The Media Development and Diversity Agency (MDDA) lost its clean audit because it listed a community TV station’s grant as approved when its board had never signed it off.
The agency’s chief financial officer, Tintswalo Baadjie, told Parliament’s Portfolio Committee on Communications and Digital Technologies about the mistake on Friday, 2 October.
“On the information we had initially disclosed in the financial statements, we had included one project that was not approved. Unfortunately, the project was a television station, and the amount that was requested and not approved was material, resulting in us losing the clean audit,” she said.
She did not name the station or say how much it had asked for.
The board signed off the grants and the financial statements on the same day.
“The final approval by the board was on the day the financial statements were approved as well. When we verified what was approved, we realised that one project was not approved but was included on the list,” Baadjie said.
The MDDA funds community radio, community TV and small publishers. In 2024/25 it had a clean audit. In 2025/26, the Auditor-General gave it an unqualified opinion with findings on compliance with the law.
Baadjie said the agency picked up the error itself, around 3 June, just after the statements were submitted.
“We immediately notified the AG, because depending on the auditor, sometimes they are lenient when you pick up errors and correct them yourselves. They did allow us to make the correction. However, at the end of the audit, they informed us that the technical team had decided to include it as part of material corrections,” she said.
The Auditor-General’s office also flagged two other compliance problems. Contract extensions were approved without following the agency’s own delegations. And the agency did not take steps to collect money owed to it.
Baadjie said most of the agency’s irregular expenditure comes from its office lease. The MDDA rents its building from the SABC. The lease was arranged without a proper market analysis, so every rent payment is now counted as irregular.
The MDDA chose not to fight the findings.
“The issues they raised are not insurmountable. We eventually agreed to the findings and will improve our internal controls. Otherwise we would be the same as the SABC, which has not concluded its audit even now,” Baadjie said.
“We just decided to choose our battles.”
The SABC’s 2025/26 audit is still not finished because of disputes with the Auditor-General.
The Auditor-General also reported one material irregularity across GCIS and the MDDA. It involves a financial loss of R1.2 million, which is being recovered. Management has until 25 November to deal with it.
MDDA board chairperson Philly Moilwa said it was an old matter that had been reopened.
“One of these material irregularities is an old matter that was reopened. This is a 2024 matter, which had to do with recoveries of funds that were not properly utilised. We, as an organisation, thought the matter was closed until the current audit,” Moilwa said.
“It’s important to put on record that this was one of the robust and serious engagements we had with the AG, because it was closed and we got a clean audit last year.”
Chief executive Shoeshoe Qhu said four funded projects had not fully accounted for the money they got.
“Initially there were four of these projects that had not accounted for the resources they received from the agency. They were able to account partially for the resources, and we are now trying to close out the matter,” she said.
One MP questioned the board’s oversight.
“Where was the board? Does the board not apply its own mind in dealing with your reports?” the MP asked.
Moilwa took over as board chairperson in July.
The MDDA said it met all its performance targets for the year.
Africa Daily has asked the MDDA which station the grant was meant for and how much it was.
