Government issues warning to non-compliant NPOs

The Gauteng Department of Social Development has sent a stern warning to non-profit organisations (NPOs) that do not comply or perform as expected, that their funds will be terminated and be reprioritised to other programmes in line with the Institutional Realignment Project (IRP).

This follows emerging trends of intimidation and threats to the department’s monitoring officials when they detect non-compliance in various NPOs.

Addressing NPO sector delegates on matters relating to monitoring and evaluation at The Lakes Hotel and Conference Centre in Benoni, Gauteng Social Development Director for NPO Funding and Monitoring, Themba Msimanga stated that this kind of behaviour will not be tolerated as NPO monitoring is a legislative mandate of the department.

The Gauteng Department of Social Development will be taking more corrective and punitive actions to recover funds that were misused and unaccounted from the individuals or board members as a collective. Furthermore, criminal actions against the identified organisations will be imposed,” said Msimanga.

The Department will introduce an online NPO management system in the 2023/ 24 financial year.

The system will, amongst others, incorporate online funding applications and an approval process, have electronic service level agreements (SLAs) and online reporting of claim forms, monthly and quarterly expenditure reports, and submission of supporting documents such as invoices, bank statements, and lease agreements.

Also read: NPOs urged to comply

The department will further introduce an institutional realignment project (IRP) that will seek to build state capacity and reduce over-reliance on NPOs on the constitutionally legislated mandates. The department was quick to assure the NPO sector that they will be consulted and that overall, they remain key in implementing the mandate of the department.

Gauteng Social Development Chief Director for Social Welfare Services, Tebello Mkhonto stated that the IRP project is informed by the approved service delivery model and the organisational re-alignment which must be funded mainly from within the department.

The department is in the forefront of dealing with these challenges through the implementation of various programmes designed to care, support, protect and empower the most vulnerable in our communities. Due to the shrinking budget, government departments are expected to do more with less.

“The current partnership model with NPOs is unsustainable as more resources are allocated to NPOs at the expense of developed state capacity. Service delivery by NPOs still remains largely at urbanised areas, and delivery of services often does not reach those who need them the most,” said Mkhonto.

“Factors that contribute to failures in service delivery include lack of governance and leadership, and institutional inadequacies. The Gauteng Department of Social Development has appointed hundreds of new social workers into the system over the past years. The increase in internal capacity must translate directly into increased state capacity. As way of example, over 150 social workers at GDSD have been trained, registered and ready to implement and provide adoption services to the community of Gauteng for free.”

The size and scope of the NPO sector have grown significantly since the 1990s.

According to the recent data from National Department of Social Development, there are 258 827 registered NPOs and 148 306 of those are non-compliant.

Gauteng province has 81 996 registered NPOs and 47 677 are non-compliant. Of the registered NPOs, 27 117 are registered to provide social welfare services. The Gauteng Department of Social Development has funded approximately 3 402 NPOs during the 2021/2022 financial year.