Provinces surrender R923m in unspent funds
South African provinces surrendered R923 million in unspent conditional grant funds during the 2023-24 financial year, according to Finance Minister Enoch Godongwana.
The surrendered amount represents funds that provinces were unable to utilise within the allocated timeframe across critical sectors, including health, education, and human settlements.
Gauteng province recorded the highest surrender at R465.4 million, while KwaZulu-Natal was the only province that did not surrender any funds.
Provincial breakdown reveals disparities
The provincial breakdown, revealed in a parliamentary response to DA MP Wendy Alexander, shows stark differences in spending capacity across South Africa's nine provinces.
Gauteng's R465.4 million surrender dwarfed other provinces, representing nearly half of all surrendered funds.
The Western Cape surrendered R224.4 million, making it the second-highest contributor to unspent funds.
Limpopo followed with R68.6 million, while the North West province surrendered R66.6 million.
The Eastern Cape surrendered R62.7 million, while the Free State's unspent amount totalled R19.3 million.
Mpumalanga surrendered R10.5 million, and the Northern Cape recorded the smallest surrender at R5.6 million.
ALSO READ: Here's how much National Treasury has spent on consultants in two years
Human settlements sector records highest underspending
According to information provided by Godongwana, analysis by sector revealed that human settlements experienced the most significant underspending, surrendering R409.1 million of allocated funds.
This represented nearly 45% of all surrendered provincial grant money.
Health sector underspending reached R193.3 million, while roads and transport surrendered R155.9 million.
The education sector returned R92.3 million in unspent funds.
Sports, arts and culture surrendered R32.7 million, while agriculture returned R24.4 million.
The public works sector recorded the smallest surrender at R15.5 million.
ALSO READ: Godongwana hits back at Reserve Bank's 3% inflation target
Systemic challenges behind underspending
Godongwana outlined specific challenges that prevented provinces from utilising allocated funds across different sectors.
Human settlements faced particularly severe constraints that hindered project delivery.
'Unfilled vacancies, such as planners, engineers and project managers, led to projects not being delivered on time, resulting in the under expenditure, and subsequent surrender of funds,' Godongwana explained regarding human settlements underspending.
Meanwhile, the health sector encountered procurement delays that significantly impacted spending capacity.
'Delays in procurement on the National Tertiary Services grant. A large part of health technology is imported,' the minister noted.
ALSO READ: 'Barrelling towards collapse': Concerns mount as Godongwana gives Morero deadline to fix Joburg's finances
Education and infrastructure sectors face implementation delays
The education sector underspending stemmed from procurement and staffing challenges that delayed programme implementation.
'Delays in the procurement of laptops for officials and the non-appointment of personnel under the School Nutrition Programme' contributed to the R92.3 million surrender, according to Godongwana.
Public works struggled with employment programme timelines that affected the utilisation of funds.
'Contracts of EPWP workers not finalised on time, hence unspent funds were surrendered and not rolled over,' the minister stated.
Transport sector challenges included legal obstacles and contractor performance issues.
'Delays in project completion due to legal action that halted implementation, and poor contractor performance, which resulted in the project not being completed,' Godongwana explained.
ALSO READ: Macpherson suspends all EPWP funds to municipality
Agriculture sector hampered by community unrest
The agriculture sector's R24.4 million surrender resulted from external disruptions.
'Projects not completed due to community unrest, and planned training of farmers not completed on time' prevented full fund utilisation, the minister revealed.
Bus subsidy allocations within the transport sector also contributed to underspending due to contracting delays.
'Regarding bus subsidies, some contracts were only finalised in the 2nd quarter, resulting in the funds being unspent,' Godongwana noted.
National Treasury response and oversight measures
According to Godongwana, the National Treasury has implemented regular engagement mechanisms to address provincial underspending challenges.
These interventions aim to improve grant performance across all sectors and provinces.
'The National Treasury regularly engages with departments responsible for administering conditional grants,' Godongwana stated.
The treasury's approach includes active participation in sector-specific review processes.
'The National Treasury officials frequently participate in sectoral meetings where grant performance is reviewed,' the minister explained.
He said the treasury provides ongoing support to enhance implementation capacity.
'During these engagements, issues of non-performance are raised with both provincial and national departments and the National Treasury provides guidance to support improved implementation,' Godongwana stated.
READ NEXT: R279 million budgeted for National Treasury's building rentals and parking spaces
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
14 minutes ago
- The Citizen
SA consumers prioritise lifestyle over essentials
Mzansi's spending habits reveal a nation hooked on status and convenience, even if it means financial strain and mounting debt. When South Africans go to therapy, it's retail. There seems to be no end to the lengths anyone will go to in order to wear the right brands, dine at the trendiest spots and keep up appearances, all while quietly cringing when the bills arrive. Research across several studies suggests that Mzansi has a serious appetite for instant gratification. We are spending big, often prioritising nice-to-haves over essentials. Household spending hits trillions In 2022 and 2023, South African households collectively spent a staggering R3 trillion, according to Statistics SA – an average of R143 691 per household. A significant portion of this, nearly 76%, went on housing, food, transport and insurance. But when it comes to non-essentials, many are splurging on things that could easily be avoided. Entertainment costs are soaring According to a 2023 study by the Bureau of Market Research, South Africans spent R176.7 billion on entertainment and media in 2022, with projections to hit R231.2 billion by 2027. Streaming services like Netflix, Showmax and Amazon Prime are now a staple in most homes, but they come at a steep price. High-income households, especially men over 40, are reportedly forking out over R1 000 a month for these services according to a Standard Bank published survey in 2023. Lower income households aren't immune to spending on showbiz either. Monthly costs on television average R336. ALSO READ: Lower wage workers being exploited as 43% of South Africans buy food on credit DStv, which has seen its premium package prices rise from R625 in 2013 to over R1 000 now, continues to have a tight grip on consumers. Despite financial strain, 66% of lower-income households kept their DStv subscriptions, often sacrificing essentials like food or domestic help just to avoid cancellation. Biltong and big weddings don't come cheap But what is a rugby game on an expensive subscription service without indulging in over-priced air dried meat. Biltong prices have surged, according to Reddit users and anecdotal evidence at store level. It shot up by almost 60% in the past eight years to almost R400/kg in some instances. Some Reddit users have called out biltong for being 'three times the price of meat'. Wedding season is coming up and here nobody spares expense when it comes to declarations of love. One Reddit user shared their wedding costs, estimating between R800 and R1 500 per head for a 120-person event, with venue costs alone ranging from R35 000 to R120 000. Add in food, which can cost R350 to R500 per person, décor and photography, and the total balloons into the price of a small apartment. Education expenses bite into budgets Thanks to failing state education, spending on learning has also rocketed. StatsSA noted that education only accounts for 2.45% of total household consumption. ALSO READ: Repo rate cut no help for consumers on brink of financial disaster Yet, in real life, many families are spending far more than this. One Reddit user said that their family spends R10 000 a month on education-related expenses per child, just for decent schools. South Africans are big on takeaways and restaurant meals. Stats SA's 2023 report shows that takeaway and restaurant meals account for 3.6% of household expenditure, a higher percentage than some families spend on education. The rise of food delivery services have fuelled this trend. This is despite the cost of restaurant delivered meals being charged at a premium. Food delivery, fashion, and debt trap South Africa's high data costs are infamous and Independent Communications Authority of South Africa research last year showed that households spend between R300 and R900 per month on mobile services. Fashion eats money, too. Younger people are spending a large chunk of their income, sometimes 12-15%, on clothing, often financed through store accounts or credit. The need to show off expensive name brands burn wallets. According to BankServAfrica's 2023 survey, car instalments are the second highest debts consumers incur after home loans. People are overspending because they believe they are buying status. Credit can sink anyone when mismanaged. According to TransUnion's 2024 Credit Insights report, 41% of active credit users are over-indebted. NOW READ: Gambling addiction referrals rise 40% as billions spent on betting advertising
TimesLIVE
an hour ago
- TimesLIVE
The recalibration of the majority: it's not the size that matters
Smaller political parties, with the potential to earn between 10% and 15% of the vote, are set to play a crucial role in shaping the new South African governing majority in all spheres of government in the not-too-distant future at the 257 municipalities. Those with 20% and above will have the power to influence the cadence of coalition arrangements, empowering them to shape the future of South Africa's political landscape. The era of one dominant political party is fast becoming history. Unless there are drastic institutional changes in the ANC, which has been the historical dominant majority party for the past 30 years, the projections of it polling below 40% overall in the 2026 local government elections and below 30% in the national and provincial elections are not far-fetched. Yet for that not to happen, something else must come first: recognition that the glory days of the past three decades can only be resurrected by its commitment to be a party of South Africans, not its members. Consolidating a multiparty democratic order with diffuse nodes of influence would require political parties to raise a personality to hold these nodes together. It is no secret that the GNU, at its establishment and arguably to date, is held together by a consensus on President Cyril Ramaphosa as the personality around whom everyone wants to pivot. The fragility of the GNU is centred on the tolerance, accommodation and acceptance of Ramaphosa's unique consensus-seeking leadership style. The current coalition arrangements are based on the consensus of a nonracial establishment deep in the endeavour to create political stability that does not disrupt the post-1996 status quo or constitutional order. Political parties in parliament and wannabes outside the system will henceforth be beholden to the personalities they proffer as a leadership value proposition to the nation.
The Star
7 hours ago
- The Star
Joburg mayor blames DA-led coalition as city faces R24. 4bn wasteful spending crisis
Simon Majadibodu | Published 7 hours ago Joburg Mayor Dada Morero has blamed the previous DA-led administration for the city's ballooning unauthorised, irregular, fruitless and wasteful expenditure, which has reached R24.4 billion over the past year. Speaking at a media briefing on Thursday, Morero confirmed he had submitted a comprehensive financial recovery plan to Finance Minister Enoch Godongwana, who had given the City of Johannesburg 14 days to respond after raising alarm over its financial mismanagement. This comes after Auditor-General, Tsakani Maluleke, flagged serious governance failures, including poor financial controls, weak revenue collection and chronic underinvestment. The National Treasury has cautioned that failure to resolve the crisis could result in the withholding of national grants. Morero said he received the letter from Godongwana on July 30, 2025, outlining the minister's concern over the city's ongoing non-compliance with the Municipal Finance Management Act (MFMA), specifically relating to unauthorised and irregular expenditure. 'The Honourable Minister requested that I respond within 14 days. I can confirm that I have now submitted a comprehensive response on behalf of the City of Johannesburg,' Morero said. The response, he said, includes a full account of the issues behind the R23.6 billion in unauthorised, irregular, fruitless and wasteful expenditure as reported in the city's 2023–2024 financial statements. Morero, who has served as mayor since August 2022, again blamed the Democratic Alliance-led coalition, which governed the city between 2016 and 2021. He previously served as an MMC for Finance at the metro in 2023. 'Our beloved city endured a period of mismanagement and poor leadership under the DA-led coalition. The R23.6 billion is a cumulative figure that increased progressively over several years, largely unaddressed and not regularised as required by the MFMA,' he said. He broke down the R23.6 billion figure, which includes R13 billion (55%) in unauthorised expenditure, R9.9 billion (42%) in irregular expenditure, and R735 million (3%) in fruitless and wasteful expenditure. Morero said most of the unauthorised spending, comes from bulk purchases of electricity and water that exceeded the approved budget. 'These bulk purchases are driven by resident consumption as well as both technical and non-technical losses during service delivery,' he said. Irregular expenditure mainly arose from procurement processes that failed to comply with supply chain regulations. 'It's important to clarify that irregular or unauthorised expenditure doesn't necessarily mean that the goods or services weren't received. It points to non-compliance in procurement procedures,' he said. Morero said to address these issues, he implemented key interventions including an enhanced expenditure reduction strategy focused on investigations, consequence management, and regularisation of non-compliant spending in line with MFMA Section 32.2. He said he also re-established the city's disciplinary board for financial misconduct and initiated criminal proceedings where necessary. 'In February 2025, I approached President Cyril Ramaphosa for technical support through the Presidential Working Group,' Morero added. He said the city also established a 'War Room' and introduced a 'Bomb Squad' to oversee financial recovery and monitor service delivery progress weekly. These interventions, he claimed, are beginning to show results. 'As of June 30, 2025, R12.9 billion of the R23.6 billion has been regularised. The balance of R6.7 billion is under investigation. The remainder has been investigated and is now being processed by municipal committees,' he said. Morero said he expects a 'significant reduction' in irregular expenditure in the city's 2024–2025 annual financial statements. He said the disciplinary board has completed preliminary investigations into six matters totalling R535 million, with outcomes to be presented to the Council during its next ordinary sitting. On July 31, the Council approved 12 further matters for investigation, amounting to R2.5 billion. These relate to alleged financial misconduct and unresolved unauthorised expenditure. Morero also claimed there were improvements in revenue collection through the War Room initiative, with the city achieving an 87% collection rate between April and June 2025 - a 2.7% increase from the same period last year. He said the city is now targeting a sustainable daily revenue collection of R200 million. 'The impact of the Presidential Working Group and Bomb Squad is beginning to be visible through accelerated service delivery,' he said. He said a new board has been appointed to oversee municipal entities, while oversight through the Group Audit Committees and the Mayoral Committee is being strengthened. He added, 'Reducing unauthorised, irregular and fruitless expenditure is now a key performance indicator for senior managers. The disciplinary board will continue expediting investigations into allegations of financial misconduct.' [email protected] IOL Politics
