CAPE TOWN — A deepening National Youth Development Agency (NYDA) governance crisis has triggered urgent calls for President Cyril Ramaphosa to intervene, following explosive allegations of financial mismanagement, unauthorized legal spending, and the targeting of whistleblowers at the NYDA.
The political outcry follows a highly contentious joint parliamentary briefing where the NYDA board and Minister in the Presidency for Women, Youth and Persons with Disabilities, Sindisiwe Chikunga, faced intense scrutiny. ActionSA MP Alan Beesley, who was present at the briefing, described the proceedings as “shambolic” and “bizarre.”
The primary flashpoint involves a legal case brought against a Sunday Times journalist. Beesley revealed that the NYDA board chairperson signed an affidavit claiming she was pursuing the litigation in her personal capacity. However, it was later uncovered that the agency’s funds and attorneys were actually financing the lawsuit. According to Beesley, the NYDA board never discussed or approved the legal action, and Minister Chikunga was entirely unaware of it.
“She’s actually told a mistruth in her affidavit,” Beesley stated, arguing that using public state money to fight a personal legal battle under the guise of being a victim constitutes the fraudulent use of public funds. ActionSA has subsequently lodged an objection against the matter to protect press freedom.
The legal controversies are compounded by severe financial mismanagement. The agency, which operates on a R1 billion budget, is reportedly unable to meet some of its short-term obligations. It currently sits on net liabilities of R29.9 million and a growing deficit of nearly R70 million. Beesley highlighted that the agency’s travel bill for the year exceeded R30 million. In a stark example of this spending, the board chairperson and an entourage of seven traveled to New York on business-class tickets and stayed in luxury hotels, spending over R1 million.
This lavish spending stands in sharp contrast to the dire economic reality for South African young people. Youth unemployment for those under 24 sits at a frightening 60%, while those under 35 face a 44% unemployment rate. “This agency is supposed to be inspiring hope for the youth, but it’s actually doing the total opposite,” Beesley noted, calling the current state of the NYDA a “cesspool of corruption and incompetence.”
Further exacerbating the crisis is the agency’s response to internal corruption allegations. Instead of investigating the claims, the NYDA has reportedly hired a forensic investigator to identify and hunt down internal whistleblowers and media leakers. Beesley condemned the move, emphasizing that whistleblowers and a free press are essential to society and should be treated as heroes, not harassed or driven out of their organizations.
In response to the unfolding scandal, ActionSA has formally written to President Ramaphosa requesting direct intervention. Beesley argued that Minister Chikunga has been ineffective and must be held accountable by the President. “He needs to call her in and actually assess her work performance,” Beesley urged, adding that if she cannot control the board and manage the department, she should be removed from her position.
The scandal has also prompted broader reflections on the structure of the Government of National Unity (GNU). Beesley pointed out that the current administration has an unwieldy 40 departments, which dilutes accountability. He suggested that the government should consolidate ministries to create a smaller, more effective administration. For instance, he proposed that youth development could be focused within the Department of Trade and Industry, shifting the strategy from handouts to actual job creation.
Despite the NYDA board being appointed unanimously just 12 months ago with high expectations, Beesley warned that access to power and money has quickly eroded their ethics. As the NYDA governance crisis continues to dominate political discourse, all eyes are now on the Presidency to see how Ramaphosa will address the mounting failures within the youth development agency.
