Premier Lesufi misled NPOs about funds reprioritisation

27 June 2023

The Gauteng Premier, Panyaza Lesufi and the Gauteng MEC for Social Development, Mbali Hlophe, have once again misled Gauteng NPOs about the reversal of the reprioritised funds.

This is because the department is restricted to virements of 8%. Virements would allow the department to transfer money between similar programmes.

To reverse the reprioritised funds which are more than 8%, the department needs to apply for approval from the national treasury.

The reversal of the NPOs' reprioritised funds should have happened immediately after the announcement by the Premier and MEC on the issue.

Even though many affected NPOs have received their funding, there is still a risk because this payment will be classified as fruitless and wasteful expenditure by the Auditor General.

Furthermore, this will have a detrimental impact on the current funding of NPOs in the province. This indicates that the Premier and MEC have misled the NPO sector about the reversal of the reprioritisation of funds.

The DA has tabled questions in the Gauteng Provincial Legislature to ascertain whether the department has sort approval to deviate from the 8% virements to address the reversal of the reprioritisation of funds.

We will continue to ensure that this department follows proper procedures in the reversal of the reprioritised funds to protect the vulnerable who are solely dependent on NPOs for survival.

Issued by Refiloe Nt’sekhe, DA Gauteng Shadow MEC for Social Development, 27 June 2023