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Gauteng government reaffirms commitment to funding for NPOs

The Gauteng Government provides an update on the signing of Service Level Agreements and issues related to NPO funding.

Gauteng Premier Panyaza Lesufi reaffirmed the government’s unwavering dedication to collaborating with NPOs following a pivotal meeting with sector leaders recently and the broader NPO sector respectively.

Engaging with various organisations in the NPO sector, the premier provided updates on the signing of Service Level Agreements (SLAs) and issues related to NPO funding.

In his discussions, the premier emphasised the indispensable role of the NPO sector in the care economy, particularly in safeguarding the vulnerable across the province.

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“After meeting with sector leaders, it became evident that certain challenges needed urgent attention, prompting further dialogue with the sector at large.

“Issues such as delayed signing of SLAs led to funding uncertainties and resultant disruptions were prominently highlighted.

“Regrettably, this strained the longstanding relationship between the sector and the Gauteng Department of Social Development,” the premier stated.

Lesufi reassured the sector of Gauteng’s steadfast commitment to repairing and strengthening this relationship.

The Gauteng Government announced several decisive measures, including:

• Immediate suspension of the 70/ 30 funding split

• Reverting to a full allocation of R2.4 billion to the sector, an increase from the allocated R1.7 billion

• Immediate payment to all NPOs with signed Service Level Agreements effective May 15, 2024, with finalisation expected by May 24, 2024

• Establishment of a task team comprising representatives from Gauteng Social Development, Treasury, and sector leaders to comprehensively review identified SLA clauses that are deemed challenging in the implementation of various programmes.

Each sector within the NPO domain will designate a representative for this task. This task team will report back in 21 days

• Quarterly meetings between Gauteng Government and the sector to address administrative bottlenecks and foster good working relations.

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According to the government, the Department of Social Development received over 1 700 applications, totalling an amount of R16.5 billion.

The premier said this exceeded the budget immensely and that funding will be made within limited budgetary resources, which is R2.4 billion.

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