13 Gauteng NPOs under investigation, six shut down for being ‘unfeasible’

Gauteng MEC for Finance and Economic Development, Lebogang Maile, has revealed that the provincial government is investigating 13 non-profit organisations (NPOs) due to non-compliance issues.

NPOs were left in limbo amid social development department budget cuts and changes in the procedures for approving funding.

Maile and Social Development MEC Faith Mazibuko updated the country on the progress of NGO payments on Sunday.

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Maile announced that Gauteng had reinstated nine NPO budgets to the 2023/24 adjustment budget of R2.1 billion.

“The budget has been raised to accommodate new applications for funding in the current financial year,” said Maile.

“The department recognises the crucial role that NPOs play in the province, not only in addressing some of the economic and social challenges facing communities, but also in contributing significantly to the economic growth and development of the province.

“We are deeply committed to ensuring that NPOs operating in Gauteng are paid on time to ensure the continuation and seamless provision of services.

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“They create the necessary environment and develop skills in our residents to contribute to the strengthening of the regional economy.”

NPOs paid

Maile said that, beginning on 20 May, the province has worked to ensure compliant NPOs are paid.

Between 20 May and 18 July, 3,031 payments amounting to just over R792 million were processed. In the first quarter, 1,483 transactions amounting to R353 million were processed.

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In the second quarter, which began in July, 1,548 transactions amounting to R441 million were processed.

By 18 July, R441 million had already been paid.

“The number of transactions is the problem, as in some cases, NPOs provide multidisciplinary services. This has resulted in one institution receiving more than one payment,” said Maile.

As a result, a few NPOs have not been paid due to compliance issues, with 13 of them under investigation. Six have been deemed non-compliant.

“Once these matters are resolved, payments will be made.”

Applications for 23 organisations have not been found in the system. This as six NPOs have been closed due to feasibility issues, said Maile.

“In two cases, duplicate payments were made; the treasury is facilitating the resolution of these matters.”

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The province is exploring the possibility of reviving contracts with organisations to ensure three-year contracts are established.

“This will ensure long-term planning and provide necessary job security for those who work in these institutions.”