Durban - A crackdown by the Department of Social Development on non-profit organisations that don’t submit financial statements, have dysfunctional management structures or underpay staff, is looming, and those that don’t comply could lose government funding.
Ncumisa Ndelu, a spokesman for the department, said they were monitoring and evaluating organisations that were not meeting performance targets as set out in service level agreements.
However, she said, none of the organisations had received correspondence from the department yet regarding funding cuts.
Several non-profit organisation held meetings this week to discuss a way forward. Job losses and maintenance were their biggest concerns.
A task team representing the organisations is expected to see KZN Social Development MEC Weziwe Thusi on Tuesday to ask for clarity.
Gerhard Botha, a spokesman for the task team, said 13 organisations had been told verbally of the plan to reduce funding.
He said they had asked the department to write to them about the changes, but nothing had been forthcoming.
“This has caused panic among the NPOs whose future depends on government funding,” Botha said.
“We are in the dark as to when these changes will be implemented.
“At the moment, we are told there is no need to panic but on the other hand, we are informed of a possible cut in funding,” Botha said.
Althea Govender, of St Monica’s Children’s Home on the Bluff, said any funding cut would mean the home wouldn’t survive, as it cared for all 84 children with government money.
“We haven’t received any official notification,” said Govender.