SA National Departments Incur R7.9 Billion In Wasteful And Irregular Expenditure

National departments across South Africa have incurred R7.9 billion in unauthorised, irregular, fruitless, and wasteful expenditures over the past year, highlighting ongoing financial mismanagement within government structures.

Finance Minister Enoch Godongwana disclosed the figures in a recent parliamentary response, outlining expenditure trends for the 2023/2024 financial year.

“R4.9 billion – Unauthorised expenditure, R2.9 billion – Irregular expenditure, R161 million – Fruitless and wasteful expenditure.”

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This occurs when departments exceed their allocated budgets. Six national departments reported unauthorised spending, with the Department of Defence accounting for the largest share. This includes; “Defence – R3.37 billion, Correctional Services – R614.3 million, International Relations and Cooperation (Dirco) – R435.6 million, Justice and Constitutional Development – R291.8 million, Statistics South Africa (Stats SA) – R128.3 million, Cooperative Governance and Traditional Affairs (Cogta) – R84.8 million.”

Irregular expenditure occurs when spending violates financial regulations such as the Public Finance Management Act (PFMA). A total of 29 departments were responsible for this category, with the Department of Defence leading again which includes; “Defence – R977.5 million, Home Affairs – R578 million, Basic Education – R210.7 million, Dirco – R207.5 million, Employment and Labour – R171.5 million”

This refers to avoidable spending that could have been prevented with better oversight. Twelve departments managed to avoid such expenses, but others recorded significant amounts:

“Public Works and Infrastructure – R56.8 million, Defence – R50.9 million, Basic Education – R41.4 million, Mineral Resources and Energy – R3 million and Transport – R1.9 million.”

When asked about consequences for officials responsible for financial mismanagement, Godongwana emphasised that disciplinary actions fall under the authority of accounting officers within each department.

“Information related to disciplinary action instituted by accounting officers and authorities can be found in the annual reports of those institutions,” he stated.

However, accountability remains a challenge, as previous reports indicate a pattern of inadequate enforcement of financial controls.

The Auditor-General’s office previously reported that between 2018 and 2023, national departments and state-owned entities (SOEs) collectively accumulated, R120 billion – Irregular expenditure, R1.48 billion – Fruitless and wasteful expenditure (across 36 departments), R2 billion – Fruitless and wasteful expenditure (SOEs),R50.65 billion – Irregular expenditure (38 government departments), R69.35 billion – Irregular expenditure (27 SOEs).

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Key drivers of this financial mismanagement include; Delayed payments to suppliers, overpayment for services, insufficient skills and capacity as well as weak governance and lack of accountability.

Despite repeated warnings and oversight efforts, wasteful and irregular spending remains a persistent issue in South Africa’s public sector. Calls for stricter financial management, improved oversight, and accountability measures continue to mount, as the country grapples with ongoing concerns over corruption and misuse of public funds.

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