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NPOs in crisis as DSD fails to pay subsidies on time

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Dear MyPE

The Eastern Cape Department of Social Development has once again failed to timeously pay Non-Profit Organisations (NPOs) the subsidies they are due.

These struggling NPOs – that are responsible for the elderly, children and those with disabilities – have now gone almost four months without receiving any payment from the department.

Even though NPOs are expected to start receiving payments mid-July, these organisations have been suffering financially since the beginning of April, with most not receiving a single cent from the department.

The Democratic Alliance has raised this matter with the Eastern Cape MEC for Social Development, Siphokazi Mani-Lusithi, the HOD and various other departmental officials for many years, but still the department seems unable to avoid this happening.

For years the department has blamed the late payment of subsidies on the payment system that is being upgraded. The lack of managing the payment system and processes has brought hundreds of NPOs to their knees. They need assistance to ensure that they are able to pay staff and bills so that they can deliver crucial services to communities.

Even when these NPOs do receive a subsidy from the department, these funds do not cover all expenses, which results in these organisations being highly reliant on donations and fundraising.

Due to the Covid-19 pandemic and the resulting lockdown, fundraising events have come to an standstill, which has compounded the financial struggles of these institutions.

Still, the department has done absolutely nothing in strengthening its payment of subsidies processes – even though it is heavily reliant on NPOs to fulfil its mandate and provide the much-needed services to the vulnerable.

It is time the Department stops trying to shift the blame and accepts the problem doesn’t lie with the payment system, but from departmental mismanagement on all levels.

I will escalate the matter by writing to Premier Oscar Mabuyane to request his personal intervention to come to the rescue of our suffering NPOs.

The DA will not allow this uncaring and negligent Department of Social Development to shirk its duties while the Covid-19 pandemic is sweeping through the province.

Regards

Kobus Botha, MPL
Member of the Portfolio Committee for Social Development

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