{"id":814138,"date":"2025-02-28T07:00:00","date_gmt":"2025-02-28T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=814138"},"modified":"2025-02-27T16:10:36","modified_gmt":"2025-02-27T14:10:36","slug":"taxpayers-kiss-billions-goodbye","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/814138\/taxpayers-kiss-billions-goodbye\/","title":{"rendered":"Taxpayers kiss billions goodbye"},"content":{"rendered":"\n
As the government continues to bemoan “serious cash crunches,” national departments recorded nearly R8 billion in unauthorised, irregular, fruitless and wasteful expenditure in the 2023\/24 financial year alone.<\/p>\n\n\n\n
Over half of this came from the Department of Defence.<\/p>\n\n\n\n
This is according to information provided by Finance Minister Enoch Godongwana in a written parliamentary response to MK Party MP Nhlanhla Gcwabaza.<\/p>\n\n\n\n
Godongwana said that in the 2023\/24, national departments recorded:<\/p>\n\n\n\n
\n
R4,928,500,000<\/strong> in unauthorised expenditure;<\/li>\n\n\n\n
R2,852,248,000<\/strong> in irregular expenditure; and<\/li>\n\n\n\n
R160,520,000<\/strong> in fruitless and wasteful expenditure.<\/li>\n<\/ul>\n\n\n\n
Very broadly, unauthorised expenditure refers to spending that exceeds the approved budget or is used for unapproved purposes. <\/p>\n\n\n\n
Irregular expenditure occurs when public funds are spent without following procurement regulations, policies, or legal requirements. <\/p>\n\n\n\n
Fruitless and wasteful expenditure is spending that was made in vain and could have been avoided with proper financial management.<\/p>\n\n\n\n
Godongwana said that government is committed to addressing financial mismanagement, stating that \u201caccounting officers and authorities are empowered to take disciplinary action against officials responsible for unauthorized, irregular, and wasteful expenditure.\u201d<\/p>\n\n\n\n
The Public Finance Management Act (PFMA) mandates that disciplinary steps be taken against those who permit such expenditures, with details of actions taken recorded in annual reports.<\/p>\n\n\n\n
“Information related to disciplinary action instituted by accounting officers and accounting authorities can be found in the annual reports of those institutions,” said Godongwana.<\/p>\n\n\n\n
Additionally, National Treasury Instruction 4 of 2022\/2023 outlines strict compliance and reporting requirements, including mandatory investigations and determination tests. <\/p>\n\n\n\n
The minister added that \u201cunauthorised expenditure must be approved in accordance with section 34 of the PFMA, while irregular expenditure may be considered for condonation.\u201d<\/p>\n\n\n\n
Biggest culprits<\/h2>\n\n\n\n
Looking at some of the biggest culprits of unauthorised expenditure<\/strong>, five national departments contribute over 99%<\/strong> of the total.<\/p>\n\n\n\n
These include:<\/p>\n\n\n\n
\n
Department of Defence<\/strong>: R3,373,700,000 (largest contributor, 68.5% of total unauthorised expenditure)<\/li>\n\n\n\n
Department of Correctional Services<\/strong>: R614,300,000<\/li>\n\n\n\n
Department of International Relations and Co-operation<\/strong>: R435,600,000<\/li>\n\n\n\n
Department of Justice and Constitutional Development<\/strong>: R291,800,000<\/li>\n\n\n\n
Statistics South Africa<\/strong>: R128,300,000<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Untitled-design-8.png\")
<\/a><\/figure>\n\n\n\n