The Gauteng Provincial Treasury has committed to ensuring that non-profit organisations (NPOs) operating within the province are paid timeously in order to ensure the continuation and seamless provision of services.
To this end, an undertaking has been made by the Gauteng Provincial Government (GPG) to reinstate the NPO budget to the 2023/24 adjustment budget of R2.131 billion, which represents a growth of 13% against the 2023/24 actual expenditure to accommodate new applications for funding in the current financial year.
This was echoed by Gauteng MEC for Finance and Economic Development, Lebogang Maile, during a media briefing in Sandton, Johannesburg, on Sunday, 21 July 2024,
He said, “The Department recognises the crucial role that NPOs play in the province, not only in addressing some of the salient socio-economic and socio-political challenges confronting communities but also in contributing significantly towards the economic growth and development of the province.”
“The bedrock of a functional and strong economy lies in healthy communities. Through the broad spectrum of services that NPOs provide in multiple fields ranging from livelihood interventions to health and education services, they create the necessary environment and develop the necessary skills in our residents to contribute to the strengthening of the regional economy. Thus, to the Gauteng Provincial Government, broadly, NPOs are a critical stakeholder in the provincial economy,” said MEC Maile.
He added, “Over the past two months, beginning on the 20th of May, the provincial government has been hard at work ensuring that compliant NPOs are paid in order that they may continue to render the necessary services to our communities. In this regard, the Provincial Treasury has been hard at work facilitating payment runs on a daily basis.”
“Between the 20th of May and the 18th of July, 3031 payments amounting to R792.02 million were processed. In the first quarter (Q1), 1483 transactions amounting to R353.7 million were processed. In the second quarter (Q2), which began in July, 1548 transactions amounting to R441.3 million were processed. The number of transactions is per programme, as in some cases, NPOs provide multidisciplinary services, resulting in one institution receiving more than one payment based on their service programmes.
There are currently a few NPOs that have not been paid due to compliance issues. A total of 13 NPOs are under investigation, while 6 have been deemed non-compliant. The outcome of the investigation will guide the next steps in so far as payment is concerned. “Where matters of compliance are resolved, payments will be made. In addition to non-compliant NPOs, applications for 23 NPOs have not been found in the system, while 6 NPOs have since been closed or are deemed untraceable. In two cases, duplicate payments were made.”
“The Provincial Treasury is facilitating the resolution of this duplication. We are committed to ensuring that all compliant NPOs receive payments due to them as per the binding Service Level Agreements (SLAs) with the provincial government, in order that they may continue with the provision of critical services,” said Maile.
SOURCED FROM GPG WEBSITE.
