The Department of Cooperative Governance has announced that it will proceed with terminating the contracts of individuals aged 60 and older who are enrolled in the Community Work Programme (CWP), following a significant budget overrun in the 2024/25 financial year.
The department reported an over-expenditure of more than R100 million, with Chief Financial Officer Pankie Matomela revealing that by 31 March, the programme had spent between R175 and R135 million exceeding the allocated budget by 5.5%.
“We have issued contracts to participants which have led to overspending,” Matomela told Parliament. “As a result, we are taking steps to manage this over-expenditure.”
KwaZulu-Natal alone accounts for 7,533 participants aged 60 and above in the programme.
Matomela added that consultations have already been held with affected individuals in certain provinces, and internal departmental discussions are ongoing to consider the feedback received. “We are reviewing the submissions made during the consultation process to finalise the approach,” he said.
The CWP is aimed at providing part-time work opportunities in underprivileged communities, but mounting financial pressure has prompted the department to reconsider the inclusion of older participants.