R258 million unallocated funding leaves beneficiaries of 172 NPOs without social welfare services

21 August 2023

The Gauteng Department of Social Development’s (DSD) failure to allocate R258 million has left thousands of NPO beneficiaries without much-needed social welfare services and support.

DSD attributes the non-payment of the funds to the non-compliance of the NPOs, including the contravention of municipal laws, lapsed registration certificates, and being located in un-proclaimed land.

Many of these NPOs have about 100 to 300 beneficiaries and are now suffering due to a lack of funding.

Despite the non-compliance of these NPOs, the DA believes that DSD must implement a stringent plan to absorb beneficiaries to ensure there is no service interruption.

This information was revealed by the Gauteng MEC for Social Development, Mbali Hlophe, in a written reply to the DA’s questions tabled in the Gauteng Provincial Legislature (GPL).

Currently, the department claims that beneficiaries of these NPOs are being redirected to compliant NPOs, but no additional funding has been allocated to those NPOs.

MEC Hlophe has not been clear about what will happen to the unallocated R258 million.

Furthermore, there has been no communication on whether the employees of the non-compliant NPOs will be moved to the compliant NPOs.

The DA is concerned that the lack of funding for NPOs will have dire consequences for older persons, persons with disabilities, children, and HIV/AIDS beneficiaries.

The DA demands that MEC Hlophe fast-track the distribution of additional funds and staff to the complaint NPOs to avoid compromising the quality of care and services to the beneficiaries. The MEC must ensure that beneficiaries who have been moved to compliant NPOs have access to all services they have been receiving from their previous NPOs.

Issued by Refiloe Nt’sekhe, DA Shadow MEC for Social Development, 21 August 2023