Government departments rack up more than R18,5bn in overspending

The standing committee on public accounts (Scopa) has heard how national departments racked up more than R18,5 billion in unauthorised expenditures over the years.

The department of cooperative governance, department of communication and information system, department of water and sanitation, and department of telecommunications and digital technologies made their presentations this week.

According to the National Treasury, the overspending occurred in 13 different government departments and entities over the years, with five entities still being processed.

Overspending over the years

The biggest overspender was the Department of Social Development, overspending by R15,1 billion due to President Cyril Ramaphosa’s declaration of a national state of disaster during to the Covid-19 pandemic.

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The Department of Transport overspent by R1,34 billion between 2013 and 2016 on the implementation of the eNatis system and the department of public service and administration overspent R8.8 million.

Other overspending included a R120 million for Statistics SA due to previous budget cuts that led to overspending and R3,7 million by the Government Communication and Information System for the state funeral of former president Nelson Mandela in 2013.

Current financial climate

Public service and administration minister Noxolo Kiviet said unauthorised spending was worsening the current financial climate.

“This wouldn’t recur because the current arrangement is that anything outside of what is prescribed, that is, any deviation by any executive authority, must go through the ministry of public service.

“We do indicate to departments where checks and balances are there must be a budget for what you are requesting, and if there is a deviation, there must be reasons justifiable enough for that to happen,” she said.

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Kiviet said government must deal with the matter.

“At times, there is no amount of regulation that will substitute the political will to do the right thing. Therefore, in as much as this is administrative, it also [requires] the political will to do the correct thing.

“I would like to appeal that we need to have these matters (reports on unauthorised expenditure) off our table, whichever way we decide on them. It can’t be correct to have a matter hanging in the books for 10 years. It’s just not right,” said Kiviet.