Gauteng Social Development MEC Faith Mazibuko (left) and Finance and Economic Development MEC Lebogang Maile (right) at a press briefing on the funding of non-profit organisations. (Ihsaan Haffejee/GroundUp)

• Gauteng Social Development MEC Faith Mazibuko has apologised to non-profit organisations for the funding crisis that affected the sector in the recent past.
• Critical organisations such as women’s shelters and drug rehabilitation centres were affected by funding delays, forcing some to close their doors.
• The provincial government has committed to adjusting its budget for non-profit organisations to R2.1 billion from the current R1.9 billion.

Gauteng Social Development MEC Faith Mazibuko publicly apologised to non-profit organisations during a media briefing on Sunday.

This follows a crisis in the province’s non-profit sector in which hundreds of organisations providing essential care services waited more than two months for subsidies from the Gauteng Department of Social Development.

The department pays about R1.9 billion in subsidies to more than 700 non-profit organisations every year, according to GroundUp.

The delays were caused by drastic changes to the department’s funding process, including the appointment of external adjudicators. The process ultimately collapsed.

Among the organisations concerned were women’s shelters and drug rehabilitation centres that had no choice but to scale down their services or even close their doors.

Further delays were caused by forensic investigations. Forensic auditors were appointed by the department in 2023 to probe allegations of maladministration and fraud in the non-profit sector. More than 50 organisations were flagged in the investigations and had their funding suspended, but after the findings were challenged by the organisations, at least 34 of them have now been cleared and are receiving subsidies again.

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On Sunday, Mazibuko and Gauteng Finance and Economic Development MEC Lebogang Maile gave an update on the provincial government’s progress in finding a solution to the funding crisis.

Mazibuko highlighted the invaluable work done by non-profit organisations that take care of the province’s most vulnerable groups. She conceded that the past few months had seen the relationship between her department and the sector severely strained.

“We are not ashamed to say, with few exceptions, that we are proud of the work the organisations do. Like with any other relationship, things do fall apart, differences emerge, misunderstandings happen, trust is lost and sometimes break-ups happen. Despite all these, we as government and non-profit organisations cannot afford such a state of affairs,” she said.

Mazibuko, on behalf of the provincial government, then apologised and promised to prioritise improving the relationship between government and non-profit organisations.

“On all occasions, the department complied with the provisions of the court orders and no orders of contempt were issued against the department, as was reported by some media houses,” she said.

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Meanwhile, Maile said the provincial government was committed to ensuring that non-profit organisations are paid timeously so they can continue providing critical services.

“An undertaking has been made by the Gauteng government to reinstate the non-profit organisation budget to the 2023/24 adjustment budget of R2.1 billion. This represents growth of 13% against the 2023/24 actual expenditure to accommodate new applications for funding in the current financial year,” said Maile.

At least 13 organisations flagged by the audit are still under investigation, while six have been deemed non-compliant, he said.

Maile said the government was considering revising contracts with some organisations to extend them to a three-year term.

Mazibuko concluded by saying this was an opportunity for non-profit organisations to look for alternative funding partners.

“Government’s purse has not increased; we can’t sustain this,” she said.