Finance Minister Enoch Godongwana defends the reprioritisation of R38.3 million by the Department of International Relations and Cooperation to cover the cost of the International Court of Criminal Justice last year without prior approval from the National Treasury
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Finance Minister Enoch Godongwana has come under scrutiny following the diversion of R38.3 million from the Department of International Relations and Cooperation (Dirco) budget to finance legal expenses associated with the case against Israel at the International Court of Justice (ICJ).
The decision arises from a prior expenditure incurred by Dirco, which totalled R38,381,031.63.
This amount covered essential legal fees, as well as costs for travel and accommodation for Dirco while awaiting approval from the National Treasury.
Godongwana had previously confirmed that the budget reprioritisation was made without the official request or sanction of the National Treasury as mandated under the Public Finance Management Act (PFMA).
In the latest development, ActionSA MP Alan Beesley wrote to Godongwana asking the specific provisions of the PFMA used by Dirco to cover the expenditure on litigation at the International Court of Justice without requesting approval from the National Treasury.
Beesley also wanted to know whether Dirco’s reprioritisation of funds complied with the PFMA’s prescribed limits on virements and shifting of funds.
In his response, Godongwana said the National Treasury’s engagements with Dirco on the matter have established that Dirco reprioritised planned expenditure of R38.3m on legal fees to enable it to provide for pressing ICJ related requirements.
“The reprioritisation of funds from items in the budget for goods and services towards unbudgeted for ICJ related activities within goods and services lies within the powers of the accounting officer of the Dirco so long as such reprioritisations are consistent with requirements of applicable legislation.
“In keeping with the requirements of section 3 of the 2024 Appropriation Act and Treasury Regulation 6.3.1(c) the funds in question were neither earmarked by the National Treasury nor specifically and exclusively appropriated by Parliament for certain purposes.”
Godongwana insisted that the funds were not moved from one programme to another.
“The funds were moved from certain items of goods and services in programme one to goods and services for ICJ related activities within programme one...The Dirco shifted funds from one area to another in a manner that was consistent with the requirements of the PFMA,” he said.
Godongwana further said the funds Dirco reprioritised towards the ICJ case were planned to be used to provide for expenditure relating to the transfer of officials to missions in the December 2024 transfer cycle.
“The budget reprioritised was originally planned to be used for the December 2024 transfer cycle, and related projected expenditure for the rest of the financial year.
“As such, the DIRCO says that no outputs before December 2024 had been planned to be provided for using the R38 381 031.63,” he said.
Meanwhile, the National Treasury has allocated an additional R37.2 million in the 2025/2026 budget for the ICJ case over the medium term to appoint legal representatives and cover the costs for interpreters and translators, and travel and subsistence.
Cape Times