Compliance Clause Reshapes NGO Funding Landscape in Gauteng

Non-profit organisations receiving provincial support in Gauteng must now ensure that public funds are not allocated to salaries for non-South African staff, under updated compliance measures introduced by the Department of Social Development. The policy also mandates that key governance roles—specifically chairperson, secretary, and treasurer—be occupied by South African citizens.

Deputy Director-General Tebello Mkhonto emphasized that the measure reflects enforcement of longstanding legal obligations rather than a novel policy shift. “We are not stopping the funding of non-South Africans. We are just complying with the legislative frameworks that are there,” he explained.

The directive draws authority from two central statutes: the Children’s Act 38 of 2005, which requires all individuals working with children to be screened via the National Child Protection Register, and the Criminal Law (Sexual Offences and Related Matters) Act 13 of 2021, which extends vetting obligations to the National Register for Sex Offenders for personnel serving vulnerable populations—including children, persons with disabilities, older adults, and individuals in shelter care.

These stipulations were formally included in the department’s 2025/26 funding call for proposals. To facilitate adherence, the department partnered with the Department of Justice to deliver targeted training sessions for NPOs on navigating vetting protocols and understanding statutory responsibilities.

A departmental audit of funded entities revealed approximately 20 foreign-national social service practitioners, eight non-citizens in management capacities, and additional foreign staff in general support roles such as security, maintenance, and transport. Mkhonto contextualized these figures against broader workforce data: more than 2,000 qualified South African social workers are currently unemployed, while the department directly employs roughly 2,200 social workers and the NPO sector engages approximately 870.

Clarifying the employment structure, Mkhonto noted that the department does not serve as the direct employer of social workers placed through NPOs. Instead, annual service level agreements are executed with NPO boards of management, which assume accountability for meeting funding conditions. Revised agreements now specify that NPO governing bodies must comprise at least 51% South African citizens, with the chairperson, secretary, and treasurer positions reserved exclusively for citizens.

For foreign nationals involved in direct service provision to children or other vulnerable groups, the department requires police clearance certificates issued by their home countries. NPO boards, acting as employers, retain the duty to authenticate these documents. Mkhonto underscored that this process ensures alignment with South African vetting standards, which rely on nationally issued identity documentation.

Addressing sector concerns about operational continuity, Mkhonto indicated that most NPOs have already executed compliant service level agreements. “Those who are excluded are in the minority,” he stated, adding that the department does not foresee systemic disruption to service delivery. Should positions become vacant due to non-compliance, unemployed South African social workers would be prioritized in recruitment processes.

On fears expressed by some organisations regarding potential closures or staff reductions, Mkhonto observed that the limited number of affected roles per entity—often just one or two positions—makes widespread operational impact unlikely. He reaffirmed that NPOs maintaining signed agreements and meeting compliance thresholds will continue receiving funding and delivering services as planned.

The department maintains that safeguarding vulnerable beneficiaries through rigorous, legislation-aligned vetting remains its paramount responsibility. Mkhonto concluded that while the transition requires adjustment, the measures ultimately strengthen accountability and protect both service recipients and the integrity of publicly funded social development work.

 

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