Food banks closed over corruption

Thousands face hunger after fraud

An estimated 68 000 people are likely to go without food in Gauteng as the five food banks that provide support and other services have lost funding after National Treasury discovered fraud.

This was announced by the Gauteng legislature’s portfolio committee on social development yesterday.

In its statement, the committee said it was deeply concerned about the abrupt closure of the food banks and termination of funding to food relief cooperatives.

No details were provided on the nature of the alleged fraud detected by Treasury.

Some of these cooperatives include those providing school uniforms and dignity packs to communities.

“The impact that these closures have on society are vast. Some of the impact means that 68 000 beneficiaries will go without food including 12 000 people living with HIV/Aids who were dependent on the food parcels, and 90 000 ECD [early child development] beneficiaries who are on food security will also lose out,” the committee said.

“It was recommended that food banks be closed down and a full forensic investigation take effect.”

National Treasury recommended that the Gauteng department of social development no longer transfer funds directly to NPOs to buy goods and services. Instead, there has to be a reclassification of all goods and services to be procured via the supply chain management system.

Portfolio committee chairperson Thuliswa Nkabinde said: “It must be noted the abrupt closures and recommendations by Treasury could have been handled better with time given to the department to notify the NPOs and consider different measures to remedy the situation, including servicelevel agreements that have already been signed between NGOs and the department.”

The committee recommended that alternative ways be found to help beneficiaries while the forensic investigation is taking place.

“The entire process needs to consider the investment already made by government on the empowerment of cooperatives. Should government decide to go ahead with the recommendations as per the National Treasury circular 21, the department must provide a plan of how existing cooperatives will be incorporated in the supply chain management processes to ensure continuation of [support to] NPOs.”