SA Government Departments Squander R7.9bn in Taxpayer Funds

South Africa’s national departments have squandered R7.9 billion in unauthorised, irregular, and fruitless and wasteful (UIFW) expenditure over the 2023/2024 financial year, raising fresh concerns over financial mismanagement and lack of accountability.

Finance Minister Enoch Godongwana revealed these shocking figures in a parliamentary response, highlighting how government spending continues to spiral out of control.

Breakdown of UIFW Expenditure

1. Unauthorised Expenditure – R4.9bn

This type of spending occurs when departments exceed their allocated budgets. Six national departments were responsible for the R4.9 billion in unauthorised expenditure:

• Department of Defence: R3.37 billion
• Correctional Services: R614.3 million
• Dirco (International Relations): R435.6 million
• Justice and Constitutional Development: R291.8 million
• Statistics South Africa (Stats SA): R128.3 million
• Cooperative Governance (Cogta): R84.8 million

2. Irregular Expenditure – R2.9bn

Irregular expenditure arises when departments violate legal financial procedures, such as the Public Finance Management Act (PFMA). The worst offenders included:

• Department of Defence: R977.5 million
• Home Affairs: R578 million
• Basic Education: R210.7 million
• Dirco: R207.5 million
• Employment and Labour: R171.5 million

3. Fruitless and Wasteful Expenditure – R161m

This refers to avoidable spending due to poor financial management. The biggest culprits were:

• Public Works and Infrastructure: R56.8 million
• Defence: R50.9 million
• Basic Education: R41.4 million
• Mineral Resources and Energy: R3 million
• Transport: R1.9 million

Recurring Financial Mismanagement in Government

This latest revelation is part of a broader trend of financial mismanagement in South Africa’s government.

• R120bn in irregular spending over five years: The Auditor-General reported last year that government departments and state-owned entities (SOEs) had racked up R120 billion in irregular expenditure between 2018 and 2023.
• Growing fruitless expenditure: Government departments spent R432 million wastefully in 2022/2023 alone.
• SOE mismanagement: State-owned enterprises contributed to over R2 billion in fruitless expenditure and R69 billion in irregular spending during the same period.

Calls for Accountability

Despite these alarming figures, disciplinary action remains rare. While the PFMA empowers department heads to take action against officials responsible for misuse of funds, enforcement has been weak.

“Information related to disciplinary action can be found in the annual reports of those institutions,” Godongwana stated, raising concerns about a lack of transparency and accountability.

The Cost to South African Taxpayers

Financial mismanagement not only wastes public funds but also threatens service delivery. Experts warn that without stricter financial controls and accountability, UIFW expenditure will continue to rise, burdening taxpayers and limiting resources for essential services.

With billions lost each year, South Africans are demanding stronger oversight, tougher penalties for wasteful spending, and real consequences for those responsible.

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