Public interest law centre SECTION27 have encouraged the Gauteng Department of Social Development (GDSD) to finalise all the successful non-profit organisations’ (NPOs) applications without any delays.
On Wednesday the Gauteng High Court in Johannesburg handed down an order compelling the provincial Department of Social Development to address the funding crisis faced by NPOs across the province.
GDSD was ordered to do so by no later than Friday and must make payments to those NPOs who have already signed their service level agreements (SLAs), by 31 May 2024.
This after NPOs in Gauteng took the GDSD to court because of delays in funding and subsidies.
SECTION27 welcomed this decision saying it was a huge win for NPOs and the beneficiaries they provide essential services to. It congratulated the Gauteng Care Crisis Committee and their legal representatives, Webber Wentzel, on this important decision.
For the past two months, SECTION27 has been engaging with the GDSD on behalf of several NPOs that offer social welfare services to some of the most vulnerable people in the province.
“In April 2024, the GDSD informed us that most of our clients’ funding applications were approved, and our clients were provided with SLAs. However, to this day, none of our clients has received payments in line with the SLAs that they signed and returned to the GDSD in April 2024,” the organisation said.
SECTION27 noted that over the past two months, various dates were provided by GDSD as to when clients could expect payment and, on each occasion, GDSD had failed to meet its undertakings.
Judge Ingrid Opperman went further and imposed judicial supervision over the GDSD to monitor the implementation of his order.
Last week Gauteng Premier Panyaza Lesufi promised to speed up payments, reverse budget cuts and fix issues with SLAs.
The department’s adjudication of funding was delayed this year. Many organisations have still not signed SLAs for the new financial year, which started on 1 April, while many organisations that have signed agreements have still not received their subsidies.
SECTION27 explained that while waiting for their payment, some NPOs were forced to sell their assets such as immovable properties and vehicles just to keep their doors open for these two months.
“…some also had to reduce the services they provide to the vulnerable population they serve. The High Court decision came at a time when these NPOs are on the brink of shutting down,” it said.
They were now vindicated, said SECTION27.
SECTION27 said this crisis was nothing but a self-constructed disaster by GDSD through its dysfunction, urging Social Development MEC Mbali Hlophe and the Gauteng government to address the dysfunction and to fix the current crisis and ensure this never happens again.
“There are strong parallels between what might occur if NPOs are not paid imminently by the GDSD and what occurred in the Life Esidimeni tragedy. Lives are on the line because of the GDSD’s administrative chaos and NPOs and the Gauteng Care Crisis Committee have been warning the GDSD of this for some time,” the organisation said.