Unpaid government subsidies leave Gauteng children’s homes in dire straits

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Several children’s homes in Gauteng are without necessities after the social development department failed to pay the biannual subsidies. 

Managers at the various facilities said they worried about longevity of the homes because they were battling to “keep the lights on”.

The Jakaranda, Louis Botha, Epworth and President Kruger children’s homes are nonprofit organisations (NPO) and have not received their subsidies for the third quarter — which should have been paid in October last year — and the fourth quarter, which started in January 2023. 

The Jakaranda and Louis Botha homes are in Pretoria and, between them, they care for 344 children aged three to 18. Charlene Grobler, the chief executive of the homes, said the subsidy from the department covered about 50% of their needs.  

“Towards the end of last year we were in urgent need of funds to pay staff salaries and buy groceries, food, toiletries and cleaning materials. We had to appeal for support from the community by launching the Jakaranda Children’s Home Christmas Emergency Fund campaign. We also hosted a Christmas lights festival where we made quite a bit of profit to sustain us for the start of the new year,” she said.

Grobler added that they were cautious about their expenditure to avoid a repeat of an emergency.  

“We are constantly following up with the department with regard to when we will receive our subsidies but the government has been reluctant in their response,” she said.

The Epworth Children’s home Germiston, which looks after 60 children, was unable to pay staff salaries in November and December. The director of the home, Penny-Ann Lundie, said the staff were required to work over the holiday period because they are seen as essential to the care of the children. 

“I worry about how long we will still be around because we have not received payments for the past four months. I am not sure I can hold on to my staff for much longer because they have all been limping their way through Christmas and the beginning of January.” 

Lundie added that the children are not aware of the dire situation because the staff took a decision to shield them from the circumstances. “While we play Russian roulette with the department, our community sponsors and support has been helpful and we are looking to keep this support on an on-going basis,” said Lundie. 

Department spokesperson Motsamai Motlhaolwa said only the Jakaranda and Louis Botha homes had inquired about the subsidy payments. He said Jakaranda would get half of its six-monthly tranche because not all compliance matters had been met. 

“For the record, where compliance is not met and service level agreements are not met, the department has the right to withhold payments until the NPOs are compliant,” said Motlhaolwa.

He said Jakaranda’s programme certificate had expired on 30 September last year. The NPO Act compliance letter was due to expire by 30 December 2022 because all nonprofits were given a grace period of nine months from their financial year end date.

“The NPO was made aware about the implications of the non-compliance particularly on the aforementioned requirements in various forums. The NPO has resolved their programme certificate that expired on 30 September 2022 only in November 2022, and the department will start the process of payment. 

“However, the NPO Act compliance remains unresolved, which means that only one quarter will be considered for payment and the fourth [quarter, January to March 2023] will remain withheld if the situation does not change,” said Motlhaolwa. 

Grobler says that all required documents were submitted on 14 June. The Mail & Guardian is in possession of the documentation.  

The President Kruger home is faced with the same problem. The manager, Kobus Foster, said they have been waiting for the past two months for their quarterly subsidy payment due in October. He said the home had not received any definite information about when it would receive the payment. 

“We usually receive payments in the first month of each quarter. It’s rather challenging to not know how long we should go without the subsidy. We are battling to do all the things we need to do with the children. Added to this is the living costs such as the water and electricity,” said Foster. 

Donors keeping the home afloat were the “heroes” in the situation, he added.