South Africa: Gauteng Premier Breaks Promise to Pay Nonprofit Organisations By 24 May

Source: allAfrica

South Africa: Gauteng Premier Breaks Promise to Pay Nonprofit Organisations By 24 May

The Gauteng Department of Social Development has not yet paid all the organisations it has signed agreements with in spite of promising to do so by Friday, 24 May. Organisations say they are running out of food and cannot pay staff salaries.

Despite promises by Gauteng Premier Panyaza Lesufi that they would be paid by 24 May, many nonprofit organisations across the province say they are yet to receive their subsidies from the provincial Department of Social Development.

In a meeting with organisations on 14 May, Lesufi promised that those that had concluded funding agreements with the department would receive their subsidies by 24 May. The new financial year started on 1 April, but many organisations have still not received subsidies for the first quarter of the year.

Delays in funding have forced several organisations to close and others to limit their work. A number of organisations are on the brink of closure. GroundUp is aware of many organisations with successful funding applications that have still not received service-level agreements.

Department spokesperson Themba Gadebe told GroundUp that a recent court order, compelling the department to finalise funding agreements by 30 May and to pay subsidies within seven days of the agreements being signed, "supersedes" Lesufi's promise to pay organisations by 24 May.

"The Department is compelled to stick to the timelines given by the court," said Gadebe.

The court order was obtained by the Gauteng Care Crisis Committee, a voluntary...