Parliament, Tuesday, 24 June 2025 – The Portfolio Committee on Justice and Constitutional Development today agreed that the Special Investigating Unit (SIU) is severely underfunded and that its funding model needs urgent attention.
The committee today received briefings from the SIU and Legal Aid SA on their annual performance plan (APP) and budget for 2025/26. Committee Chairperson Mr Xola Nqola noted that these entities are doing important work. “Both have suffered from underfunding or budget cuts. The committee will engage with all necessary to see how we better finance entities that are doing excellent and important work, but whose work is being hampered due to funding constraints,” he said.
The committee heard that for the past nine years, the demand for SIU’s services has increased due to proclamations, which increased by 52% while the SIU’s staff headcount only increased by 6.5%.
Furthermore, the committee heard that the unpredictability of the resourcing demands reinforces the need for a responsive and flexible resourcing model. Over last six years, the SIU has recovered R6.6 billion while operational costs total R5.2 billion but grant funding has declined. SIU’s grant income in 2025/26 is R459 860 000, with R481 157 000 estimated for 2026/27, less than R 489 839 000 it received in 2023/24, despite the SIU having grown and recovered more funds for the government.
In order to meet incoming demand for work due to increased proclamations received, the SIU is estimating to grow to at least 1 000 officials. In the Estimates of National Expenditure, the SIU has budgeted to grow to 1 100 officials but will not have the cash resources to fund this growth, if it does not receive additional funding of at least with R250 million per annum.
The committee heard that the SIU’s outstanding invoices at the end of March 2025 amount to R1.2 billion. The bulk, 30% or R358 310 000 of this, relates to provincial government departments. Meanwhile, public entities owed the SIU 29% or R358 200 000, while national government departments owe 23% or R275 817 000.
Regarding the recovery of these funds, the committee heard that the SIU has introduced Project Khokhela, with the aim of instituting a targeted to approach debt recovery. Letters of demand have been signed and sent to the top 20 state institutions with long outstanding debt. Ministers’ offices have assisted with distributing these letters to state institutions. The SIU indicated that it is hopeful that some settlements will be made in the next few months.
The committee heard that the SIU’s planned creation of a permanent structure for lifestyle audits, including the procurement of a comprehensive tool for analysis, aims to enhance the prevention and detection of fraud and corruption, making lifestyle audits a key component of risk management.
The SIU said its financial stability depends on revising its funding model due to the increasing number of proclamations. Securing additional funding from the fiscus and amending the SIU Act with the Minister of Finance is crucial for long-term stability.
Mr Nqola agreed and reiterated that: “To strengthen the SIU, we must solidify the SIU Act. We need to establish with the department how far is this process.”
Regarding Legal Aid SA, the committee heard that it faces significant pressure from the R239 million budget reduction for the 2025/26 financial year. While salaries and related costs account for 80% of the budget, cost containment measures apply to 20% (operating budget), which is not significant.
The committee heard that staff rationalisation plans (including the freezing of positions and delayed recruitment) can be used to manage employee costs. However, this impacts negatively on service delivery to clients and operational capacity, ultimately reducing the number of clients the entity can assist. The leasing of office accommodation adds to financial pressures, as rental escalation rates outpace the modest increases in budget allocations.
According to Legal Aid SA, despite ongoing cost-cutting efforts, there are limited opportunities to achieve further savings. To manage these constraints effectively, it is crucial to align organisational targets with available resources, ensuring Legal Aid SA can meet service demands without overstretching its capacity.
Mr Nqola said that the committee notes the important work that Legal Aid SA does making legal representation available to the vulnerable and poor. “Therefore, the committee should do everything in its power to ensure that they are better funded, as it speak directly to the services they are able to render to those who cannot afford to pay for legal services,” he said.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON JUSTICE AND CONSTITUTIONAL DEVELOPMENT, MR XOLA NQOLA.
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E-mail: razzakani@parliament.gov.za
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