Parliament, Thursday, 25 June 2026 – The Portfolio Committee on Women, Youth and Persons with Disabilities together with the Standing Committee on Public Accounts (SCOPA) had a joint committee meeting with the Board and executive management of the National Youth Development Agency (NYDA), the Minister of Women, Youth and Persons with Disabilities, Ms Sindisiwe Chikunga, and the Deputy Minister, Ms Steve Letsike, to deliberate on concerns relating to NYDA governance, accountability, financial management, board stability and operational effectiveness.
In her opening remarks, the Chairperson of the Portfolio Committee on Women Youth and Persons with Disabilities, Ms Liezl van der Merwe, said the committee was compelled to intervene following the receipt of multiple whistle-blower reports and sustained negative media coverage. These reports implicated the NYDA in allegations of financial mismanagement, governance failures, leadership instability, irregular procurement practices and concerns regarding the delayed appointment of the Audit and Risk Committee (ARC). It is also alleged that the Board Chairperson attempted to prevent the Sunday Times from reporting on matters relating to the NYDA.
The allegations required urgent parliamentary scrutiny, particularly reports that the agency had allegedly procured forensic investigation services to identify whistle-blowers instead of testing the veracity of complaints levelled against it, added Ms van der Merwe.
“We want to combine the work that Scopa does in respect of financial management with our oversight responsibilities as the portfolio committee. As Members of Parliament, we have a constitutional obligation to conduct oversight over these issues,” Ms van der Merwe said.
She added that, as the country marks Youth Month amid a national youth unemployment crisis, Parliament has a duty to interrogate the issues affecting the NYDA and ensure that the agency is able to deliver on its mandate.
Briefing the committee, Minister Chikunga provided context regarding the transition between the previous and current NYDA boards and the delays experienced in finalising the agency’s audit. She explained that the Chief Executive Officer assumed office on 1 July 2025 after the close of the 2024/25 financial year, while the current board was appointed on 1 August 2025. Upon taking office, the board found that the Auditor-General’s audit had not been completed, prompting a request for an extension, which was communicated to Parliament in September 2025 in the interests of transparency.
The Minister confirmed that a disputed amount of approximately R71 million identified during the audit process had since been addressed. She further explained that following the receipt of two whistle-blower complaints raising concerns of financial mismanagement and irregularities linked to the ARC appointment, she formally requested National Treasury to investigate and advise on the appropriate course of action. She also instructed the NYDA board to suspend the ARC appointment, pending the outcome.
The Minister expressed concern about the reputational damage caused by ongoing media reports, particularly those relating to internal leaks and attempts to identify the sources of such information, stressing that the board must work to restore public confidence to ensure the sustainability of partnerships and funding opportunities.
During the meeting, differing accounts emerged from the NYDA Board Chairperson, Dr Sunshine Myende, and Deputy Chairperson, Mr Bonga Makhanya, regarding the extension of the ARC. Dr Myende said the extension was approved at a board meeting and that a signed resolution existed. However, Mr Makhanya said he did not recall a board meeting at which a decision was taken to extend the ARC indefinitely until a new committee was appointed. Members said the disagreement, together with the delay in appointing the new ARC, raised concerns about board unity, governance processes and the credibility of the institution.
The NYDA explained that it had received numerous emails raising various issues, including the alleged leaking of names of people to serve as members of ARC. The agency said the proposed investigation was not intended to target protected whistle-blowers, but to establish the source and circumstances of specific leaks. However, the board acknowledged differing views on how the investigation should be approached.
The committees heard that terms of reference for some investigations had not been formally adopted. The ARC said they could not adopt the terms of reference, as preliminary findings suggested potential conflicts of interest involving individuals present in meetings where such decisions would have been taken. Members stressed that all allegations must be investigated thoroughly, transparently and with clear reporting to the committees.
Mr Zibi said he is alarmed at the length of time it is taking to resolve matters within the NYDA board particularly given that the board has a three-year term. “We are now in June and you are approaching the end of your first year, yet key governance issues such as the appointment of the Audit and Risk Committee remain unresolved,” he added.
Members expressed disappointment that a board that had received unanimous support from the National Assembly at the time of its appointment appeared to be divided, with some members characterising the situation as indicative of factionalism. Committee members noted that while differing views are inherent in governance structures, unity must ultimately be reflected in collective decision-making and accountability.
A significant issue dominating discussions was the Board Chairperson’s allegations that there was interference in the board’s affairs. Members pressed for more information on this, emphasising that such assertions have serious implications and must be substantiated.
While Dr Myende indicated that there had been instances where board members allegedly received messages directing how decisions should be taken, she declined to disclose the identities of those involved, citing the need to protect processes and reputations. Committee members firmly rejected this position, emphasising that the committees have the authority to demand full disclosure and that such allegations cannot remain vague or unsubstantiated. The committees reiterated their expectation that a detailed report, including evidence, be provided to the committees without delay.
The committees further interrogated the NYDA’s financial position, raising concerns about the agency’s sustainability. They noted the NYDA’s reported current liabilities of approximately R78.6 million and net liabilities of approximately R29.9 million, which means liabilities exceed assets with a growing deficit of approximately R69.9 million.
The committees were also concerned about the NYDA’s inability to settle short-term obligations due to cash flow constraints, which were attributed in part to donor funding arrangements requiring upfront expenditure prior to reimbursement. They emphasised the risk associated with the NYDA’s heavy reliance on government transfers and donor funding and called for the development of clear strategies to diversify income streams and strengthen financial sustainability. They also requested clarity on scenario planning in the event of funding shortfalls, as well as concrete interventions to address the growing deficit and restore the agency’s financial position.
Mr Zibi pressed the NYDA for more precise responses, the NYDA outlined specific measures that have been implemented to address its financial challenges. These include the introduction of stringent cost-containment measures, particularly in operational expenditure, the implementation of strict travel controls aligned to approved budgets and travel plans, and the adoption of a detailed request-for-quotation (RFQ) demand planning system that limits procurement to pre-approved, transaction-level planning within divisions.
The NYDA confirmed that it has adopted a multi-year deficit reduction plan aimed at rebuilding reserves and preventing the recurrence of over-expenditure. The committees stressed that while these interventions are noted, their effectiveness will be evaluated once audited financial statements are tabled.
Further scrutiny was directed at irregular expenditure, particularly an amount of approximately R71 million under assessment, of which R46.6 million relates to travel expenditure flagged due to insufficient pre-approval documentation. Members expressed alarm at the magnitude of the amount, questioning whether such expenditure could be justified in the context of the agency’s mandate.
In response, the NYDA clarified that the amount represented total travel expenditure for the financial year, covering both domestic programme implementation, including outreach to rural areas, and limited international travel. The NYDA maintained that the concerns raised by the Auditor-General relate largely to compliance and documentation processes rather than unauthorised travel itself. However, committee members remained concerned about weaknesses in internal controls and emphasised the need for improved compliance and oversight mechanisms.
The committees also examined governance concerns arising from a legal matter involving the Board Chairperson’s application against the Sunday Times. They highlighted inconsistencies between court documents, in which the matter was reportedly pursued in a personal capacity, and statements suggesting it related to official duties. It further emerged that the board had not approved the legal action, raising concerns about governance protocols and potential financial implications for the NYDA. The Minister indicated that this matter would be investigated further to establish the facts and ensure compliance with governance standards.
Conflicting accounts were also presented regarding the approval of investigations into leaks and whistle-blower allegations. While some board members maintained that a resolution had been adopted to proceed with such investigations, others disputed this, stating that no formal approval had been granted and that discussions on the matter had not been concluded. Concerns were raised about the appropriateness of investigations aimed at identifying whistle-blowers, with some members cautioning that such actions may undermine whistle-blower protection frameworks and institutional transparency. Parliament emphasised that all allegations must be investigated in a manner that is lawful, ethical and focused on determining the truth of the claims.
The committees also expressed concern regarding the limited reach and impact of NYDA programmes, noting that the agency reported supporting approximately 2 600 young beneficiaries in the context of an estimated 4.7 million unemployed youth. This raised questions about value for money and the effectiveness of current programmes in addressing the scale of the youth unemployment crisis. The NYDA acknowledged these concerns and indicated that it is working to strengthen its impact measurement frameworks, including improving follow-up monitoring beyond the current 30-day and six-month assessments to better track long-term outcomes such as job creation and business sustainability.
The committees further explored issues relating to governance capacity and whether adequate induction and support had been provided to the newly appointed board. The Minister confirmed that a formal induction process had been conducted and that additional support, including engagement with the Institute of Directors, was being pursued to strengthen governance capabilities and ensure compliance with fiduciary duties.
“The issues raised today go to the heart of public trust, the NYDA carries the hopes of millions of young people, and it must therefore demonstrate the highest standards of governance integrity and accountability restoring confidence in this institution in not optional it is essential”, said Mr Zibi.
Moving forward, the committees agreed the NYDA must return to provide comprehensive reports addressing governance processes, the status of investigations, financial management interventions, the functioning of the ARC and allegations of interference.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON WOMEN, YOUTH AND PERSONS WITH DISABILITIES, MS LIEZL VAN DER MERWE ,AND THE CHAIRPERSON OF THE STANDING COMMITTEE ON PUBLIC ACCOUNTS, MR SONGEZO ZIBI.
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