Failing ANC’s R100 billion irregular, fruitless and wasteful expenditure could fund job-seekers

Issued by Geordin Hill-Lewis MP – DA Team One South Africa Spokesperson on Access to Jobs
19 Oct 2018 in News

The total balance of irregular, fruitless and wasteful expenditure by ANC national departments and state entities has increased to R100.9 billion.

This is a staggering sum of money. To put it in perspective, the R100.9 billion that was wasted would be enough to provide a jobseeker grant of R875 a month to every single unemployed person. Or a once-off cash grant of R10 500 for each unemployed person in the country. That is not to say the money could or should be used for these purposes. But it does put in perspective the scale of the loss, to consider how this sum could have improved the lives of all 10 million unemployed people.

The R4.1 billion that was lost to fruitless and wasteful expenditure in 2017/8 is enough to fund the salaries of over 22 000 police officers or 21 000 nurses.

It should be a national scandal that wanton waste on this scale has been allowed to take place by this failed ANC government.

Earlier this month, the DA analysed the annual reports of national departments and selected entities that had been tabled in Parliament. This revealed irregular expenditure of R72.6 billion and fruitless and wasteful expenditure of another R3 billion. However, serial mismanagement offenders SAA, SA Express and Denel had not tabled their reports at the time. The DA cautioned that the total was likely to increase substantially.

Prasa has now tabled their annual report, and the financial results are truly shocking:

  • Irregular expenditure: R24.2 billion
  • Fruitless and wasteful expenditure: R1 billion
  • Net loss for the year: R925 million

The Auditor-General (A-G) issued the entity with a qualified audit opinion, due to the large amount of dodgy spending, and the unclear accounting of passenger fares. Despite spending all this money, the entity achieved only 21% of its performance targets.

Prasa also joins the list of departments and entities that the A-G has expressed serious uncertainty over their ability to remain a going concern. There are now eight entities and one department at risk of financial collapse, in addition to the commercially insolvent SABC.

There is no excuse for this massive maladministration, particularly in fruitless and wasteful spending – this money is spent with absolutely no gain for the public. The ANC continues to pour vast sums of money down the drain at State-Owned Enterprises (SOEs).

Prasa’s results are a slap in the face to all those commuters who queue for hours attempting to catch trains that never arrive. With fuel prices sky-rocketing and 9.6 million unemployed, the neglect of the train system that provides vital links to jobs clearly shows that the ANC does not care about the daily struggles of South Africans.

The DA has shown that whenever we take over failing ANC governments, we clean up the administration and improve service delivery. South Africans have an opportunity in 2019 to choose a party that stands for One South Africa for All – not just the cronies of the ANC elite.