Still no increase for NPOs

KZN NPOs will go without an increase in their funding from the Department of Social Development for the third consecutive year.

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Durban - KwaZulu-Natal non-profit organisations (NPO) will go without an increase in their funding from the Department of Social Development for the third consecutive year.

At its portfolio committee meeting on Tuesday, the department maintained there was no money to increase funding for NPOs.

This was despite Finance MEC Belinda Scott’s announcement in her 2015/16 budget speech in March that the department should ring-fence 6% (more than R150 million) of its R2.630 billion for increases for NPOs contracted to it.

A week later, the Daily News reported that the Finance Portfolio Committee chairman, Sipho KK Nkosi, and the Standing Committee on Public Accounts (Scopa) chairwoman, Maggie Govender, were irked by the department’s announcement that it had no money for the increase.

Govender said at the time: “I still need an explanation... These NGOs work in our communities providing social welfare services to the old and sick, including other social welfare duties.”

Nkosi had said the department had to reprioritise its budget to find the 6% or get the Treasury to find a way to raise the money.

By late Wednesday evening Nkosi and Govender could not be reached for comment by the Daily News.

Dr Rishigen Viranna of the DA said: “The reneging on the tariff hike for NGOs clearly shows that the premier is leading a divided cabinet where MECs are not consulting each other even on most important matters such as budgets and their allocations.

“This also tells us that the premier is not providing any oversight or leadership within his cabinet.”

Department spokeswoman, Ncumisa Fandesi, said the decision not to increase the funding in the current financial year was communicated by the department at NPO forums in November last year.

“The department has started a consultation process with the NPO sector on a possible revised system and terms for the 2015/2016 financial years which will hopefully ease the cash flow challenges.”

Head of provincial government communications, Thami Ngwenya, said the executive committee was engaged in a three-day lekgotla which started on Wednesday.

“All issues will be addressed at the lekgotla of which the premier is part of,” Ngwenya said.

Daily News