DA member of the Provincial Legislature (MPL), Freddy Sonakile, raised concerns over significant underspending by key departments during the 2024/25 financial year. 

According to Sonakile, despite the pressing needs of communities, departments such as Agriculture and Rural Development, and Economic Development, Environment, Conservation and Tourism, recorded spending levels below 95%, collectively contributing to R143 million in under-expenditure.

Sonakile further stated that the total underspending amounted to R383 million, stating that Premier Lazarus Mokgosi had revealed that several departments spent between 98% and 99% of their allocated budget for the 2024/25 financial year. 

He said Mokgosi acknowledged the severity of the underspending and committed to investigating the causes and implementing appropriate consequences. It’s understood that Mokgosi further indicated in answer to a follow-up question that the review will be completed within a month. 

He also confirmed that the province had lost R294 million in conditional grants, of which only R172 million had been submitted for rollover consideration by various departments.

However, the Office of the Premier has rejected the notion that the full R383 million would be forfeited to National Treasury. 

Premier spokesperson, Sello Taitai, clarified the situation, indicating that the under-expenditure of R383 million, which is made up of R176 million of the equitable share, will be retained by the province.

Taitai highlighted that the province had achieved a significantly improved spending rate compared to previous years. 

“As per the 2024/25 preliminary audit outcomes, 99.29% of its R54.2 billion was spent by the government. This translates to a total expenditure of R53.9 billion,” he explained.

He further noted that the remaining R207 million will be subjected to rollover processes for the 2025/26 financial year. “Already, National Treasury has approved R172 million, which will be re-appropriated through the November adjustment budget,” Taitai confirmed.

Taitai also underscored that the retained and rolled-over funds would be redirected to infrastructure projects aimed at addressing service delivery backlogs and promoting socio-economic development across the province.  

“Therefore, there is no R383 million rand which is going to be returned to the National Treasury as alleged by some in the mainstream and social media platforms.” 

OFM News/Kekeletso Mosebetsi cg