R1.3 billion irregular expenditure scandal leads to Gauteng welfare sector collapse

Issued by Alan Fuchs MPL – DA Gauteng Member of Standing Committee on Public Accounts (SCOPA)
22 Apr 2025 in Press Statements

The lack of adherence to legislation and regulation has resulted in irregular expenditure within the Gauteng Department of Social Development ballooning to more than R1.3 billion, leaving vulnerable residents without much-needed welfare services.

Of this amount, R210 million additional irregular expenditure was generated between April and December 2024.

Despite repeated Auditor-General warnings, no investigations have been launched, and no one has been held accountable. Officials and politicians act as though the law doesn’t apply to them.

Premier Panyaza Lesufi and Social Development MEC Faith Mazibuko have failed to provide oversight and appear to be protecting cadres by sitting on forensic reports that could expose widespread corruption.

The department’s bungling of the allocation of funds to Non-Profit Organisations (NPOs) has had an ongoing impact on the quality of care for the vulnerable in Gauteng. Many NPOs were forced to close due to non-payment. As a result, hundreds of people, including children, the elderly, and the disabled, have been left without essential care. Echoes of Life Esidimeni can be heard.

DA Gauteng Member of the Provincial Legislature, Refiloe Nt’sekhe, has tabled a motion for an inquiry into the department’s failures. This has not yet been debated as there appears to be a stalling tactic to protect cadres.

Under a DA-led Gauteng Provincial Government, oversight would be strengthened, legislation adhered to, corruption tackled, and Auditor-General’s recommendations followed.

Gauteng deserves ethical leadership that cares, acts, and delivers, especially for the vulnerable.