Madonsela has found that President Jacob Zuma benefitted materially and undeservedly from upgrades to his private home.
"This will also severely impact international investors' confidence in the South African government," said Neasa CEO Gerhard Papenfus.
Neasa believes the report defies recent statements by government through the Minister of Finance that the state would tighten the reins on over-spending to, amongst others, deal with the current budget deficit.
In November last year, the auditor general reported that government's unauthorised "irregular" fruitless and wasteful expenditure during the 2012-13 financial year totalled R30.8bn.
"This report just adds coal to the fire and government should see this as an opportunity to positively and strongly reflect on the way forward," said Papenfus.
"The streets are alight with angry and poor people, tired of corrupt and wasteful government officials making empty promises of a better live for all."
Neasa believes Zuma's actions should be seen as a symptom of a corrupt society.
"The way in which society and government have dealt with corruption has laid the foundation for the actions by Zuma and members of his cabinet.
"Zuma should however take this opportunity to reach out to the nation and to take responsibility for his actions," said Papenfus.
Neasa said attacks on an institution such as the public protector will only result in the public undermining these organisations, the work they do and the rule of law.
Madonsela has recommended that Zuma repay some of these undue benefits and that he must explain himself to parliament.
"The South African public has a justifiable expectation that Parliament will sincerely demand answers from Zuma and that it will take the necessary action to ensure that the interests of the country's citizens are protected," said Papenfus.