NPO funding: PAIA request and legal action needed to force Social Development’s hand  

The Democratic Alliance (DA) are exhausting all avenues in the fight for non-profit organisations (NPOs).

The party’s members in the Gauteng Provincial Legislature (GPL) have sought answers around the Department of Social Development’s (DSD) adjudication process but hit a brick wall.

DA Shadow Member of the Executive Council (MEC) for Social Development Refiloe Nt’sekhe has sought clarity on NPO funding and the department’s reasoning for certain allocations.

PAIA application to be submitted

The DA in Gauteng has submitted written questions for the provincial DSD’s previous and current MEC, but these have allegedly been ignored.

Feeling as if they have no other choice, Nt’sekhe’s party states that they will submit a Promotion of Access to Information (PAIA) request to compel the DSD to release the adjudication report.

“It is essential for NPOs and those they serve to know how the adjudication process was conducted and what its outcomes were,” stated Nt’sekhe.

ALSO READ: Gauteng’s NPOs call on new MEC to restore trust and funds

The DA believe that multiple NPOs have not received funding despite approvals and that some NPOs have received more than they were approved for.

Head of Communications for the Gauteng DSD Motsami Motlhaolwa acknowledged The Citizen’s request for comment on Tuesday, stating his intention to reply in due course.

Lost business plans

NPOs across the province have been supported legally by the Gauteng Care Crisis Committee (GCCC) which has fought for their rights under Sections 27 and 33 of the Constitution.

The GCCC represents roughly 100 NPOs in the province, and chairperson Lisa Vetten told The Citizen that about 30% of those NPOs have received no payment for the last six months.

Vetten explained the disputes stem from a change in Service Level Agreement (SLA) criteria for the 2024/25 financial year.

However, NPOs with existing SLAs based on the previous criteria have fallen through the DSD’s cracks and have been left in limbo.

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

Vetten said that among the excuses given by the DSD as to why the payment had not been made to existing beneficiaries included the department having lost the NPO’s business plans.

In April, the GCCC was granted a court order against the DSD which mandated the department to grant SLAs and pay beneficiaries by May, something the department has not fully complied with.

The result is that many NPOs have had to close, and have had their staff take them to the CCMA, with others working for six months without pay

“No thought was given to the ultimate beneficiaries of the service. Even if they were to sell all their assets, many have less than a month left,” stated Vetten.

Petition launched

NPOs are vital augmenters of social services, filling the gaps and providing specialist care in spaces left uncovered by the government.

Irregularities in the adjudication process, which was restarted in November, were reported by GroundUp in May.

DSD was forced to revise the process after the Auditor-General of South Africa found that NPO funding over R1 million had been approved by officials unauthorised to do so.  

“This department must maintain transparency and act in the best interests of the vulnerable Gauteng residents it is mandated to serve,” stated Nt’sekhe.

Vetten said the GCCC would be pursuing further legal action and the DA has also started a petition, to promote their PAIA request.