Against the backdrop of Statistics South Africa poverty trends pointing to about 23.2 million people (37.9% of the population) living below the lower-bound poverty line, with an influx of the poor queuing for assistance at SA Social Security Agency (Sassa) offices, the department of social development (DSD) has underspent R4.879 billion.
Presenting the 2025/26 annual performance report this week before the parliamentary portfolio committee on social development, senior DSD officials told MPs that the underspending relating to old age, disability and child support grants was due to “lower take-up rates than the budgeted numbers”.
MPs found the explanation to be indicative of gross inefficiencies in the management of government grants, with the historical underspending having become successive — R1.88bn in 2020-21, R1.86bn in 2021-22, R6.13bn in 2022-23, R1.593bn in 2023-24, R2.667bn in 2024-25) and R4.879bn in 2025-26.
“Your financial report talks about a R4.879bn saving, something I find horrible because we should not be saving money that should be made available for spending,” DA MP Samantha Jane Graham-Maré said. “What happens to the money? Is it directed to other programmes? Or does it get rolled over?”
ANC MP Altia Sthembile Hlongo said: “Concerns have been raised about the underspending of R4.879bn and the impact of this on vulnerable citizens.”
DSD CFO Thandeka Gloria Ngcobo said the unspent funds must be surrendered to Treasury before the end of the November deadline.
“The money is specifically and exclusively appropriated to be utilised only for the purpose it was specified for — payments of grants.
“Unless there is another approval by Parliament to say the money can be used during an adjustment estimate, the money goes back to the National Treasury,” Ngcobo said.
Responding to a concern that the DSD’s top brass served in acting capacities, which MPs said affected performance and decision-making, Social Development Minister Dina Pule gave Parliament certainty that the post of the director-general would be filled by early next year.
“As a department, we have engaged with the president and we are awaiting delegations from the president before getting the job advertised. We hope that by 1 April 2027, we will have appointed the DG. But it should not happen that the DDGs and DG cannot do their jobs because of acting,” Pule said.
This month, Raphaahle Ramokgopa was appointed acting DG — a development former DSD spokesperson Lumka Oliphant supported.
She said that while the newly appointed acting DG was a capable, intelligent and seasoned executive, “a closer look at why she is always easily uprooted from her position at Sassa whenever DSD and its entities need rescuing, might be something that needs a closer look”.
“The minister … has the difficult job of cleaning the mess created by her predecessor, Sisisi Tolashe. She will need … the right people around her who will be honest with her and not only be concerned about covering their tracks … Tolashe would not have been able to do what she did without the assistance of department officials,” Oliphant said.
During her tenure at the DSD, Oliphant and Tolashe were engaged in a public feud after Oliphant’s dismissal from the department.
Oliphant denied leaking information regarding Tolashe’s R3 million New York trip, claiming her dismissal was a politically-motivated form of victimisation, linked to her past association with former minister Bathabile Dlamini.
Among cases cited by the auditor general as fruitless expenditure during the 2025-26 audit, was the irregular appointment of Tolashe’s former personal assistant Lesedi Mabiletja, at a cost of R3.337m.
“It is promising to hear that the department is looking at recovering the money that was paid to … Mabiletja, who did not qualify to serve in the former minister’s office,” Oliphant said.
“What has not come out is who will be responsible for paying back the money and how it will be recovered, considering that the former DG is not in the system. Even Miss Mabiletja is not in the system and was found to have committed fraud by the PSC … Everyone seems to be mum on a possible criminal investigation.”
Former DG Peter Netshipale’s five-year contract, valued at R2.2m annually, was ruled irregular as Cabinet had approved only a one-year term. “If you looked at DSD reasons for underspending, they said it was for unfilled 22 prioritised posts. I can tell you now that my post was not part of the priority posts but it was filled quickly. You look at the executive director inspectorate post — it still has not been filled for years.”
Oliphant’s deadline for the submission of closing arguments in her dismissal case is set for Friday.