Issued by: The Ministry for Welfare and Population Development
22 January 1997
STATEMENT BY WELFARE AND POPULATION DEVELOPMENT MINISTER GERALDINE FRASER-MOLEKETI ON THE PAYMENT OF SUBSIDIES TO WELFARE ORGANISATIONS
I am pleased to announce that the payment of subsidies to Eastern Cape private welfare organisations resumed yesterday (Wednesday), with the national Department of Welfare having ensured that outstanding subsidies for December 1997 have been paid. These amounted to R1,7 million.
This provides a limited, yet interim relief to welfare service organisations - children's homes, homes for the aged, and places of care for children (creches), and rehabilitation centres for alcohol abuse. I would, therefore, like to express appreciation to those organisations and individuals who are rendering such an important service to communities, as partners of Government.
The cash flow crisis in the Eastern Cape had affected beneficiaries as well as welfare service delivery in the province. A task team appointed by myself, which included provincial and private welfare service organisations, was formed to assist the provincial welfare department in managing cash flow problems.
Late subsidy payments in November 1997 due to the cash flow crisis, led to widespread anxiety in the private welfare service sector, with two children's homes in the former Transkei threatened with imminent closure. This has now been averted.
An agreement has been reached between the private welfare sector and the provincial department to reprioritise welfare services in the Eastern Cape on a regional basis. The aim is to promote maximum impact and cost-effectiveness, including efficient human resource utilisation.
Payments for the rest of the financial year will follow in due course. This is being handled by the Task Team.
ISSUED: Ms Geraldine Fraser-Moleketi, MP Minister for Welfare and Population Development