In 2007 Transformation Audit – Leadership and Legitimacy, we see a paradox: normally in democracies, economic and employment growth see higher ratings for government. But public confidence seems to be severely shaken. Confidence in leaders, and above all in reprensentative instituitions, has dropped sharply. Government and the ruling party face the imperative of healing the rifts opened by the protracted leadership battle, and regaining the trust both have lost. Over all, our scorecards show policy inroads into crucial areas of concern for the poor, but increasingly it is the hearts of South Africans that are disaffected.