North West Government must account for R383 million in underspending for the 2024/25 financial year

Issued by Freddy Sonakile – DA Spokesperson on Office of the Premier
01 Jul 2025 in Press Statements

Note to Broadcasters: Please find linked soundbites in English by Freddy Sonakile MPL

The Democratic Alliance (DA) will hold Premier Lazarus Mokgosi to account following his oral reply to my question regarding underspending by North West provincial departments.

According to the Premier, based on pre-audited financial performance, most departments spent between 98% and 99% of their allocated budgets aligned with acceptable spending norms. However, the total provincial underspending still amounts to a staggering R383 million, which includes significant shortfalls in key departments.

The Departments of Agriculture and Rural Development and Economic Development, Environment, Conservation and Tourism recorded expenditure levels below 95%, together accounting for R143 million in underspending.

The Premier has committed to assessing the severity of the underspending and the reasons behind it, with a view to instituting consequences in terms of applicable legislation for both MECs and Heads of Department (HODs). He further indicated, in response to a follow-up question, that this review would be completed within a month.

Additionally, the Premier confirmed that the province lost R294 million in conditional grants, with only R172 million submitted for rollover consideration by departments such as Health, Arts and Culture, Education, Human Settlements, and Agriculture and Rural Development.

The majority of these grants are linked to infrastructure delivery.

In the words of President Cyril Ramaphosa at last week’s National Council of Provinces (NCOP) sitting: “Failure to spend funds by a department is tantamount to treason, regardless of how little those funds may seem.” We fully agree. Every cent of underspending reflects a lost opportunity to deliver services to the people of North West, whether it’s a road not fixed, a clinic not built, or support not given to farmers and entrepreneurs.

The DA will monitor this matter closely, particularly the outcomes of the Premier’s promised review, and we will continue to hold the provincial government accountable, not just for spending funds, but for ensuring value for money in every expenditure undertaken.