PROVINCIAL TREASURY COMMITS TO PAYING NPOS ON TIME

By Phetoho Maja

• The Gauteng Provincial Government has pledged to reinstate the NPO budget to R2.131 billion for the 2023/24 financial year, representing a 13% increase from the previous year’s actual expenditure.
• Gauteng MEC for Finance and Economic Development, Lebogang Maile, emphasised the vital role of NPOs in addressing socio-economic challenges and contributing to the province’s economic growth.
• The Provincial Treasury has been actively processing payments to compliant NPOs, with over R792 million disbursed between 20 May and 18 July 2024, while resolving compliance issues for a few outstanding cases.

The Gauteng Provincial Treasury has reaffirmed its commitment to ensuring that non-profit organisations (NPOs) in the province receive timely payments, thus enabling the uninterrupted provision of essential services. The Gauteng Provincial Government (GPG) has pledged to restore the NPO budget to R2.131 billion for the 2023/24 adjustment budget, reflecting a 13% increase from the previous financial year’s actual expenditure. This adjustment aims to accommodate new funding applications in the current fiscal year.

Gauteng MEC for Finance and Economic Development, Lebogang Maile, highlighted the crucial role of NPOs during a media briefing in Sandton, Johannesburg. He noted, “The Department recognises the critical contributions of NPOs in addressing key socio-economic and socio-political challenges in our communities, as well as their significant impact on the province’s economic growth and development.”

Maile stressed that healthy communities are foundational to a robust economy, with NPOs providing a wide range of services, from livelihood interventions to health and education. These services help create a conducive environment for economic strengthening in the region. “NPOs are a vital stakeholder in the provincial economy,” he stated.

Over the past two months, starting from 20 May 2024, the provincial government has focused on ensuring that compliant NPOs receive their due payments. The Provincial Treasury has facilitated daily payment runs, resulting in 3,031 payments amounting to R792.02 million being processed by 18 July. This includes 1,483 transactions totalling R353.7 million in the first quarter (Q1) and 1,548 transactions amounting to R441.3 million in the second quarter (Q2). Some NPOs received multiple payments based on their multidisciplinary service programmes.

However, a few NPOs have faced delays in payment due to compliance issues. Currently, 13 NPOs are under investigation, 6 have been found non-compliant, and 23 applications could not be located in the system. Additionally, 6 NPOs have either closed or are untraceable. In two cases, duplicate payments were made, which the Provincial Treasury is actively resolving.

Maile assured that all compliant NPOs will receive their payments as per the binding Service Level Agreements (SLAs) with the provincial government. “We are committed to ensuring that these organisations can continue providing critical services to our communities,” he concluded.