Gauteng’s non-profit organisations (NPOs) say they are on the brink of collapse as the department of social development’s new R5.1m online funding system continues to fail, leaving hundreds of welfare programmes in limbo.
For years, NPOs providing critical services to vulnerable groups, including children, the elderly and survivors of gender-based violence, have battled chronic delays in funding from the provincial department. Many were forced to take out loans earlier this year to pay staff salaries after late payments disrupted operations.
“This is a clear battle between the Gauteng department of social development and the NPOs. We are no longer focusing on the children in our care but on survival,” said one NPO representative, who asked to remain anonymous for fear of losing funding.
“I feel like this is the department’s ploy to reduce the number of organisations on their database,” he said.
Another NPO director said: “None of the NPOs are able to use the system. I don’t know if we will be regarded as non-compliant because we haven’t submitted our business proposals, which means we won’t get funding.”
A system meant to fix delays has made things worse
In August, the department launched what it called an “innovative digital platform”, the NPO funding management system known as Grantor, to streamline applications and payments. Officials said it marked a “significant step” in eliminating long-standing administrative delays that have disrupted the timely disbursement of funds.
The Grantor system, which cost the department R5.1m, was meant to make things efficient. But when you try to submit a motivation for funding, it only allows 43 words, that’s just two sentences.
— NPO representative
However, NPOs argued that the system simply doesn’t work.
“The Grantor system, which cost the department R5.1m, was meant to make things efficient. But when you try to submit a motivation for funding, it only allows 43 words, that’s just two sentences,” said one NPO representative.
“It also doesn’t allow us to apply for more than one programme. It even populated a wrong bank account, and you can’t correct it. When you try to save, it says there’s an error,” she said.
Another organisation said they’ve been waiting since August for login details to access the system, but nothing has happened.
‘Teething problems and confusion’
Department spokesperson Motsamai Motlhaolwa said the new platform was not a new application system but an “automation of the familiar manual process”.
“From August 4 to 8, the department conducted awareness workshops across all corridors of the province with the NPO sector. Training sessions with representatives from each NPO were held from July to September to ensure a comprehensive understanding of Grantor,” he said.
He added the department acknowledges the system’s technical errors and that “these are receiving urgent attention”.
The department also confirmed that the system, initially tendered to Dimension Data and later ceded to Technolibra, was first used internally before being rolled out to external users.
‘Quietly retired’ system and exhausted NPOs
The Gauteng Care Crisis Committee (GCCC), which represents welfare organisations, says the department has quietly retired the new system, citing “teething problems”.
Chairperson Lisa Vetten said the platform failed to deliver on its promise of streamlining applications and payments.
“Instead, it created yet another round of uncertainty and chaos over the future of services to vulnerable groups in the province,” she said. “NPOs have wasted time attending multiple rounds of training, repeatedly contacting the department for support, and have been left feeling helpless, exhausted and confused.”
Vetten said the department has since issued a new funding template, but many organisations haven’t received it.
“This is worrying as the closing date is on October 15, and NPOs are left with just a week to prepare funding applications in accordance with a template that was only issued last week. This is the third year in a row the department has altered its system,” she said.
Portfolio committee oversight and ongoing funding woes
In March, parliament’s portfolio committee on social development conducted a three-day oversight visit to Gauteng to investigate NPO funding challenges. The committee found that national budget cuts had exacerbated the provincial department’s financial constraints, resulting in budget reductions in the 2023/24 financial year.
Committee chairperson Bridget Masango said: “Anything that affects the well-being of the poor and vulnerable will always get our utmost attention.”
The deputy director-general stated that the costly compliance requirements were in place to ensure NPOs met stringent municipal bylaws and regulatory standards.
He also called for a review of welfare legislation to address misalignments that complicate the funding and administration of the NPOs.
Masango agreed, saying the welfare framework must be corrected to ensure services to poor and vulnerable communities are “seamless and sustainable”.
Department promises to engage sector
Motlhaolwa said MEC Faith Mazibuko would hold meetings with NPOs across the province in the coming week to address concerns.
“We understand that some NPOs have faced technical challenges with our new online system, and we want to assure the sector that we are addressing these issues,” he said.
But for now, with deadlines looming and the new system still glitching, many NPOs say their survival, and the well-being of thousands of vulnerable Gauteng residents, hang in the balance.
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