Challenges in the Department of Defence's fight against wasteful expenditure

The Department of Defence (DOD) has revealed the obstacles it encounters when investigating irregular, unproductive, and wasteful expenditure (IFWE). Currently, the DOD is handling 63 concluded cases, 72 unfinished cases, and 125 cases still pending. The Directorate for Priority Crime Investigation (DPCI), commonly referred to as the Hawks, Special Investigations Unit (SIU), and the Public Protector, is responsible for investigating approximately R1.7 billion in cases.

The DOD recently shared a progress report about IFWE with the Portfolio Committee on Defence and Military Veterans. They also discussed the advancement of Boards of Inquiry (BOIs). Deputy Director Maria Skosana informed that six incidents, valued at R106 million, have been examined by the National Treasury, and the Department's financial records were up-to-date with condonement for the 2025/2026 financial year.

Skosana detailed that the DOD has roughly 78 procurement units spread across the country, encompassing the Army, Airforce, Military Health Services, and the Logistics Division, which operates two significant procurement centers in Pretoria and Cape Town. When irregularities are detected by the Department or the Auditor-General, a board of inquiry is convened to examine the cause of the irregularity and propose recommendations based on the findings.

To expedite investigations and finalize outstanding cases, five members were appointed as of August 1, 2026, to assist in clearing the backlog and enhance the turnaround time for consequence management. Nine members faced disciplinary action (reprimands) for procurement-related irregularities, with a combined value of around R5.45 million.

These cases involve non-compliance with supply chain management regulations, such as irregular bidding processes, tax non-compliance, and improper procurement practices. Eleven staff members are presently involved in court proceedings for fraud and corruption cases connected to procurement, with a total value of roughly R273.5 million.

Eleven members have been arrested for financial misconduct cases. Skosana explained that limited investigation capacity is an issue, as members handle inquiries in addition to their primary responsibilities, resulting in competing priorities and delays. Another challenge is missing or unavailable documentation; procurement files and supporting materials may be missing, archived, or held by other investigative authorities.

Historical findings often lack procurement file references and sufficient supporting information. Older cases are difficult to investigate due to the absence of records and officials who may have transferred or left the organization. Skosana acknowledged that while challenges persist, the progress illustrates a clear transition from identifying issues to actively resolving them.

The increase in investigations, enhanced finalization of inquiries, reduction in the uninvestigated backlog, and improved investigative capacity demonstrate the DOD's dedication to accountability, consequence management, and sound financial governance. Skosana emphasized that the focus is not solely on closing historical cases but on strengthening the system that led to these weaknesses.

By implementing enhanced oversight, preventative controls, and dedicated investigation capacity, they are fostering a culture where non-compliance is identified early, investigated decisively, and concluded appropriately.