The National Youth Development Agency (NYDA) is facing intensified scrutiny over its expenditure and governance, with its executive leadership confirming internal discussions about the appropriateness of maintaining its Sandton headquarters lease.
Executive Deputy Chairperson Bonga Makhanya stated that the agency’s newly appointed board, which assumed duties in August 2025, is reviewing legacy contracts—including office rentals and branch network costs—to determine whether funds could be better redirected toward direct youth service delivery.
“We walk into legacy contracts whether it’s head office or branches or whatever, including even staff personnel,” Makhanya said. “Those are all the issues that we’re looking at in terms of: is it appropriate for the NYDA to spend so much money on rent? Could we redeploy that money perhaps into service delivery?”
The review follows questions raised by Parliament’s Portfolio Committee on Women, Youth and Persons with Disabilities regarding the agency’s spending priorities. While Makhanya declined to comment extensively on parliamentary criticisms through media channels, he provided context on the Sandton office, which houses approximately 330–340 employees. He noted that rental costs of roughly 700,000 to 800,000 rand per month align with market rates for comparable state-owned enterprise premises, though the strategic location of the headquarters remains under internal debate.
The governance discussion unfolds against a backdrop of severe youth unemployment. Recent labor force data indicates approximately 345,000 jobs were lost in the fourth quarter of 2025, disproportionately affecting young South Africans. Makhanya emphasized the NYDA’s coordinating role across national, provincial, and local government to mainstream youth development policies, while acknowledging budget constraints necessitate partnerships.
“Our budget does not position us to satisfy all the needs of the youth,” Makhanya explained. “We need to join hands with other government departments and the private sector.”
He highlighted an upcoming launch of a national youth service initiative under the Presidential Youth Employment Intervention, which aims to create 100,000 paid opportunities for young people over the next 6 to 12 months. However, he stressed that sustained progress requires private sector investment and youth set-asides in strategic economic sectors such as mining, energy, construction, and transport.
When questioned about national austerity measures and their potential impact on employment-generating public sectors, Makhanya noted that the NYDA operates within fiscal directives from National Treasury and its overseeing department as part of the seventh administration. He suggested the agency could facilitate a policy dialogue to gather youth perspectives on economic direction, while affirming support for current government efforts.
The agency also addressed reports that it is procuring forensic investigation services related to internal expenditure disclosures. Makhanya confirmed internal deliberations are underway regarding responses to procurement matters, including a previously reported 1 million rand expenditure for an official trip to New York last year.
He firmly distanced the agency from any actions that could undermine whistleblowers or ethical accountability. “I don’t think that the NYDA would at any point in time want to find itself being inconsistent with the laws of the republic,” Makhanya stated. “We would not want to delegitimize or try to demobilize South Africans from calling out corruption.”
He specifically noted that using forensic investigators to identify whistleblowers would be “unlawful” and inconsistent with the ethical leadership young South Africans expect. Final determinations on these matters, he added, will be communicated through appropriate official channels once internal processes conclude.
The NYDA continues to balance operational reviews with its mandate to coordinate youth development initiatives amid heightened parliamentary oversight and public expectation for accountable, impactful service delivery.
