South Africans will get some relief at the pumps from next month, but the Organisation Undoing Tax Abuse (OUTA) says government must show the same urgency in tackling wasteful spending that has seen infrastructure projects fail despite billions in funding.
Treasury announced a temporary R10 billion fuel levy reduction in Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement. From 4 November, petrol levies will drop by R1,50 per litre and diesel by R3 per litre. The relief will then reduce to R1 and R1,50 respectively until 5 January 2027.
The reduction targets the tax component of fuel prices, though other factors will determine final pump prices. Lower diesel costs could ease pressure on transport, agriculture and food prices.
“South Africans are feeling the pressure every time they fill their tanks, buy groceries or pay for transport. This relief will help, but only temporarily. Government needs to examine the long-term tax burden on fuel while getting serious about the billions lost through waste and poor financial management, including at institutions such as the Road Accident Fund,” OUTA CEO Wayne Duvenage says.
The R10 billion relief comes from money previously transferred to the Central Energy Fund. OUTA wants Treasury to review the fuel levy structure to find opportunities for lasting relief without compromising infrastructure funding.
Infrastructure grants fail to deliver value
Treasury’s review of R887 billion transferred to provinces and municipalities through infrastructure conditional grants between 2017-’18 and 2023-’24 found that projects were often delayed, incomplete or failed to deliver their intended benefits.
While government debt has stabilised at 78,4% of GDP, Treasury revised its economic growth forecast for 2026 downwards from 1,6% to 1,2%.
“Spending the money is not the same as doing the job. Treasury must tell South Africans which projects failed, how much was spent, who was responsible and what action has been taken. We cannot keep identifying these failures without holding anyone accountable,” Duvenage says.
OUTA wants the full review published, including details of underperforming projects, expenditure, reasons for failure and corrective action taken.
GBV funding undermined by forensic delays
The budget allocates an additional R4.14 billion towards tackling gender-based violence and femicide, including more social workers, forensic and investigative capacity, sexual offences courts and Thuthuzela Care Centres.
But OUTA questions how effective these interventions will be when the systems meant to deliver justice already fail victims.
According to findings presented to Parliament by the DNA Board on 16 October, only 1,5% of DNA profiles met the 30-day turnaround target, while nearly 166 000 DNA reference samples were still awaiting administrative processing at SAPS.
“How can government claim to be serious about fighting gender-based violence when only 1,5% of DNA profiles meet the required turnaround target? We cannot keep allocating billions while the systems meant to protect victims continue to fail them,” Duvenage says.
Municipalities spend too much on running costs
The budget allocates an additional R21,8 billion to the local government equitable share and R13,4 billion through the general fuel levy allocation to metropolitan municipalities.
Yet Treasury found that most municipalities have sufficient funding for day-to-day operations but spend too much on running costs, leaving too little for infrastructure maintenance.
“When municipalities collect money for electricity and water but fail to maintain those networks, residents pay twice. First through their municipal bills and then through the cost and disruption of failing infrastructure,” Duvenage says.
OUTA continues to scrutinise City Power over its outstanding Eskom debt and reliance on municipal borrowing to meet payment obligations, despite previous claims that the debt had been settled.
Treasury has suspended equitable share transfers to 69 municipalities for failing to pay creditors. OUTA wants stronger intervention against persistent financial mismanagement, without leaving residents to suffer the consequences.
With local government elections approaching on 4 November, voters should demand answers about how their municipalities have spent public money and what they have delivered.
Accountability must lead to consequences
OUTA will examine proposed amendments to the Public Finance Management Act and Municipal Finance Management Act, which aim to strengthen financial oversight and the recovery of losses.
The organisation also wants procurement reform to prioritise transparent, publicly accessible tender processes, particularly following the Constitutional Court’s invalidation of the Public Procurement Act.
“South Africa does not suffer from a shortage of laws. We suffer from a shortage of consequences when those laws are broken. Stronger legislation means little if officials continue wasting public money without being held accountable,” Duvenage says.
Treasury has allocated R516 million to the Madlanga, Khampepe and Nkabinde commissions of inquiry and R2,2 billion over the medium term to strengthen judicial independence.
OUTA believes the Madlanga Commission should continue its work, with consideration given to expanding its mandate to investigate alleged criminal activity and corruption across policing services nationwide.
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The organisation also wants transparent reporting on the costs and timelines of these commissions, publication of their findings and evidence that recommendations lead to appropriate investigations, prosecutions and the recovery of public funds.
The budget reflects a R286,8 million reduction in transfers to Sector Education and Training Authorities due to lower-than-anticipated skills development levy receipts. OUTA is investigating governance and spending concerns within SETAs and believes every rand allocated to skills development must deliver credible training opportunities and improved employment prospects.
Treasury has identified R38.1 billion in further savings over the medium term, including measures to reduce social grant fraud and inefficiencies in human settlements funding.
“South Africans are being offered a little relief at the pumps, but they are still paying a heavy price for government waste and inefficiency. Every rand wasted is money that could have maintained infrastructure, improved services or eased the burden on taxpayers. Government must demonstrate that it is as serious about stopping waste as it is about balancing its books,” Duvenage says
