Question NW3521 to the Minister of Social Development
02 January 2024 - NW3521
van der Merwe, Ms LL to ask the Minister of Social Development
In view of the KwaZulu-Natal nonprofit organisations network reporting that over 47 welfare organisations, 1 714 staff and approximately 422 826 grant recipients, including children, older persons, and individuals with disabilities, were directly impacted by late payment of subsidies as at 10 October 2023, what (a) measures are being taken by her department to ensure that such life-saving organisations receive their subsidies on time, (b) on what date will the unpaid subsidies from (i) August 2023, (ii) September 2023 and (iii) October 2023 be paid to organisations and (c) are the full relevant details in this regard?
Reply:
a) The Department has implemented new funding model with effect from October 2023. The new funding model entails paying NPOs in tranches on a quarterly basis. The tranche will be paid in April, July, September and January each financial year. This will ensure timeous payment of subsidies to NPOs
b)
- Subsidies for August 2023 were paid in full on 06 October 2023;
- Most of NPOs have been paid subsidies for September, October and November 2023. The remaining unpaid NPOs will be paid on 2 November 2023.
- October is included on the New Funding Model, final payment will be made on 2 November 2023.
c) There were delays in payment of subsidies due to cash blocking resulting from budget cuts. The funds are allocated by Provincial Treasury on monthly basis. The department does not have enough cash to pay for its contractual obligations and operational costs.
The department has requested funds for NPO subsidies to be allocated quarterly in order to pay NPOs in tranches to avoid late payments. The tranche payment to NPOs will be paid in April, July, September and January each year. The first tranche for 2023/24 has been effected in October 2023 and the next one will be in January 2024.