​Lerato Mailoane
Gauteng Non-Profit Organisations (NPOs) can sigh relief as Finance and Treasury MEC Lebogang Maile increases their budget by 13% to accommodate new funding applications. This follows months of non-payment due to non-compliance with government regulations.
During a media conference, Maile, alongside MEC for Social Development Faith Mazibuko, announced that the Gauteng Provincial Government (GPG) would reinstate the NPO budget to Male, said the 2023/24 adjustment budget of R2.131 billion.
"We are deeply committed to ensuring that NPOs operating within the Gauteng Province are paid timeously to ensure service continuation and seamless provision.
"Healthy communities are the foundation of strong economies. NPOs provide various services, from livelihood interventions to education, creating environments and developing skills that bolster the provincial economy. Thus, NPOs are a critical stakeholder in the provincial economy," Maile said. 
The province allocates close to R2bn to more than 700 NPOs on average. Over the past two months, the provincial government has worked diligently to ensure that compliant NPOs receive their payments. 
Between 20 May and 18 July, 3,031 payments amounting to R792m have been made to NPOs. 
In the first quarter, 1,483 transactions amounting to R353.7m were processed, while in the second quarter, which began in July, 1,548 transactions amounting to R441m were processed. 
He said some NPOs may have received multiple payments because of their multi-disciplinary services or programmes. 
The MEC said there had been delays due to non-compliance issues, which have resulted in delayed payments for some NPOs. Thirteen NPOs are currently under investigation, while six were deemed non-compliant. 
"The outcome of the investigation will guide the next steps as 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 yet to be found in the system, while six NPOs have since been closed or are deemed untraceable. 
"In two cases, duplicate payments were made, and the provincial treasurers are facilitating the resolution of this duplication. 
MEC for Social Development Faith Mazibuko said the seventh administration has 
prioritised improving the relationship with the NPO sector. She did, however, highlight the challenges of non-compliance.
"Compliance is one of the biggest challenges faced by the NPOs, and government cannot fund non-compliant NPOs. Not only will this be an audit query, but it would be a clear case of dereliction of duty and flouting of the Public Finance Management Act," said Mazibuko.
The Department was involved in various litigation matters regarding NPO Funding during the 2024/2025 Financial Year (FY). On all occasions, the Department complied with the provisions of the Court Orders, and no Orders of Contempt were issued against the Department, as some media houses reported.
The Department agreed to the settlements to ensure the beneficiaries' best interests in these litigation matters. 
Part of the Department's work is advocating for NPOs through the Inter-Governmental Relations (IGR) forum meetings. The advocacy will include issues such as lobbying Municipalities to be fast and reasonable in issuing compliance certificates to NPOs and waiving some costs that must be paid by NPOs in their quest to get relevant compliance certificates.
"We hope the sector will work with us to create an ethical, professional, efficient, and robust sector. This will ensure that we strengthen monitoring and root out corruption and maladministration," she added.