Several non-profit organizations (NGOs), including children’s homes, rehabilitation centers, and shelters in Gauteng, are on the brink of closure due to delayed subsidy payments from the provincial government. This comes despite assurances from the Department of Social Development that payments are being processed.
Payment Delays and Compliance Issues
Social Development Head of Department (HOD) Bongani Ngomane acknowledged the delays in a recent interview but disputed claims of a widespread crisis. He stated that 70% of NGOs designated for Quarter 1 funding have been paid, with the remaining payments expected to be completed by mid-June.
However, Ngomane cited non-compliance issues, particularly regarding the Sexual Offenders Register, as a major hurdle. “It’s very dangerous for the state to fund any organization working with vulnerable groups without proper clearance,” he said.
Budget Cuts and Outstanding Payments
The HOD also revealed that budget cuts in HIV/AIDS programs have further complicated funding allocations. While the department is negotiating with Treasury, some NGOs in this sector are still awaiting signed Service Level Agreements (SLAs).
When pressed on whether the department had underspent and returned funds to Treasury, Ngomane admitted that R100 million from the previous financial year remained unspent. He attributed this to legal disputes and departmental spending on goods and services unrelated to NGO funding.
NGOs on the Brink
Despite the department’s assurances, NGOs report severe financial strain. Two children’s homes in Gauteng, housing over 250 children, say they have yet to receive SLAs for the new financial year. One organization submitted proof of applying for the required J738 form (Sexual Offenders Register clearance) but still awaits payment, leaving them with only a month’s reserve funding.
Ngomane urged struggling NGOs to contact the department directly, emphasizing that shelters and childcare facilities are being prioritized. However, he dismissed claims by the NGO Crisis Committee that 600 payments are outstanding, insisting the actual number is lower.
Department’s Response
The department maintains that 818 SLA payments have been processed, with roughly 600 still pending. Ngomane blamed some delays on NGOs failing to submit required documents but pledged to address cases brought to their attention.
Criticism and Calls for Accountability
Critics argue that the department is shifting blame, particularly regarding delays linked to the Department of Justice’s clearance process. Ngomane defended the stance, stating he could not speak for another department but acknowledged inter-governmental meetings on the issue.
What’s Next?
With mid-June set as the deadline for full payments, NGOs remain skeptical. Many fear closure if funds do not arrive soon, leaving thousands of vulnerable beneficiaries at risk.
For now, the department’s message is clear: NGOs in distress should reach out directly. Yet, with lives hanging in the balance, the urgency for a systemic solution has never been greater.
