RONALDA NALUMANGO.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Sureshinee Govender (Ms)
Cell: 081 704 1109
Email: sugovender@parliament.gov.za
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