Where’s the Accountability for Government Waste?

Treasury’s temporary R10 billion fuel levy relief will ease pressure on consumers, but its own findings on infrastructure failures and municipal overspending show why South Africans need more than short-term fixes.

• Fuel relief: Petrol levies will be reduced by R1.50 per litre and diesel by R3 per litre from 4 November, with reduced relief continuing until 5 January 2027.
• Infrastructure failures: Treasury reviewed R887 billion in infrastructure grants and found that projects were often delayed, incomplete or failed to deliver their intended benefits. OUTA wants to know who is being held accountable.
• GBV funding: An additional R4.14 billion has been allocated to combat gender-based violence, but serious forensic delays continue to undermine investigations and justice for victims.
• Municipal spending: Treasury says many municipalities spend too much on running costs and too little on infrastructure. OUTA questions City Power’s reliance on a multibillion-rand municipal loan to meet its Eskom obligations.
• Accountability: OUTA wants stronger procurement oversight, transparency on commissions of inquiry and consequences for financial misconduct.

The Organisation Undoing Tax Abuse (OUTA) says the temporary fuel levy relief announced in Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS) will provide some respite to South Africans struggling with the cost of living. However, government must show the same urgency in addressing wasteful expenditure and financial mismanagement.

From 4 November to 1 December 2026, petrol levies will be reduced by R1.50 per litre and diesel by R3 per litre.

These reductions will decrease to R1 and R1.50 respectively until 5 January 2027.

The relief will reduce the tax component of fuel prices, although other factors will determine the final pump price.

Lower diesel costs could also ease pressure on transport, agriculture and food prices.

“South Africans are feeling the pressure every time they fill their tanks, buy groceries or pay for transport. This relief will help, but only temporarily. Government needs to examine the long-term tax burden on fuel while getting serious about the billions lost through waste and poor financial management, including at institutions such as the Road Accident Fund (RAF),” says OUTA CEO Wayne Duvenage.

The R10 billion relief will be funded through money previously transferred to the Central Energy Fund.

OUTA believes Treasury should review the fuel levy structure to identify opportunities for sustainable relief without compromising essential infrastructure funding.

Spending billions without delivering results
While government debt has stabilised at 78.4% of GDP, Treasury has revised its economic growth forecast for 2026 downwards from 1.6% to 1.2%. Improved fiscal figures mean little if South Africans continue experiencing unreliable services and deteriorating infrastructure.

Treasury’s review of R887 billion transferred to provinces and municipalities through infrastructure conditional grants between 2017/18 and 2023/24 found that projects were often delayed, incomplete or failed to deliver their intended benefits.

While this does not mean the entire R887 billion was wasted, Treasury’s findings raise serious questions about value for money and the lack of visible consequences for failed projects.

“Spending the money is not the same as doing the job. Treasury must tell South Africans which projects failed, how much was spent, who was responsible and what action has been taken. We cannot keep identifying these failures without holding anyone accountable,” says Duvenage.

OUTA wants the full review published, including details of underperforming projects, expenditure, reasons for failure and corrective action taken.

GBV funding means little without functioning investigations
The MTBPS allocates an additional R4.14 billion towards tackling gender-based violence and femicide (GBVF), including more social workers, forensic and investigative capacity, sexual offences courts and Thuthuzela Care Centres.

While additional funding is desperately needed, OUTA questions how effective these interventions will be when the systems meant to deliver justice are already failing victims.

According to findings presented to Parliament by the DNA Board on 16 October 2026, only 1.5% of DNA profiles met the 30-day turnaround target, while nearly 166,000 DNA reference samples were still awaiting administrative processing at SAPS.

Delays in forensic processing can have devastating consequences for rape and child sexual abuse investigations, leaving victims and their families waiting months, sometimes years, for justice. Despite repeated commitments to reform since 2018, government has failed to deliver the improvements needed.

“How can government claim to be serious about fighting gender-based violence when only 1.5% of DNA profiles meet the required turnaround target? We cannot keep allocating billions while the systems meant to protect victims continue to fail them. OUTA wants clear targets, transparent reporting on expenditure and measurable improvements in forensic processing, investigations and prosecutions. Victims deserve justice, not another round of promises,” says Duvenage.

Municipalities must account for the money they receive
The MTBPS allocates an additional R21.8 billion to the local government equitable share and R13.4 billion through the general fuel levy allocation to metropolitan municipalities.

Yet Treasury found that most municipalities have sufficient funding for day-to-day operations but spend too much on running costs, leaving too little for infrastructure maintenance.

“When municipalities collect money for electricity and water but fail to maintain those networks, residents pay twice. First through their municipal bills and then through the cost and disruption of failing infrastructure,” says OUTA CEO Wayne Duvenage.

OUTA continues to push for municipal electricity revenue to be protected and reinvested in infrastructure. Its ongoing scrutiny of City Power has raised further concerns about the utility’s outstanding Eskom debt and its reliance on municipal borrowing to meet payment obligations, despite previous claims that the debt had been settled.

Treasury has also suspended equitable share transfers to 69 municipalities for failing to pay creditors. OUTA wants stronger intervention against persistent financial mismanagement, without leaving residents to suffer the consequences.

With local government elections approaching on 4 November, voters should demand answers about how their municipalities have spent public money and what they have delivered.

Financial accountability cannot remain a paper exercise
OUTA will examine the proposed amendments to the Public Finance Management Act and Municipal Finance Management Act, which aim to strengthen financial oversight and the recovery of losses.

The organisation also wants procurement reform to prioritise transparent, publicly accessible tender processes, particularly following the Constitutional Court’s invalidation of the Public Procurement Act.

“South Africa does not suffer from a shortage of laws. We suffer from a shortage of consequences when those laws are broken. Stronger legislation means little if officials continue wasting public money without being held accountable,” says Duvenage.

Treasury has allocated R516 million to the Madlanga, Khampepe and Nkabinde commissions of inquiry and R2.2 billion over the medium term to strengthen judicial independence.

OUTA believes the Madlanga Commission should continue its work, with consideration given to expanding its mandate to investigate alleged criminal activity and corruption across policing services nationwide.

OUTA also wants transparent reporting on the costs and timelines of these commissions, publication of their findings and evidence that recommendations lead to appropriate investigations, prosecutions and the recovery of public funds.

The additional judicial funding must strengthen institutional independence and the capacity to deal with complex cases.

Less money for skills development demands better oversight
The MTBPS reflects a R286.8 million reduction in transfers to Sector Education and Training Authorities (SETAs) due to lower-than-anticipated skills development levy receipts.

While economic pressures may explain the reduced collections, longstanding governance concerns continue to undermine confidence in the sector.

OUTA is investigating governance and spending concerns within SETAs and believes every rand allocated to skills development must deliver credible training opportunities and improved employment prospects.

Cut waste before cutting services
Treasury has identified R38.1 billion in further savings over the medium term, including measures to reduce social grant fraud and inefficiencies in human settlements funding.

OUTA questions why it has taken so long to address problems that have been repeatedly identified over many years. These savings must target fraud, corruption and ineffective expenditure without penalising legitimate beneficiaries or undermining essential services.

The proposed fiscal anchor could strengthen financial discipline, but it must be accompanied by transparent reporting, independent scrutiny and effective parliamentary oversight.

“South Africans are being offered a little relief at the pumps, but they are still paying a heavy price for government waste and inefficiency,” says Duvenage.

“Every rand wasted is money that could have maintained infrastructure, improved services or eased the burden on taxpayers. Government must demonstrate that it is as serious about stopping waste as it is about balancing its books.”

OUTA will continue investigating questionable procurement, challenging financial mismanagement and advocating for stronger enforcement and accountability. Taxpayers deserve to know not only where their money goes, but what it achieves and who is held responsible when it is wasted.