Higher education’s irregular spending soars to almost half a billion rand
· Citizen
The Auditor-General of South Africa has painted a troubling picture of irregular expenditure in the public higher education and training sector, with annual irregular expenditure increasing to R466 million in 2025/26, up from R176 million in 2024/25 and R243 million in 2023/24.
The findings are contained in the auditor-general’s 2025/26 Budgetary Review and Recommendations Report presented to Parliament’s Portfolio Committee on Higher Education and Training on Friday.
Visit asg-reflektory.pl for more information.
The portfolio includes the Department of Higher Education and Training, the National Skills Fund (NSF), National Student Financial Aid Scheme (Nsfas), 21 sector education and training authorities (Setas), the Quality Council for Trades and Occupations (QCTO), the Council on Higher Education and the South African Qualifications Authority (SAQA), among other entities.
Non-compliance and over-expenditure
The Services Seta accounted for R232.2 million, followed by the Health and Welfare Sector Education and Training Authority (HWSeta) at R30.4 million, SAQA at R25.5 million and the Local Government Sector Education and Training Authority (LGSeta) at R24.4 million.
The auditor-general identified several causes, including non-compliance with Seta grant regulations, expenditure above prescribed administration limits and failures to comply with supply-chain management requirements.
Fruitless and wasteful expenditure also remained substantial, reaching R246 million in 2025/26, compared with R87 million the previous year.
Services Seta was the biggest contributor at R92.4 million, followed by the Manufacturing, Engineering and Related Services Sector Education and Training Authority (MerSeta) at R54.9 million and LGSeta at R32.7 million.
Beneficiaries affected
According to the report, such expenditure reduces the funds available for training and skills development and limits the number of beneficiaries who can be supported.
“Irregular, fruitless, and wasteful expenditure weakens value for money and diverts resources from achieving organisational objectives… Non-compliance with procurement and regulatory requirements increases the risk of irregular expenditure, financial losses, service delivery delays, contract disputes and ineffective use of resources,” the report states.
Auditor-General Tsakani Maluleke also highlighted the extent of outstanding consequence-management processes.
Investigations delayed
Of R2.026 billion in irregular expenditure, R1.68 billion, or 83%, was attributed to the four largest contributors to expenditure that had not yet been dealt with.
Management cited investigations and assessments still underway, pending condonation, legal and governance processes, as well as the need for additional evidence and investigative support.
The auditor-general warned that delays in finalising investigations undermine accountability and weaken public trust.
She said the delays pointed to systemic challenges in financial governance, including delays in appointing service providers to conduct investigations and poor documentation that complicated investigations.
The audit report pointed out that “failure to investigate and address with transgressions, recover losses, and take disciplinary action against responsible officials fosters a culture of noncompliance and increases the risk of recurring misconduct”.