- The Isiqalo Youth Fund had R30-million available in 2024/25 but only paid R17.1-million to 22 beneficiaries across the Eastern Cape.
- Democratic Alliance leader Vicky Knoetze said the underspending was indefensible as unemployment reached 41.2% and expanded unemployment went above 50%.
The Eastern Cape returned R8-million meant for young entrepreneurs while nearly half the province’s people could not find work.
The Isiqalo Youth Fund had R30-million available in the 2024/25 financial year. Only R17.1-million was paid out to 22 beneficiaries.
The rest was rolled over because of slow administration and delays.
In the third quarter of 2025, the Eastern Cape’s official unemployment rate stood at 41.2%. Expanded unemployment went above 50%. In non-metro areas, nearly six out of ten people were without work.
Premier Oscar Mabuyane confirmed the underspending. The 22 businesses that received money created just over 100 jobs at an average cost of about R89,000 per job.
Democratic Alliance provincial leader Vicky Knoetze said the underspending was indefensible. She said it made no sense to return money when young people were desperate for opportunities.
Oversight visits last year found serious problems at funded projects. These included uneven spread of money between districts, incomplete buildings, weak technical support and poor checks on whether businesses were operating.
In some cases, inspection teams were blocked from seeing full project sites. Workers were not present and some businesses were based in unsuitable buildings.
“These findings point to systemic weaknesses in monitoring, accountability and post funding support,” Knoetze said.
The Premier said no misuse of funds was found. But Knoetze questioned whether the controls were working. She said there was a clear gap between reports on paper and what was happening on the ground.
Knoetze has written to the portfolio committee chairperson asking for a full report. She also plans to ask the Auditor General to review the fund.
“Young people in this province need opportunity, urgency and competent governance, not selective handouts with no accountability,” Knoetze said.
Pictured above: A need a job sign.
Image source: Pexels
