The National Treasury has revealed in parliament that the Department of Social Development incurred an unauthorised expenditure of R15 billion during the Covid-19 pandemic.
Standing Committee on Public Accounts (Scopa) was receiving reports from the National Treasury on unauthorised expenditure in various departments.
“Unauthorised expenditure of R15.134 billion in 2019/20 due to the President’s declaration of a National State of Disaster due to Covid-19 global pandemic: announcement of a 21-day national lockdown from 26 March to 16 April included announcement by President to pay grants early (26 March as opposed to 1 April 2020) R15.134 billion was paid towards the April (2020/21) social grants for which it was budgeted. Early payment of social grants: April 2020 (2020/21) payments made in March 2020 (2019/20) resulting in over-spending in 2019/20 budget. Resulted in overspending on main division of vote (Programme 2: Social Assistance) and vote. Mitigating actions and steps taken to prevent unauthorised expenditure. Not a function of negligence nor poor planning but emergency response. Funding for grants was allocated in 2020/21. These social grants payments were accounted for in the 2019/20 financial year and financial statements,” read the National Treasury report.
Scopa chairperson Mkhuleko Hlengwa said that departments must be held accountable for the money they spent without authorisation.
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