/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Portfolio Committee on Social Development calls on the National Treasury to consider the Gauteng Department of Social Development’s request for additional funding for Non-Profit Organisations (NPOs).

The Gauteng MEC for Social Development, Ms Faith Mazibuko, together with department officials, briefed the committee on the department’s sector funding policy, the number of NPOs whose funding was terminated in the 2023/2024 financial year and the reasons, NPOs' compliance, interventions taken to address non-compliance and the Auditor-General’s findings and recommendations.

The committee had been following media reports and received reports from members of the public on the state of NPOs in Gauteng after the department’s decision to terminate funding of some NPOs. As part of exercising its oversight function, the committee invited the MEC and the provincial department to brief it. It also invited the national department to brief it on the NPO Sector Funding Policy and the state of NPO non-compliance across provinces.

The MEC reported that the department was allocated a budget of R1.9 billion for the 2024/25 financial year for NPO funding. However, the financial requests from the NPOs far exceeded what was allocated to the provincial department. The MEC assured the committee that, together with the Gauteng Premier, they were committed to reversing the effects of the decision taken by the 6th administration. They held engagements with the NPO sector and apologised for the inconvenience. 

The department acknowledged that there were delays in disbursing funds in the first and second quarters of the current financial year, but in the third quarter, all the existing NPOs were funded. The MEC reported that the department has requested additional funds from the National Treasury in its adjusted budget to fund the NPOs that comply. To date, the province has paid 806 NPOs R1.3 billion.

The committee appreciated the frank and transparent briefing by the MEC and the acknowledgement of the devastating impact of the decision taken by the previous administration.  NPOs render essential statutory services on behalf of the Department of Social Development. Sustaining these organisations is vital for the well-being of South African people, particularly the most vulnerable. The committee also calls for the National Treasury, as it considers the Gauteng Department of Social Development’s request for additional funding, to equally consider additional NPO funding in other provincial departments.

“Financial support and proper capacitation of NPOs will ensure that these organisations continue to render essential statutory services that address various social ills the country faces. The partnership between the department and NPOs is particularly important given the report by the acting Director-General of the national department that NPOs do 70 per cent of the department's work,” said the Chairperson of the committee, Ms Bridget Masango.

The committee will continue its oversight role of monitoring the funding of NPOs across all the provincial social development departments.

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Social Development, Ms Bridget Masango