Parliament, Wednesday, 7 October 2026 – The Portfolio Committee on Trade, Industry and Competition has raised serious concerns over the Department of Trade, Industry and Competition’s (DTIC) performance during the 2025/26 financial year.
The committee heard that the department achieved 62% of its planned targets while spending 98% of its budget.
The DTIC and its entities play an important role in advancing economic growth, industrial development, job creation and economic transformation. The committee therefore emphasised that these institutions should function optimally, be adequately capacitated, coordinated and accountable to make meaningful contributions to these outcomes.
The department received an unqualified audit outcome with findings for the 2025/26 financial year. The Office of the Auditor-General of South Africa (AGSA) raised a material irregularity related to fraudulent claims paid from its Capital Projects Feasibility Programme, which resulted in a loss of R50.8 million.
Notwithstanding the DTIC’s explanation and the work undertaken to rectify the material irregularity, the committee expressed concern about the regression in the department’s audit outcome from a clean audit outcome in previous financial years. It urged the department to conclude its investigations, address the root causes of the incidents, take the necessary steps timeously to recover the financial losses and strengthen measures to prevent any recurrence.
The committee also remains concerned about the non-resolution of material irregularities within the National Lotteries Commission. Furthermore, it noted that the South African Bureau of Standards’ 2024/25 Annual Report has been tabled and that the AGSA started auditing its 2025/26 annual financial statements in September 2026.
The committee urged the department and its entities to address the audit findings and management control concerns raised by the AGSA, stating that it will continue to oversee progress in these areas quarterly until all issues are resolved.
While acknowledging the impact of other government departments and external stakeholders on the outcomes of the DTIC’s non-financial performance over the 15 months, the committee raised concerns about the department’s trend of relatively low non-financial performance and its misalignment with expenditure.
The committee urged the department to implement measures to address this downward trend and improve its performance against planned targets. It stressed that more should be done to grow the economy. It also emphasised the importance of the DTIC continuing to work with relevant departments and public entities to resolve binding constraints, including transport and logistics costs.
The committee further expressed concern about the 2025/26 performance of the Development Finance Institutions (DFIs), namely the Industrial Development Corporation and the Export Credit Insurance Corporation, which achieved 47% and 44% of their planned targets, respectively. The DFIs play a significant role in supporting businesses to facilitate economic growth and job creation in the country. The committee will engage these entities and others on their 2025/26 performance during November 2026.
The committee welcomed the department’s progress thus far in resolving critical vacancies across the DTIC Group’s board and senior management levels. However, it remained concerned about internal vacancies, particularly at senior management level, and encouraged the DTIC to conclude the ongoing recruitment processes.
The Chairperson of the committee, Mr Mzwandile Masina, said, “The committee will continue overseeing governance and performance of the DTIC and its entities to ensure that its work translates into an inclusive and growing economy.”
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MR MZWANDILE MASINA.
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