NPO in KZN starts petition over delayed subsidy pay-outs
An online petition has been started over the KwaZulu-Natal Social Development Department's delayed subsidy pay-outs to non-governmental organisations.
The KZN NPO Network represents 47 organisations, including those that look after children and the elderly.
It says they are tired of receiving payments two months in arrears.
The network says the system has been in place since last year.
The group's Femeda Shamam says it's been negatively impacting cash-flow management.
"We found that non-profit organisation could not meet their monthly commitments, especially with regards to paying their service providers, paying their staff members."
"Many organisations in the last couple of months also had to deal with a shortage of staff because staff did not have money to come to work because they were not paid their salaries on time."
The department says it's introducing a new tranche payment system for September, October, and November to most NPOs.
It says all funded NPOs should receive their payments by the end of the month.
Shamam urged the department to stick to the payment timeline and communicate any changes.
"So while they are saying that we are migrating into an advanced payment system, in effect, it is a combination because we're only receiving the funds for September now in October, but there is going to be an additional that will cover us for November as well."
