South Africa: Third Court Order Against Gauteng Social Development Department

5 December 2024

Nine months into the financial year, some non-profit organisations still not paid

The Gauteng Care Crisis Committee, representing dozens of non-profit organisations funded by the Gauteng Department of Social Development, has obtained a third court order against the department.

Earlier this year hundreds of organisations were left unpaid for months after the collapse of the department's funding system.

The Gauteng Care Crisis Committee first took the department to the Gauteng High Court in May. Judge Ingrid Opperman ruled that the department had to pay organisations who had successful applications, and provide reasons for those who were not successful.

A second court order was secured in November, ordering the department to resolve by 2 December the remaining issues with dozens of organisations that had still not received funding.

But the Gauteng Care Crisis Committee believes the order was not fully complied with and called for another hearing.

In an affidavit, committee chair Lisa Vetten said that information provided by the department to the organisations that were still awaiting the outcome of their funding applications was insufficient and vague. Those who qualified for funding had not yet received contracts or payments.

Two organisations paid short were ordered to be paid in full by 29 November, but only one has been paid. The remaining unpaid organisation, Kadimah Occupational Centre, was issued a new contract on 2 December. The organisation still does not know when it will be paid.

On Wednesday, Judge Opperman handed down a third order, compelling the department to pay Kadimah Occupational Centre the funds owed to them by 10 December.

Opperman also ordered that seven organisations that are awaiting the outcome of their applications be provided with service-level agreements by 5pm on Wednesday, and that they be paid by 10 December.

Vetten told GroundUp that the organisations received agreements covering one quarter even though they had applied for the whole year. Two organisations received their agreements after the court deadline, which means they may have missed the department's end-of-year pay run.

A document submitted to the court by the department shows that there are more than 40 other organisations not represented by the Gauteng Care Crisis Committee who have signed agreements for the year but have not received any funds.

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