Delays in paying Eastern Cape’s NPO dependents

Thousands of young and vulnerable people who depend on about 2,800 non-profit organ- isations across the province, are having a bleak run-up to Christmas as government payments to these organisations run late.

Social development, the main funder of the province’s 2,802 NPOs, said they were suffering technical glitches as they had moved to a new payment system.

However officials were working hard to ensure all outstanding payments would be processed by Christmas.

Department spokesperson Gcobani Maswana said hardest hit by the delays were the early childhood centres, as well as youth centres for vulnerable children.

Social development MEC Dr Phumza Dyantyi said when the new NPO payment system was rolled out, “immense technical glitches were experienced which resulted in the delay of payments of NPOs for the first and second quarter”.

“The department, as a result, took a decision to put on hold the new system and revert to the old system and fast-track payments. This then had a cascading effect on the third quarter.

“As a matter of fact, the department is currently processing payments for the third quarter after a labour-intensive reconciliation of information was done, prior to the finalisation of payments,” the social development MEC said.

As more and more NPOs are credited for funding, the government has had to spread its budget over an ever-widening field, cutting back funds traditionally given to older, existing NPOs who, as a result, have experienced financial hardship these past two years.

Dyantyi assured managers of the centres that they would not necessarily have a “black” Christmas.

“The department would like to confirm that payments will be done on all remaining RUNs [payment process] of December, which means by Christmas all NPOs will be paid,” said Dyantyi.