An under-expenditure of over E30 million at the ministry of health, caused by outstanding supplier invoices, sparked a debate on capital projects lying idle.
Public Accounts Committee (PAC) members yesterday questioned why the ministry, which appeared before Parliament, was approving the construction of hospitals and clinics that risk becoming unutilised (“white elephants”).
The auditor general reported that the ministry had an under-expenditure on several projects, including equipment for hospitals and clinics, institutional housing, provision of security, water supply, health systems strengthening, and construction of clinics, which amounted to E31 420 397.71 in the fiscal year ended March 31, 2025.
The ministry’s Principal Secretary (PS) Khanya Mabuza said the under-expenditure was due to outstanding supplier invoices, which makes it difficult to continue with some payments if there are missing documents. The PS admitted that there was a challenge utilising the budget, mainly caused by cashflow challenges at the ministry which impacts implementation.
Matsanjeni South Member of Parliament Sabelo Ndlangamandla wanted to know why the ministry was constructing the health centres because some of them turn out to be white elephants yet public funds have been spent on them. He made an example of one constructed under Sigwe Inkhundla which is not yet servicing the public and is currently dilapidating.
“It is a first-world facility, but it is not working. Why do we keep constructing these clinics and hospitals when they will remain unused?” he wondered.
The PS responded that for a clinic or hospital to function, it has to meet the full requirements and standards. He said it would be an exercise in futility to open the facility when there are inadequate working tools to make it fully functional, citing staff shortage as a major contributing factor.
Somntongo MP Sandile Nxumalo shared that some of these facilities were constructed as far back as 2013, remaining closed due to lack of staff, accommodation, or equipment. “This translates to wasteful expenditure because there is no value for money spent,” he submitted.
PAC Vice-Chairman Manzi Zwane requested the PS to furnish the committee with data reflecting how many health facilities are currently “white elephants” and how many personnel are needed to see them functioning. PAC Chairman Madala Mhlanga further recommended that the data indicate whether the facilities have necessary maternity wards.
Gege MP Magesi Dlamini submitted that it was disheartening to note millions in under-expenditure while facilities across the country are unfit to service the people. He cited a clinic at Gege where a leaking roof had spoiled medication to the extent that it had to be disposed of.
In his report, the Auditor General (AG) highlighted that under-expenditures of 10% or more in a year are not conducive to the development of the country and have a negative impact on service delivery. He said this was a serious concern as the unutilised funds deprive other government programmes of planned development initiatives.
“Had the funds been accessible and/or used to finance essential programmes, they would have contributed towards the development and economic growth of the country,” reported the AG.
He added that government may face slower economic growth due to the opportunity cost of tying up unutilised funds. He advised the controlling officer to ensure released funds are used for intended purposes and to provide detailed reasons for non-utilisation.
