SA money woes, priorities and values…

South Africa is drowning in debt while spending billions on global summits and costly commissions. SHARMINI NAIDOOsays this raises urgent questions about priorities, values, and whether governance failures undermine the nation’s fragile economic future.

South Africa’s debt levels remain high and continue to increase, and we’re spending around R1.2 billion per day on debt service (interest). There are no signs of this abating. It is therefore unsurprising to hear that our country’s credit rating may fall even lower than junk status. According to Daily Investor, “rating agencies do not expect South Africa’s debt to stabilise in the coming years, threatening to plunge the country’s credit rating even further.”

Although rating agency Fitch recently left South Africa’s rating unchanged at BB- or “non-investment” grade, also known as junk status, it has confirmed that “further significant increases in the government’s debt-to-GDP, for example, could see a downgrade in South Africa’s credit rating”.

Despite National Treasury’s plans to maintain debt-to-GDP levels at 77% (contrary to Fitch’s prediction of 79%) and its commitment – or perhaps hope – to substantially reduce government expenditure, we have not seen any concrete plans to do so. In fact, have you ever wondered how government decides to prioritise and allocate funding to commissions and events that have not been budgeted for in the fiscal year?

Succinctly put by Google AI, unforeseen expenses are primarily funded by reallocating money through an Adjustments Appropriation Bill or by using the Contingency Reserve, which is a specific budget item set aside by the National Treasury for such purposes. Funds for these unforeseen or unavoidable expenditures can also be sourced through direct charges against the National Revenue Fund, which is the main repository for government revenue.

Treasury oversees the allocation and management of these funds, including both the Contingency Reserve and the process for the Adjustments Appropriation Bill. For provincial governments, the relevant provincial treasury manages the process for provincial departments.

Whilst we may not all agree on the prioritisation of this spending, these are some of the activities to which the State has allocated funding this year.

G20 Leadership Summit 2025 – “Solidarity, Equality, Sustainability”

With a budget of R691 million for preparations, South Africa is set to host the G20 Leaders’ Summit this year in Gauteng in November.

The Group of Twenty (G20) is an international forum of both developing and developed countries that seeks to find solutions to global economic and financial issues. The G20 members comprise 19 countries (South Africa among them) and include the world’s major economies, representing 85% of global GDP, over 75% of international trade, and about two-thirds of the world’s population.

In the words of tourism minister Patricia de Lille, it is hoped that the summit investment will “create huge opportunities for international travel into the country”. She added: “We are going to use the opportunity to sell the beauty of South Africa to all G20 delegates through offering packages… encouraging them to come earlier, or stay longer and enjoy more of South Africa.”

As a country, we may have some of the most beautiful natural flora and fauna, and breathtaking sights, but the same cannot be said for our degrading infrastructure. Earlier this year, President Ramaphosa urged Gauteng Province to address the “governance failures, financial mismanagement, crumbling infrastructure, crime and lawlessness, and unreliable service delivery” that plague the province in general and the city of Johannesburg specifically.

Despite ongoing infrastructural challenges such as malfunctioning traffic lights, potholes, deteriorating buildings, and street crime, the province has committed that Gauteng – in particular, Johannesburg – will meet the logistical and security demands of hosting leaders from the world’s largest economies.

According to Gauteng Premier Panyaza Lesufi, “work has been underway since the President and National Executive’s oversight visit to Johannesburg, which saw the establishment of the Presidential Johannesburg Working Group (PJWG) to address long-standing urban management challenges.”

The key focus areas identified by the working group have been governance, the financial stability of the City of Johannesburg, water and sanitation, electricity supply, safety, and CBD renewal.

“About 1,523 potholes have been repaired, with the project now 97% complete; work is 40% complete on the 456 road markings scheduled for refresh. The initiative, which includes grass cutting and litter picking, as well as herbicide application across 481km, is at 70%,” Lesufi reported.

“The installation of 11.21km of new fencing is in its early stages, with 4.4% complete,” he continued. “Rehabilitation work on 23,052m² of lighting is nearing completion, currently 88.7% complete, with repairs on 64 traffic signals halfway complete at 50%. Additionally, repairs for 21,274 streetlights are well underway, with 74% of the work completed. Maintenance on 443 stormwater drains is almost finished, with 88.4% complete.”

With taps still running dry in many areas in and around Johannesburg, residents feel that these are nothing but empty promises and remain unconvinced that the water shortage challenge will be resolved any time soon. Johannesburg Water has assured the public that supply to critical areas – including venues for the upcoming G20 Summit – will remain stable, with water tankers on standby.

Whether Gauteng and the City will be able to pull off the event without glitches remains to be seen. It is just such a pity that “work” is only done when prompted by major events like the G20 Summit and the World Cup.

Meanwhile, electricity minister Ramokgopa is convinced that “we will end load reduction in the next 12 months once we get the necessary cooperation”. Practically speaking, he is saying that load reductions will end if there is community support (no illegal connections and people pay for the service).

Speaking at a recent media briefing, Ramokgopa reminded the public of his promise to end loadshedding in the country. He highlighted the fact that generation capacity has risen from 43% in 2023 to 70% in 2025 after measures such as the use of load reduction were implemented. According to the minister, this is the first time Eskom has surpassed the 70% energy availability target since it was introduced by the board.

Madlanga Commission – A hefty price tag for justice

Then there is the Judicial Commission of Inquiry into Criminality, Political Interference and Corruption in the Criminal Justice System, also known as the Madlanga Commission (named after the chairperson – retired acting deputy chief justice Mbuyiseli Madlanga). It was established by President Ramaphosa in response to allegations that our criminal justice system was compromised because of criminal and political interference, and it is estimated to cost almost R148 million over the next six months.

To put it into perspective, the Zondo Commission of Inquiry ran for four years (August 2018 until June 2022) and cost taxpayers R1 billion – so, roughly, R125 million every six months. Considering that our average inflation from 2022 to 2025 was only 5.6%, we can only wonder why this commission will cost so much more and how Treasury will fund it.

Proceedings during the first week

At the time of writing this column, we were a week into proceedings, and the commission had heard damning testimony from KwaZulu-Natal (KZN) Police Commissioner Lt-Gen Nhlanhla Mkhwanazi. He shared the tragic details of the alleged contract killing of Vereeniging engineer Armand Swart, killed in a case of mistaken identity after his employer blew the whistle on alleged corruption in a Transnet contract. He also implicated businessman Vusimuzi “Cat” Matlala and various other associates of police minister Senzo Mchunu, who was suspended in July 2025. The commissioner also expressed his views on Mchunu’s alleged interference in police operations, and recalled earlier allegations of impropriety.

This was followed by testimony from the national commissioner of police, Fannie Masemola, about the controversial directive signed by Mchunu to disband the KZN National Political Killings Task Team (PKTT) a day after he went on leave.

Both police commissioners also testified about the instruction from the deputy national commissioner: crime detection, Lt-Gen Shadrack Sibiya, to remove the 121 case dockets that were being investigated by the PKTT.

We have also heard testimony from SAPS legal services division and head of governance and policy, Major General Van Rooyen, that the “minister unlawfully strayed into the constitutional competence of the national commissioner”, which means that the minister usurped the powers of the national commissioner and overstepped his mandate in disbanding the PKTT – he did not have the authority to do so.

This is not an unusual occurrence, as there have been many instances where this has happened and where the courts have ruled that ministers did not have the power to intervene or make such decisions. The previous minister of higher education’s unsuccessful attempt to access National Skills Fund monies, the exclusion of former employer organisations on the reconstituted TETA board years ago, and the minister of finance’s VAT increase are just a few that come to mind.

During the commission’s first week, we also heard how an Ekurhuleni Metro Police Department (EMPD) official facilitated the registration of vehicles belonging to Matlala – the controversial “tenderpreneur” and attempted-murder-accused. It is alleged that Matlala received special treatment from the Ekurhuleni law enforcement offices and used vehicles fitted with blue lights fraudulently registered under the municipality by EMPD acting chief brigadier Julius Mkhwanazi while he was director of specialised services.

Following this allegation, Mkhwanazi applied for special leave, which has been granted so that the allegations levelled against him can be investigated. As the commission is expected to run for six months, we will have to wait for this outcome and for more shocking revelations that are bound to emerge.

On second thought, I think that nothing much will shock the average South African. We may not even bat an eyelid, as we have become so accustomed to corruption being a way of life.

Vickson Ncube, chief executive officer of the Pan African Federation of Accountants, proposes that society must be “sensitised to abhor the corrupt and not celebrate them… the private sector must accept that bribery is wrong, and that demanding bribes is wrong. Authorities must accept that using their position other than for the purpose for which it was intended is wrong.”

I believe that it depends on our value system. According to Ángel Gurría, Organisation for Economic Co-operation and Development secretary general, “Integrity, transparency, and the fight against corruption have to be part of the culture. They have to be taught as fundamental values.”

Let us hope that we can step up and be a nation with a value system that upholds and prioritises honesty, fairness, truth, justice, integrity, and accountability. Only then can we all enjoy, celebrate, and be proud of the beauty, splendour, rich cultural heritage, and diversity of our country.