Gauteng NPOS that care for children, the elderly and disabled, are in a state of anxiety over fears that their government subsidies may be slashed in the new financial year (1 April).
While the provincial Department of Social Development denies this, the 2024/25 provincial budget confirms funding will be reduced by a hefty R223m.
July Mathebula, who manages the House Otto Self-Help Centre for quadriplegics in Kempton Park, said reductions in funding could force him to close down. He told GroundUp that if the centre’s application for funding from the department is unsuccessful, he won’t have enough money in reserve to continue operating beyond April.
House Otto has received government subsidies for decades. But beside the planned budget cuts, mystery surrounding new adjudication panels, and a general lack of communication from the department have caused anxiety that the cuts are imminent.
“We can’t get out of bed on our own, we can’t bath, we can’t cook. If we need to turn, we cannot turn,” said Chantelle Venter, who manages Remme-los, a self-help centre for quadriplegics and paraplegics in Primrose. Two of Remme-los’ six caregivers are funded by the Department of Social Development.
The Gauteng Department of Social Development paid R2.1bn in subsidies to non-profit organisations in 2023 – 39% of its total budget for that year.
The planned cuts have been criticised by the Gauteng Care Crisis Committee, a network of 50 organisations, and despite MEC for Social Development Mbali Hlophe attempting to allay rumours, the Treasury’s budget clearly shows that R223m less has been set aside for organisations in 2024 than in 2023.
A forensic audit of organisations receiving money from the provincial government was announced by Gauteng Premier Panyaza Lesufi in February 2023. At least four senior Department of Social Development officials involved in grant funding allocations have since been suspended.
Meanwhile, new adjudication panels, established to avoid fraud and corruption, are shrouded in mystery. A total of R15m, diverted from a programme to supply dignity packs for women, was set aside to fund the independent panels, but no information has yet been provided about the panels’ structure.
On 20 March, the department said adjudications would be completed by the end of March and funds would be allocated April-end, and that compliant organisations would not lose their funding.
But the NPOs told GroundUp they were concerned the criteria for compliance had changed without notice and that they would be found non-compliant after years of receiving subsidies.
The department did not respond to GroundUp’s questions about compliance criteria.
Sima Diar, programmes manager at the Nisaa Institute for Women’s Development, said that usually by November every year, there would be a panel discussion between organisations and department representatives to discuss reporting and targets. But no meeting was held last year.
Several organisations GroundUp has spoken to have received visits from department officials in recent weeks, who have been working off a new checklist and asking for documents never required before, said Trienie Drotschie, director of child protection organisation Tutela Family Care.
Emails sent to higher-ranking department officials had gone unanswered, Drotschie added.
The business plans organisations had previously submitted to the department were valid for three years. Tutela’s was valid until 2025, but in November, organisations were unexpectedly told to submit new plans.
The department said organisations whose funding is rejected will have the chance to argue their case. “If there are justifiable reasons to reconsider, the department will certainly do so.”
Tutela Family Care, with eight offices managing more than 2 000 cases of children needing protection from abuse, receives between 60% and 70% of its annual budget from the government. Most of the services would have to be stopped if government subsidies end by April.
The Nisaa Institute for Women’s Development – which provides a range of services to abused women and children – also depends on subsidies. About 90% of the salaries are department-funded, said Diar.
Gauteng Department of Social Development’s spokesperson Themba Gadebe did not respond directly to GroundUp’s questions.
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