By Lehlohonolo Lehana.
The Department of Defence (DOD) has come under fire for failing to take action against officials that entered into a lease agreement of St George’s Hotel at a cost of R5 million a month without following procurement processes.
The hotel was used to house the headquarters of the SANDF Defence College and the SA National War College between February 2022 and January 2024.
In her written reply to parliamentary questions from DA MP Chris Hattingh, Defence Minister Angie Motshekga confirmed that “no consequence management measures have been instituted against any officials while pending finalisation of the investigation.”
“She noted the lease’s termination and the hotel’s acquisition but emphasised that recovery of funds, if needed, would only proceed once the probe determines if there was a genuine loss to the state and quantifies it.
Motshekga disclosed that R108,026,400 in costs were incurred since entering into the lease from February 2022 until the lease was terminated in January 2024.
This response echoes directives from former Minister Thandi Modise, who in 2022 instructed then-Secretary of Defence Sonto Kudjoe and SANDF Chief Lieutenant-General Rudzani Maphwanya to correct the irregularities and discipline those responsible.
Despite these orders, the board of inquiry—initiated in March 2022—has dragged on for over three years without resolution, raising questions of accountability.
Hattingh said, “His party vows to escalate the matter, pushing for the Standing Committee on Public Accounts (SCOPA) and parliamentary defence committees to compel full disclosure, fund recovery, and sanctions.
The irregularities were exposed by Auditor-General Tsakani Maluleke in her 2022 audit report on the Department of Defence.
Maluleke found no evidence of National Treasury approval for deviation from standard procurement rules, nor any documented delegation of authority to the Chief of Logistics to sign the lease on behalf of the department.
As a result, the entire R5 million monthly arrangement was classified as irregular expenditure, adding to the department’s growing tally of financial mismanagement.
The Auditor-General’s 2023/24 report further revealed R5.7 billion in irregular expenditure across the SANDF, up from R3.8 billion the previous year, part of a national crisis where government departments racked up R63 billion in fruitless and wasteful spending.
The St George’s deal became a symbol of these systemic failures, with critics pointing to weak internal controls, unauthorised deviations, and a lack of transparency under the Public Finance Management Act (PFMA).