Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Hendriëtte van Huyssteen
The DA is outraged about the non-payment of allowances to various Non-Profit Organisations (NPOs) in the province by the Department of Social Development.
During a meeting held on 22 August by the Portfolio Committee on Social Development, the MEC for Health, Hon. Susanna Dantje, and the acting Head of Department (HOD), Dr. Fezile Ngqobe, were questioned on the failure to process payments and finalise Service Level Agreements (SLAs) with several key organisations.
Among the NPOs in question are Rusoord Old Age Home in Vryburg, Klerksdorp Old Age Home, Childline Potchefstroom, and Trias Training Centre Klerksdorp. These organisations have submitted their business plans but have yet to sign their SLAs with the Department of Social Development. This delay led to severe financial strain on these essential services, jeopardising their ability to support the most vulnerable citizens in North West.
It is imperative to note that the Department’s Sector Funding Policy mandates that all financial transfers to NPOs be managed in a transparent, fair, and timely manner. The current situation directly contradicts these guidelines, placing undue stress on organisations that already operate with tight budgets. Many of these NPOs are at risk of closing their doors due to the financial burden imposed by the delays in receiving their allowances.
The acting HOD revealed to the portfolio committee that a total of 33 NPOs are still awaiting the finalisation of their SLAs and subsequent payments. According to the Department, the delay stems from irregularities discovered during audits of these institutions. These irregularities largely arise from the necessity for NPOs to borrow money from third parties or deplete their reserve funds to maintain operations while awaiting payments from the department. When payments were eventually received, these organisations repaid their loans, which the department now flags as an audit finding.
This situation reflects poorly on the department’s administration and raises questions about the effectiveness and efficiency of its processes. The fact that NPOs have been forced to rely on external funding to bridge the gap caused by delayed payments is a clear indication of systemic issues within the department. The HOD acknowledged that while some SLAs are being finalised, procedural guidelines need to be strictly followed to avoid such issues in the future.
The oversight committee has resolved to demand a comprehensive report from the Department of Social Development. This report must detail the status of all 33 outstanding SLAs, including timelines for when business plans were received and the specific actions taken by the department. This will provide clarity on the reasons behind the delays and the steps being taken to resolve them.
The Democratic Alliance remains committed to ensuring that the processes of the Department of Social Development are subject to rigorous oversight. We believe that just administration and prompt action are essential for the well-being of our province’s most vulnerable populations. The ongoing delays and mismanagement of funds are unacceptable and must be addressed immediately.