The Special Investigating Unit SIU reported that in 2023, more than R5 billion from the National Student Financial Aid Scheme Nsfas might have been allocated to students who did not meet the funding criteria. These students reportedly had household incomes exceeding R350,000, making them ineligible. The SIU noted that many applicants did not provide parental details, hindering proper means testing. Separately, the auditor-general's 2024-25 Nsfas audit identified 14,000 students who might not have met financial eligibility. The auditor-general also found that 822 deceased students continued to receive funds and over 14,000 ineligible students were funded despite exceeding income thresholds. Rudie Heyneke, investigations manager at the Organisation Undoing Tax Abuse, stated that students who improperly received funds due to exceeding the R350,000 household income threshold will be required to repay them. The SIU is managing recoveries, and Nsfas has engaged debt collectors to recoup funds, including amounts owed from before 2018. Heyneke also suggested Nsfas revise its selection criteria to focus on funding students in fields critical for the country's skill needs, while acknowledging the difficulty in determining the exact extent of Nsfas' financial challenges.
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National Treasury has unfrozen funds for 42 municipalities, including the City of Johannesburg, and will release equitable share grants for 69 municipalities once they implement corrective financial measures. Deputy Minister of Finance Ashor Sarupen stated that the withholding of grants for municipalities flagged for issues like questionable financial decisions and unfunded budgets was not punitive, but aimed at encouraging behavioral correction. Municipalities must investigate fruitless, unauthorized, and irregular expenditure, ensure consequence management for fraud, and service debts to providers like Eskom and water boards. Sarupen noted that municipal debt to Eskom exceeds R100 billion. For municipalities claiming financial struggles, Treasury offers to release a portion of funds upon proof of payment to creditors, or upon signing credit agreements. The Deputy Minister emphasized that not holding municipalities accountable would lead to worse consequences for residents, such as reduced water pressure and load shedding. The mayor of Johannesburg, Dada Morero, reportedly met with Minister of Finance Enoch Godongwana to discuss the city's corrective actions, followed by an extraordinary council meeting to discuss disciplinary action against senior officials, aimed at demonstrating the city's commitment to addressing corruption and wasteful expenditure to the National Treasury.
The City of Ekurhuleni is experiencing a significant financial crisis, owing R7.3 billion as of May 31, while possessing only R2 billion in its bank account. Gauteng MEC for finance Nkululeko Dunga revealed these figures in response to DA questions in the provincial legislature. The city's debts include R5.7 billion to Eskom, R555 million to Rand Water, R293 million to provincial government departments, R4.4 million to other municipalities, R91.3 million to suppliers of goods and services, and R669 million to contractors. DA mayoral candidate Khathutshelo Rasilingwane expressed disappointment that the available funds cover less than half of the debt, attributing the situation to corruption, mismanagement, and maladministration. Rasilingwane warned that failure to pay Eskom and Rand Water could lead to limited services for residents, such as power cuts and water supply throttling. The DA Gauteng plans to request an urgent meeting with Ekurhuleni Mayor Nkosindiphile Xhakaza to discuss the city's finances. Wayne Duvenage, CEO of Organisation Undoing Tax Abuse, stated that the financial issues in Ekurhuleni and other cities indicate a serious cash flow and financial management crisis, impacting service delivery and infrastructure. Theo Neethling of the University of the Free State highlighted that Ekurhuleni's financial decline underscores governance challenges in local governments, with responsibility resting on the ANC-led government of local unity coalition. Neethling also not
Gauteng South Director of Public Prosecutions Advocate Andrew Chauke has been cleared by the Nkabinde Inquiry, a year after his suspension on July 20, 2025. The suspension followed allegations by then-NPA boss Shamila Batohi regarding questionable decisions made by Chauke. These included his alleged initial reluctance to prosecute Duduzane Zuma for culpable homicide in a 2014 incident that resulted in a death, and questions about why former Crime Intelligence head Richard Mdluli was not prosecuted on a murder charge related to a 1999 shooting. The Randburg Magistrate鈥檚 Court acquitted Zuma of culpable homicide in 2019, and Mdluli was cleared of murder but found guilty of kidnapping and assault. President Cyril Ramaphosa established the Nkabinde Inquiry on September 29, 2025, to determine Chauke's fitness for office. The panel, chaired by Justice Baaitse Elizabeth Nkabinde, found no credible evidence to support allegations that Chauke took prosecutorial decisions as alleged in the Cato Manor matter or acted unlawfully. The panel also found Chauke鈥檚 decision to provisionally withdraw murder charges against Mdluli and refer the matter to an inquest was not irrational. The Presidency confirmed on Wednesday that President Ramaphosa communicated the findings to Chauke, stating that there is no basis to conclude Chauke is unfit to hold office. Presidential spokesperson Vincent Magwenya added that the President trusts Chauke will continue his responsibilities with dedication and inte