R1.38 trillion of taxpayer funds squandered in just five years

National, provincial, and municipal government departments and entities collectively reported more than R1.377 trillion in fruitless, wasteful, irregular, and unauthorised expenditure between the 2019/20 and 2023/24 financial years.

Specifically, municipalities and municipal entities accounted for most squandered spending, reporting R1.086 trillion over the period. National departments and entities reported approximately R291 billion.

The figures were provided by the Minister of Finance, Enoch Godongwana, in a recent parliamentary response to a question from ActionSA MP Alan Beesley.

The answers cover three main categories of expenditure: fruitless and wasteful expenditure, irregular expenditure, and unauthorised expenditure.

These expenditures reflect money spent inefficiently, unlawfully, or in ways that could have been avoided with proper management.

At the national level, fruitless and wasteful expenditure by departments ranged from R162 million to R432 million annually, while national public entities reported even higher figures, peaking at R3 billion in 2019/20.

Irregular expenditure at national departments reached R11.6 billion in 2021/22, with public entities reporting R127 billion in 2020/21.

Unauthorised expenditure at national departments rose sharply, from R316 million in 2019/20 to R4.9 billion in 2023/24.

The total five-year expenditure for national departments and entities alone amounts to roughly R291 billion.

Municipalities and municipal entities accounted for the bulk of spending, reporting R1.086 trillion over the same period.

Fruitless and wasteful expenditure climbed from R4 billion in 2019/20 to R19 billion in 2022/23 before dropping to R17 billion in 2023/24.

Irregular expenditure steadily increased, from R74 billion in 2019/20 to R137 billion in 2023/24.

Unauthorised expenditure peaked at R107 billion in 2021/22 and stood at R81 billion in 2023/24.

Unacceptable figures

Beesley said that unless stricter oversight, enhanced auditing, and tangible consequences for non-compliance are implemented, public trust and government efficiency will continue to suffer.

“It is clear that there is no accountability and consequence for public officials. Until incompetent and corrupt officials are either fired or jailed, nothing will change,” Beesley told Newsday.

“Everything rises and falls on leadership, and sadly competent and honest leadership is missing with most state departments and entities.”

Godongwana emphasised that accounting officers and authorities are required to submit annual financial statements to the Auditor-General and relevant treasury departments.

“Yet the amounts of unauthorised and irregular spending remain unacceptably high,” he said, highlighting weaknesses in oversight and enforcement.

Provincial departments and public entities report directly to their provincial treasuries, with figures not included in the national summary.

However, these expenditures are expected to follow similar trends, contributing further to the overall financial mismanagement across government.

The Auditor General has warned that the persistent scale of irregular and unauthorised spending highlights both systemic and cultural weaknesses in public financial management.

While South Africa’s Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA) set strict reporting and compliance requirements, enforcement remains inconsistent.

The massive sums involved have direct implications for service delivery.

The National Treasury and Auditor General’s consolidated reports provide ongoing snapshots of fiscal accountability, but the data suggest that corrective measures are not keeping pace with violations.

Municipalities will submit their 2024/25 annual financial statements by 31 August 2025, offering a new benchmark to assess whether historical patterns of waste and mismanagement persist or if reforms are beginning to take effect.

Godongwana has acknowledged South Africa’s R1.377 trillion public sector waste and outlined steps to curb inefficiency.

In his 2025 budget, he proposed a comprehensive spending review to cut unproductive projects, audits to root out issues like ghost employees, and budget adjustments to save R40 billion without raising VAT.

He said the government also aims to strengthen institutions and improve governance, focusing on better management and oversight of public funds.

Success, however, will depend on rigorous implementation and sustained political will, with the public and business sectors closely watching for tangible improvements in service delivery.

R1.38 trillion in perspective

To put this into perspective, proper allocation and use of these funds could have transformed key public services across the country.

In healthcare, the Department of Health’s budget for 2023/24 stood at R58.6 billion, projected to rise to R66.4 billion by 2026/27.

The lost funds could have funded the national health budget for two decades, allowing for the construction of hospitals, procurement of equipment, and recruitment of additional staff.

Similarly, in education, the Department of Basic Education’s annual budget of R50.1 billion could have been sustained for over 27 years, enabling new schools, better learning materials, and more educators.

Housing, another critical sector, could have seen 1.76 million low-cost homes built, addressing a significant portion of South Africa’s backlog.

Meanwhile, R1.377 trillion could have financed over 59,000 large-scale water projects, potentially improving nationwide access to safe water and sanitation.

In energy, the same amount could have funded Eskom’s debt relief for more than 16 years, helping to stabilise electricity supply and infrastructure development.