R1.5 billion headache for South Africa’s army

The South African National Defence Force (SANDF) is facing over R1.5 billion in contingent liabilities—a liability the entity may have to pay depending on the outcome of a future event, such as a court case.

This was outlined in a recent Parliamentary response by Defence and Military Veterans Minister Angie Motshekga to a question posed to her by Economic Freedom Fighters (EFF) MP, Vuyani Pambo.

According to the response, the contingent liabilities arise from various civil claims and mobile asset accidents, the majority of which stem from HR and labour-related claims.

As of 30 June 2024, the total number of contingent liabilities were:

This R1.55 billion in claims against the department is up from the R780.5 million recorded in the 2014/15 financial year.

It is important to note, however, that this contingent liability amount “does not necessarily reflect the amounts to which claimants are legally entitled, nor the amounts that are ultimately paid,” the government has previously said.

“Depending on the nature of a claim, the average amount of compensation granted is only a small fraction of the amount claimed,” it added.

Although the payouts are expected to be lower than the listed amount, payments in this regard could strain an already stressed military budget.

In July 2024, Motshekga outlined the Department of Defence’s R51.8 billion budget – down from the adjusted R52.4 billion in 2023/24.

Of this total budget, R2.6 billion is budgeted for obligations to Department of Public Works and Infrastructure for lease payments, assessment rates, refurbishment, maintenance and repairs and municipal services. Additionally, R1.4 billion to Armscor.

For 2025/26, the defence budget rises to R53.7 billion and for 2026/27 it increases to R56.2 billion, but considering inflation is over 5%, this represents a decline in real terms.

Defence expert Dean Wingrin told Defence Web that this budget is a “disaster for the SANDF and its abilities to carry out its missions.”

Wingrin said that defence spending is now about .7% of GDP, versus the international norm of 2% of GDP, putting strain on an overstretched SANDF that is carrying out deployments in the Democratic Republic of Congo, Mozambique, internally and on South Africa’s borders.

“I know South Africa is facing critical social issues, but then don’t deploy troops into harm’s way. Either support them or withdraw them,” Wingrin said of the SANDF’s external deployments.

While the R1.55 billion in claims against the department has increased over the past several years, this is not unique to the SANDF; other essential governmental departments have also been grappling with ballooning claims against them.

As an example, recklessness, negligence, and misconduct cases could cost the South African Police Service (SAPS) over R65.3 billion.

“The total number of delictual claims pending against the SAPS until the end of June 2024 is 43,954 in respect of alleged recklessness, negligence and misconduct cases,” said Police Minister Senzo Mchunu.

Comparing this to data provided in SAPS’ most recent annual report, this is over R273 million higher than the R65.08 billion recorded for the financial year ending March 2023.

This is substantially higher than the R20.6 billion attached in 2012, and R16.6 billion in 2011. 

Read: Bogus health claims bleeding South Africa dry – R30 billion under investigation