Issued by: Gauteng Provincial Government
18 June 1998
A range of reasons exist for recent delays in the Gauteng Department of Health's subsidy payments to feeding schemes - and in many cases non-governmental organisations themselves hold the key to unlocking funds which have been approved but not paid out.
The Health Department acknowledges these administrative and restructuring problems and we are not insensitive to the fact that they actually cause hardship to people in need.
Despite these factors, the Allocation Committee has so far approved 1998/9 funding for 117 organisations on the East Rand alone - for a total amount of about R7-million.
The "debt: factor
However, many of the organisations which applied for funding for 1998/9 still have debts to the Department for the last year. This stand in the way of them accessing funds allocated.
For instance, in the first sitting of the Allocation Committee, 41 applications for funding from the East Rand were approved and R2,57-million allocated. But only 11 of the organisations have a clean slate in terms of owing this Department money. These 11 organisations have received their cheques but the remainder will not be able to access the rands earmarked for them until they have repaid the money which is owed.
The "debt" arises from the fact that the Department advances about 25% an organisation's total annual grant at the start of the financial year. This enables the organisation to function smoothly, with a modest reserve. For the rest of the year, funding operates on reimbursing organisations for expenses incurred in providing foodparcels. However, the organisation's reimbursement claims are not fully refunded - a portion of the advance payment is deducted from these claims, so that by the end of the year the advance has been fully "repaid". Obviously, organisations which fail to make regular claims for refunds never pay off their advances.
The Department operates on a finite budget derived from tax-payers. Furthermore, it must be satisfied that funds are being appropriately used and accounted for. It cannot, therefore, repeatedly "roll over" amounts owed to it by community organisations.
Failure to repay the advance funding is particularly marked on the East Rand, where 64 organisations are in this position. This undoubtedly has had an adverse impact on the flow of money into that area.
NGO Summit.
There is no desire by the Department to side-line NGOs.. In fact, exactly a week ago, the Department held a "summit" with civil sector organisations to try and thrash out a suitable policy for this area. Approximately 200 NGOs and community groups working in various health fields (for instance, mental health, nutrition, HIV/AIDS) attended the summit and provided valuable insights into their needs.
Among the hotly debated issues was how to provide for NGO representation on funding structures without creating the situation where some organisations are both "player and referee" - that is, the recipient of funds which they help allocate.
We are committed to finding a truly equitable funding policy and a more efficient mechanism for allocating funds, because we acknowledge that true partnership with non-governmental groups rests largely on this factor.
Dr Carol Marshall Chief Director for Health Programmes
Released by the Directorate for Health Promotion & Communications Inquiries: Jo-Ann Collinge 082 574 5510