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Audit Woes and Graduate Unemployment: Are South African Universities in Crisis?
South Africa’s public universities are facing fresh criticism after new data revealed a steep drop in clean audit outcomes — a concern that economist Dawie Roodt says signals broader problems in the country’s higher education system. The latest figures from the National Government Handbook show that only 38% of public universities achieved clean audits in 2023, down from 62% in 2021.
These numbers have reignited a heated national debate over the state and future of South African universities. Roodt, a prominent economist with the Efficient Group, argues that many public institutions are not only poorly managed but are also failing to equip students with skills the economy actually needs.
“We’re producing degrees that don’t match our labour market demands,” Roodt said. “Meanwhile, there’s a critical shortage of skills like drone operation, genetics, and artisan trades.”
Graduates With Degrees, But No Jobs
Roodt’s criticism comes amid rising graduate unemployment, which has reached nearly 24% for those under 35, according to Statistics South Africa. The situation is particularly stark for young people, who make up more than half of the country’s working-age population.
He’s not alone in his concerns. Many South Africans have begun to question whether the current university system is still a reliable path to economic opportunity — especially in fields like political science and the humanities, where jobs are increasingly scarce.
However, his suggestion that many universities be converted into colleges — focused more on technical skills than academic theory — has drawn strong backlash from academics.
Academics Push Back: ‘It’s More Complex Than That’
Leaders in the education sector, including Professor Linda du Plessis of North-West University and Dr Phethiwe Matutu of Universities South Africa, argue that Roodt’s views oversimplify a deeply complex educational and socio-political landscape.
“He ignores the vast strides made in research, teaching, and societal transformation,” said Du Plessis. “Public universities are more than just job factories — they’re engines of mobility and equity.”
Matutu also noted that 25 out of 26 universities received unqualified audits in 2023, suggesting that financial management is generally sound, even if only a minority achieved clean audits. She also pointed out that public institutions educate 80% of university students in South Africa — a scale unmatched by private tertiary providers.
Audit Results: A Mixed Bag
Audit outcomes, while not the only measure of institutional health, offer a lens into financial governance and compliance. In 2023:
| University | 2020 | 2021 | 2022 | 2023 |
| Nelson Mandela Metropolitan University | Clean Audit | Clean Audit | Clean Audit | Financially Unqualified |
| North-West University | Clean Audit | Clean Audit | Clean Audit | Financially Unqualified |
| Rhodes University | Clean Audit | Clean Audit | Clean Audit | Clean Audit |
| Sefako Makgatho Health Sciences University | Financially Unqualified | Financially Unqualified | Financially Unqualified | Financially Unqualified |
| Sol Plaatje University | Financially Unqualified | Clean Audit | Audit not Finalised | Financially Unqualified |
| Stellenbosch University | Clean Audit | Clean Audit | Audit not Finalised | Clean Audit |
| University of Cape Town | Clean Audit | Clean Audit | Audit not Finalised | Clean Audit |
| University of Fort Hare | Qualified | Financially Unqualified | Financially Unqualified | Financially Unqualified |
| University of Johannesburg | Clean Audit | Clean Audit | Clean Audit | Clean Audit |
| University of KwaZulu-Natal | Financially Unqualified | Clean Audit | Financially Unqualified | Financially Unqualified |
| University of Limpopo | Financially Unqualified | Financially Unqualified | Audit not Finalised | Financially Unqualified |
| University of Mpumalanga | Clean Audit | Audit not Finalised | Financially Unqualified | Clean Audit |
| University of Pretoria | Clean Audit | Clean Audit | Clean Audit | Clean Audit |
| University of South Africa (UNISA) | Financially Unqualified | Financially Unqualified | Audit not Finalised | Audit not Finalised |
| University of the Free State | Clean Audit | Clean Audit | Audit not Finalised | Financially Unqualified |
| University of the Western Cape | Clean Audit | Clean Audit | Audit not Finalised | Clean Audit |
| University of the Witwatersrand | Clean Audit | Clean Audit | Audit not Finalised | Financially Unqualified |
| University of Venda | Financially Unqualified | Financially Unqualified | Audit not Finalised | Financially Unqualified |
| University of Zululand | Financially Unqualified | Clean Audit | Audit not Finalised | Audit not Finalised |
| Cape Peninsula University of Technology | Clean Audit | Clean Audit | Clean Audit | Clean Audit |
| Central University of Technology | Financially Unqualified | Audit not Finalised | Clean Audit | Financially Unqualified |
| Durban University of Technology | Financially Unqualified | Clean Audit | Clean Audit | Clean Audit |
| Mangosuthu University of Technology | Financially Unqualified | Financially Unqualified | Audit not Finalised | Clean Audit |
| Tshwane University of Technology | Clean Audit | Clean Audit | Audit not Finalised | Financially Unqualified |
| Vaal University of Technology | Audit not Finalised | Financially Unqualified | Audit not Finalised | Financially Unqualified |
| Walter Sisulu University of Technology and Science | Financially Unqualified | Financially Unqualified | Audit not Finalised | Financially Unqualified |
South African public university audit results
| Audit result | 2020 | 2021 | 2022 | 2023 |
| Financially Unqualified | 11 | 8 | 4 | 14 |
| Clean Audit | 13 | 16 | 8 | 10 |
| Audit not Finalised | 1 | 2 | 14 | 2 |
| Qualified | 1 | 0 | 0 | 0 |
| Financially Unqualified | 42% | 31% | 15% | 54% |
| Clean Audit | 50% | 62% | 31% | 38% |
| Audit not Finalised | 4% | 8% | 54% | 8% |
| Qualified | 4% | 0% | 0% | 0% |
By contrast, in 2022 only 31% of institutions received clean audits, with more than half failing to finalise their reports at all.
This erratic performance raises red flags about compliance with the Higher Education Act, which requires universities to submit audited financials within six months of their year-end.
What’s Next for Higher Education?
The debate reveals two sharply contrasting visions for South African higher education. One camp calls for leaner, skills-focused colleges to better align with economic needs. The other insists on protecting the broader mission of public universities, which includes research, critical thinking, and social redress.
As graduate unemployment continues to climb, and audit scores falter, the pressure is on for both sides to find common ground — or risk losing a generation of young South Africans to a system that promises more than it delivers.
{Source: BusinessTech}
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