The Department of Social Development in South Africa has underspent R4.879 billion in the 2025/26 financial year, according to its annual performance report presented to the parliamentary portfolio committee on social development. The underspending is attributed to lower take-up rates of old age, disability, and child support grants than budgeted for. This revelation comes as 23.2 million people, or 37.9% of the population, live below the lower-bound poverty line.
The department's underspending has become a recurring issue, with historical underspending figures including R1.88 billion in 2020-21, R1.86 billion in 2021-22, R6.13 billion in 2022-23, R1.593 billion in 2023-24, R2.667 billion in 2024-25, and R4.879 billion in 2025-26. MPs have expressed concerns about the impact of this underspending on vulnerable citizens, with many queuing for assistance at SA Social Security Agency offices.
The DA's Samantha Jane Graham-Maré described the R4.879 billion saving as "horrible" and questioned what happens to the unspent funds, whether they are directed to other programs or rolled over. ANC MP Altia Sthembile Hlongo also raised concerns about the underspending and its impact on vulnerable citizens. The department's CFO, Thandeka Gloria Ngcobo, stated that the unspent funds must be surrendered to Treasury before the end of November.
The department's top brass has been serving in acting capacities, which MPs believe affects performance and decision-making. Social Development Minister Dina Pule assured Parliament that the post of director-general would be filled by early next year. Raphaahle Ramokgopa was recently appointed acting DG, a development supported by former DSD spokesperson Lumka Oliphant.
Oliphant, who had a public feud with former minister Sisisi Tolashe, supported Ramokgopa's appointment but raised concerns about her past experiences. Oliphant was dismissed from the department and claimed it was a politically motivated form of victimization linked to her past association with former minister Bathabile Dlamini.
The auditor general cited several cases of fruitless expenditure during the 2025-26 audit, including the irregular appointment of Tolashe's former personal assistant Lesedi Mabiletja at a cost of R3.337 million. Oliphant welcomed the department's efforts to recover the money paid to Mabiletja, who did not qualify to serve in the former minister's office.
The department faces challenges in filling key positions, with 22 prioritized posts left unfilled. Former DG Peter Netshipale's five-year contract was ruled irregular as Cabinet had approved only a one-year term. Oliphant also raised concerns about the lack of progress in investigating and recovering funds lost due to irregular appointments and expenditure.
Key points
- The Department of Social Development underspent R4.879 billion due to lower take-up rates of grants.
- MPs have expressed concerns about the impact of underspending on vulnerable citizens.
- The department's top brass has been serving in acting capacities, affecting performance and decision-making.
