Irregular expenditure at DBE, SACE and Umalusi rises to R96.3m

During a recent parliamentary briefing, irregular expenditure at three major South African education institutions – the Department of Basic Education (DBE), the South African Council for Educators (SACE), and Umalusi – rose to R96.3 million for the 2025/26 financial year. This figure represents an increase from R79.9 million in the previous year, despite the implementation of stronger financial controls.

DBE officials explained that infrastructure funding had not been fully utilized due to ongoing negotiations with the National Treasury regarding the allocation of funds. Bongani Shabangu, the DBE's acting deputy director-general for infrastructure, stated that the department had repeatedly approached the Treasury to clarify the excessive budget allocated to infrastructure projects.

It was later agreed to ring-fence infrastructure funding specifically for school sanitation projects in KwaZulu-Natal, the Eastern Cape, and Limpopo provinces.

Umalusi, responsible for quality assurance in general and further education and training, acknowledged financial compliance failures that led to its loss of a clean audit status. Their chief financial officer, Hendrik van der Walt, revealed that the institution had submitted its financial statements late, contributing to the irregular expenditure.

Despite this, Umalusi reported a R3.8 million surplus and submitted an adjustment budget for ministerial approval in March. They have since put corrective measures in place to prevent a recurrence.

SACE, too, received an unqualified audit opinion with findings, highlighting weaknesses in procurement and contract management, revenue collection, and efforts to prevent irregular expenditure. The council was also unable to effectively collect all owed funds and failed to comply with certain procurement requirements. Acting head of ethics and professional development, Tuzana Sophethe, stated that the institution would need to consult its chief financial officer before addressing the financial concerns raised.