History: 

Since 2022 Department of Social Development (DSD) funded NPO’s in Kwa-Zulu Natal receive late payment of subsidies from the Provincial DSD. Despite promises to rectify this issue, late payments continue creating serious cash flow challenges and negatively impacting service delivery.

Governments obligation:

There is a legal duty of care and protection placed on Government to protect the weak and vulnerable in communities, including but not limited to children, the aged and persons with disabilities. Children entrusted to alternate care facilities have already experienced some form of trauma, violation, maltreatment, neglect, poverty and in many cases physical, sexual and/or emotional abuse, before being placed into Child and Youth Care Centres (Children's Homes) by the Children’s Courts.   Protecting the aforementioned children is of paramount importance. The effect of Government’s failure to timeously pay NPO’s charged with a duty of care is tantamount to secondary abuse. Children left without court-ordered care constitute a third layer of systemic neglect! The pressure on unpaid workers could result in professional misconduct.  Many older and disabled persons are cared for in Homes dependent on the payment of a Government subsidy. Without the subsidy they too would be subjected to possible violation of their rights. 

Issue:

The Kwa-Zulu Natal DSD is embarking on a new payment system from October 2023 but failed to pay subsidies to many NPOs for the months of August and September. This creates severe cash flows constraints for the affected NPO’s who still are required to provide a duty of care to those entrusted to them. The children, older persons and those with special needs will face further hardships with access to food, housing, medical care and access to basic needs.  

NPO extinction: 

Welfare organizations are rendered helpless and experience difficulties in meeting our obligations to our clients (children, disabled and older persons).

1.    Non-payment of subsidies = NPO’s unable to render the essential services they are mandated and entrusted with. Municipal bills and service providers cannot be paid. NPOs incur unaffordable unnecessary debt, as some supplier’s level penalties and interest against them. 

2.    Employees of NPO’s cannot be paid their monthly salaries. They cannot be expected to work without pay. They need their salaries to cover transport costs, to feed their families, cover medical costs, rental, etc. The Department of Social Development’s is responsible for these hardships and their frequent statements of “apologies for the inconvenience “when subsidies are paid late, are just not good enough. The Department is legally obligated to provide timeous payment of funds, when not paid it is a crisis AND a human rights issue! 

3.    NPOs inability to service their clients may result in their closure - contributing to the unemployment crisis in the country. Government has a legal obligation to fully fund the core service costs of NPOs. For children in need of care and protection, Government is legally obliged to fully fund, not subsidize such services, in terms of s105 of the Children's Act 38/2005. 

4.    Government has a duty to take reasonable measures to maximize the extent of its available resources to ensure funding is available for NPO services required by the most vulnerable.

Individuals affected:

As at the 10 October 2023 over forty-seven welfare organizations, 1714 staff and 422 826 recipients (children, older persons and individuals with disabilities) and counting were directly impacted by late payment of subsidy.  The KZN MEC and HOD only responded after pressure from the NPO Sector (https://youtu.be/waxk8D6L-bQ; https://youtu.be/zHs6AO_X8rM; ), with most of the affected organizations finally receiving their rightful payments of subsidies - almost one and half months after their services were rendered to vulnerable recipients! Despite media assertions to the contrary by the KZN Department of Social Development not all NPOs have received their August subsidy payment.

Whilst children, disabled and older persons are faced with this plight, the Department of Social Development Minister, Lindiwe Zulu admitted on 9 October 2023 that corrupt SASSA officials have looted 50 million from the needy (https://www.thesouthafrican.com/news/corrupt-sassa-officials-cost-country-r50-million-9-october-2023-breaking/). 

How does the NPO struggles affect you as a South Africans:

The Social Development Sector is subject to the principles governing public administration, governing National and Provincial Departments of Social Development, as well as all role-players involved in providing developmental social services to the public. Public funds are being used. 

Ways you can help and show your support:

1.    Sign the petition;

2.    Share the petition;

3. For those in KZN join us in a peaceful protest ( kznnponetwork@gmail.com)

Aim of petition:

1.    Raising awareness about the plight of NPOs in South Africa and particularly in KwaZulu-Natal, currently. 

2.    To obtain the support of South Africans locally and abroad 

3.    To submit to Parliament for their assistance with the following issues:

a.    To hold the Provincial Government of Social Development to account for the management of the provincial NPO budget and to ensure its timeous disbursement to mitigate cash flow issues currently experienced by NPOs.

b.    To extend the Occupational Specific Dispensation (OSD) which was granted years ago to DSD workers following the declaration of the profession as a “scarce resource” to NPO social workers who were excluded.

c.    To insist on Equal pay for Equal work

d.    In the 2022-2023 Financial Year after a battle with KZN DSD regarding lack of subsidy increases, a 5% subsidy increase was made possible by the National Department of Social Development. HOWEVER, only an 11mths subsidy increase was received. The NPOs want the remaining 1 month 5% increase owed.

We the KZN NPO Network appeal to South Africans to show their support by signing this petition.