A grant worth more than R63 million over two years to the Johannesburg facility is currently being investigated by the Gauteng Department of Social Development.Photo: Masego Mafata
Two organizations that received approximately R114 million in grants from the Gauteng Department of Social Development over the past two years are being investigated as part of an investigation into the department's funding of non-profit organizations.
According to a media statement released after GroundUp last week revealed details of multi-million rand grants awarded to Beauty Hub Academy and Daracorp, the investigation has already led to the arrest of several agency staff. He has been placed on preventive suspension.
In response to further questions about the investigation, the ministry said four officials had already been placed on “preventive suspension” and “more individuals” had been identified as potentially involved.
The investigation targets “two or more of these” organizations, but the ministry was unable to provide details of the investigation, which began in October and is expected to conclude in March.
Grants to Beauty Hub, which provides training in beauty and beauty therapies, and DaraCorp, which trains smallholder farmers in rural and urban areas, will be significantly reduced in funding to organizations working on HIV and community care. It was carried out at the same time. , the elderly, poverty relief and other key areas of social support.
Beauty Hub and Darach Pope have been allocated over R30 million and R26 million respectively for the 2023/24 financial year. In the 2022/23 financial year, they received R33.7 million and R23.9 million respectively.
The size of the grant has caused an uproar among other grant recipients, with some wondering why the two organizations received funding from the Gauteng province when they have been allocated large sums of money to subsidize trainees. Questions arose as to whether other organizations in the UK received significantly less support in the form of grants to trainees. On average, the Department's grants amount to less than R1 million per organization per year.
In a media release two days after the GroundUp article was published, the department said it “takes note of the GroundUp article” and “wants to assure the public that: [organisations] The matter is part of an ongoing departmental investigation into nonprofit funding, and some staff members have been placed on preventive suspension. ”
A statement issued by Rwando Maziza, Gauteng MEC Office for Social Development, Agriculture, Rural Development and Environment, said: Allegations received by us regarding misconduct or questionable funding practices in the department. The investigation therefore aims to investigate whether funds are allocated correctly and to ensure that we are receiving value for money. ”
While the investigation is ongoing, the department has begun “to address the concerns raised by the oversight body and, as part of these measures, the establishment of an independent nonprofit organization review and adjudication board.” .
This committee “scrutinizes and reviews funding applications from the nonprofit sector and makes funding recommendations that are consistent with the sector's priorities and mandate.” In addition, during each fiscal year the panel requires independent monitoring and evaluation of nonprofit organizations that receive regular funding. ”
Advertisements seeking members for a “centralized and independent evaluation and adjudication panel” were published in early December last year.
Each panel will consist of a chair and four other members and will “consider, evaluate, adjudicate and recommend funding across five areas.”
during current [2023/24] In the financial year, the department awarded over R2.13 billion in grants to organizations providing social services, making it one of the largest, if not the largest, funders. It granted R2.36 billion in the previous financial year.
Mbali Hlophe, Gauteng MEC for Social Development, Agriculture and Rural Development, said: “We remain committed to working with and supporting hard-working non-profit organizations in our communities and through investigations we identify maladministration and questionable funding practices. “We aim to eliminate this,” he said in a media statement. .
This article was first published by GroundUp.
