Gauteng’s department of social development is about to line up charities with questionable governance which may see several nongovernmental organisations (NGOs) and nonprofit organisations (NPOs) left without funding.
Delinquent organisations are at risk but so, too, is the funding quantum presently disbursed across all organisations.
The department’s director for NPO funding and monitoring, Themba Msimanga, warned a delegation from organisations in Benoni this week their funding may be at risk as noncompliance with departmental regulations would see it stopped.
“This kind of behaviour [noncompliance] will not be tolerated as NPO monitoring is a legislative mandate,” Msimanga said.
He outlined the areas of compliance expected from organisations in a scorecard format, which included administrative check boxes such as having bank accounts, spending funds appropriately, including expenditure management and beneficiary benefits.
The sector scored a 60% aggregate on governance and a 64% tick on beneficiary outcomes. The department also scored negatively against organisations for unspent funds. Industry organisations and opposition parties were not happy.
Bronwynn Engelbrecht, the Democratic Alliance’s shadow MEC for social development, said the department had its own unspent millions.
“In the previous fiscal year, the department returned around R400 million to Treasury, money they didn’t spend on the poor and needy,” she said.
The department also suggested that there are emerging trends of threats and intimidation against monitoring officials. Bishop Les Sanabria, who chairs the Gauteng Social Services Welfare Development Forum, said the department’s allegations and subsequent threats were “nonsense”.
“It’s just a smokescreen that they are using to hold organisations accountable for the department’s lack of oversight and shortcomings,” Sanabria said.
He added there had been no legal action taken against any NGOs or NPOs on any of the allegations made by Msimanga and the department and he had yet to see any examples cited.
In its presentation, the department noted it would take criminal action against any fraudulent activities detected.
Engelbrecht said department plans to insource many NGO and NPO functions would bloat the public service further and cull a chunk out of an important social sector.
Sanabria suggested that the department may be shooting itself in the foot. He said it was a death sentence for care organisations, and that government relied on NGOs and NPOs to do the work they do not have the capacity to do.
The department seemed set on insourcing. Gauteng chief director for social welfare services Tebello Mkhonto said the project was informed by the approved service delivery model and organisational realignment.
Sanabria suggested that shaving the number of beneficiaries and retrieving functions would amount to another opportunity to issue fresh tenders and invite tenderpreneurship. Engelbrecht also questioned the department’s motive. None of the organisations were prepared to comment on the record.
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