South Africa: Defence Cash Crisis Puts Department At Risk of Collapse

What the report says

South Africa’s Defence Department is facing a worsening budget crisis that the minister says could threaten its ability to function. According to reporting by Scrolla, distributed by AllAfrica, Defence and Military Veterans Minister Angie Motshekga told the National Council of Provinces in Johannesburg on Wednesday that the department is projected to overspend its employee compensation budget by R3.3-billion, with the gap expected to grow in coming years if nothing changes.

Motshekga said the department had already gone over budget by about R3-billion in the previous financial year. She linked the shortfall to years of underfunding, saying salary costs, inflation and other pressures have not been matched by the resources allocated to the military. She warned that the funding problem is reflected in visible strain across the defence force, including ageing equipment, grounded aircraft, affected ships and deteriorating infrastructure.

The department has raised the issue with Treasury, Cabinet and Parliament and is now considering spending cuts, early retirement for eligible staff and incentives for employees to leave. But the minister said these measures would not solve the deeper problem, especially because the South African National Defence Force still needs younger recruits to replace older personnel.

Motshekga said the department recruits about 5,000 people every two years, which she described as too little for its needs. She said the final decision on funding lies with Parliament and Cabinet, since the department cannot allocate money to itself.