South Africa: Defence Cash Crisis Puts Department At Risk of Collapse
[Scrolla] The Defence Department expects to overspend its employee compensation budget by R3.3-billion, with the shortfall projected to grow without urgent intervention. Minister Angie Motshekga says ageing equipment, broken aircraft, affected ships and crumbling infrastructure show how badly underfunding has hit the military.
South Africa's Defence Department faces a severe cash crisis, potentially leading to its collapse. Minister Angie Motshekga revealed a projected R3.3-billion overspend on employee compensation for the current financial year, with the shortfall set to grow to R4-billion in 2027/28 and R4.6-billion in 2028/29 if left unchecked. The salary bill is the biggest threat, exacerbated by years of underfunding that have fallen short of rising salary increases, inflation, and other costs.
Motshekga suggested encouraging employees to retire early and offering incentives for departures, yet warned these measures alone are insufficient. The department cannot reduce staff numbers without risking its ability to replace older personnel, as it currently recruits about 5,000 people every two years—insufficient to meet the demands placed on the defence force.
The issue of bloated salaries for senior employees was dismissed by Motshekga, who attributed the department's financial woes to underfunding. The consequences of this shortage are evident in the deteriorating condition of military equipment, ships, and infrastructure. She emphasized that cost-cutting alone won't bridge the funding gap and that Parliament and Cabinet ultimately decide on the funding the Defence Department receives.
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