‘R416m denied’ to Gauteng NPOs as Social Development deadline looms

Non-profit organisations (NPOs) are still in the dark over funding for their critical social services.

The Gauteng Department of Social Development (GDSD) was recently given multiple fresh deadlines, with a 4 December date set for a judge to check their progress.

The survival of some NPOs has been hanging by a thread as they struggle to receive clear feedback on limited funding as well as funds being completely withheld.

Some NPOs received more than requested

The GDSD has been silent about the adjudication process but did recently give a glimpse into where funding was being sent.

GDSD Member of the Executive Council (MEC), Faith Mazibuko, responded on Monday to a provincial legislature question posed to her by the Democratic Alliance (DA).

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Out of at least 178 NPOs touched on by the GDSD’s written response earlier this week, none received what had been previously agreed upon.

The GSD stated that 14 NPOs received funding despite not having service level agreements (SLAs) with the department or not having their agreements signed.

Additionally, 84 NPOs received less funding than requested, while 80 received more than their SLAs stipulated.  

‘Betrayal’ of the province’s vulnerable  

The DA had earlier this year submitted a Promotion of Access to Information Request seeking to view the adjudication reports for the NPOs, but have yet to see them.

“The MEC’s admission underscores the validity of the DA’s concerns regarding the mishandled adjudication process that commenced in late November 2023,” stated Refiloe Nt’sekhe, DA Gauteng Shadow MEC for Social Development.

NPOs have struggled with information throughout the process, with the DA relaying inconsistent addresses for submissions and signed SLAs which were later withdrawn as key stumbling blocks.

“The GDSD’s failure to execute the funding process for NPOs fairly and transparently represents a significant betrayal of the poor and vulnerable residents of Gauteng,” added Nt’sekhe.

New court order issued

The Gauteng Care Crisis Committee (GCCC) had already obtained a court order against the provincial department in May, which was then missed.

“The GDSD has been given deadlines to meet between now and early December. On 4 December we return to the judge,” GCCC’s Lisa Vetten told The Citizen.

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The new court order, announced on 15 November, requires the department to detail by 22 November the reasons for not funding 11 organisations.

The department is then required to pay successful applicants by December 2.

“If applications are declined, the GDSD must provide written explanations by November 30, enabling organisations to pursue appeals,” stated GCCC.

The court order, seen by The Citizen, lists 28 NPOs that had existing SLAs and the department is required to make payment to them by December 2.  

Lack of funding claims

Vetten stressed that many NPOs had been incurring debt to continue services under the belief that the GDSD would meet their obligations.

She added that GCCC calculations showed that NPO funding was reduced by R172 million in the previous financial year and that the GDSD returned R554 million from that same budget.

“Of that amount, R244.8 million should have been paid to NPOs for their services. This brought the total funds denied to NPOs to R416.8 million in 2023/24 alone,” GCCC stated.

The 2024/25 budget for NPOs is even less, with just over R1.9 billion allocated for the current financial year.

“MEC Mazibuko’s admission further vindicates our claim that the GDSD is solely responsible for the suffering endured by Gauteng NPOs,” concluded Nt’sekhe.

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