South Africa’s R294 billion government department in trouble

The Auditor General of South Africa (AGSA) has downgraded the audit opinion for the Department of Social Development from an unqualified opinion with findings to a qualified audit with findings.

During the department’s parliamentary briefing, the Auditor General said that the entities in the department’s portfolio, including the South African Social Services Agency (SASSA) and the National Development Agency, have shown no improvement. 

“Swift action was not taken to address the prior year’s audit findings, resulting in a recurrence of issues from the previous year. The management of grants within Sassa and the department remains a significant challenge,” AGSA said. 

Problems flagged by the Auditor General include persistent irregular expenditure, vacant posts, and weak internal controls. 

The Department’s legal mandate is to protect vulnerable citizens, reduce poverty, and foster social cohesion. 

SASSA is responsible for administering social grants, which currently support approximately 45% of the South African population, at a cost of R267 billion for the year ending in March 2025. 

Since its 2005 establishment, SASSA has faced challenges including a 2014 invalid R10 billion contract, a 2017 payment crisis, illegal grant deductions, rural logistical issues, digital transformation struggles during the COVID-19 SRD rollout, ongoing fraud, and persistent beneficiary complaints over inefficiencies.

Despite this turbulence, SASSA was the only entity in the Department to receive an unqualified audit opinion.

The Department of Social Development is allocated a budget of R294 billion for the 2025/2026 financial year.

However, the department has been plagued by recent scandals relating to its employment and spending. 

Sliding into scandal

MPs noted multiple irregular appointments, including that of a 22-year-old chief of staff, which Minister Tolashe said “betrayed her” by hiring further hiring extra, irregular employees who were hired with falsified CVs. 

Chairperson of the board of the NDA, Ruth Bhengu was removed and Chief Director of Communication for the department, Lumka Oliphant was also suspended.

Oliphant took to the media following her suspension to say she was suspended because the department suspected she leaked information about a R3 million trip the department took to New York City.

The trip was taken by department officials and an NPO officer to attend a commission on women’s rights.

The department also gave a presentation on the necessity of the New York event, which was an annual commission attended by over 40 countries. 

MPs, however, remained concerned that the department did not illustrate any proof that it had attempted to make economical choices, and did not provide a cost breakdown for each official. 

Oliphant, at the time of her suspension, said that there was serious mismanagement at SASSA, resulting in a multi-billion rand finding from the Auditor General.

Allegations have also been made against Minister Sisisi Tolashe for a reported romantic relationship with her special advisor. 

The Daily Maverick reported how the relationship between the 65-year-old minister and her 32-year-old special adviser is allegedly shielding him from disciplinary proceedings.

The United Democratic Movement (UDM) said that this is not the first time the Department has been brough to disrepute. 

“Former Minister Bathabile Dlamini left behind a trail of corruption, negligence and constitutional violations. She presided over the 2017 social grants crisis that nearly collapsed SASSA,” the party said. 

However, the UDM said that the latest report indicates that the country is witnessing a “Dlamini 2.0.”

The party added that the department’s dependency on the collapsing South African Post Office illustrates “the state’s failure to separate financial operations from logistical ruin.”

Minister says concrete steps initiated

“Behind every scandal is a pensioner who sleeps hungry, a child whose grant is delayed, and a family whose only income disappears in bureaucratic confusion. The DSD has lost its moral compass,” UDM said. 

Minister Toalshe responded to these concerns, saying that the Department has “already initiated concrete steps to strengthen its control environment and ensure alignment with financial and reporting standards.”

She said that the areas identified relate mainly to dependencies with other institutions and limited systems to identify ineligible grant beneficiaries, as well as incomplete supporting documents for certain transactions. 

“These challenges are being addressed through structured interventions,” the minister promised. 

The department is instituting a comprehensive audit intervention framework. On the irregular appointments, Tolashe said that some employees and government officials were removed because the department has “zero tolerance for breaches of procedure.”

“The department has acted decisively to safeguard the public interest and restore confidence in its governance processes,” Tolashe said. 

Minister Tolashe highlighted the department’s achievements during the year, with social assistance extending to 28 million individuals.