Gauteng Social Development: SANCA Funding Dispute Leaves Staff Unpaid

• SANCA Thusong, an NGO providing substance use disorder support, faces a severe funding dispute with the Gauteng Department of Social Development (GDSD).
• Over 50 staff members have been unpaid for more than five months, despite some recent partial payments, with three months' funding still outstanding.
• The dispute arose after GDSD issued Service Level Agreements (SLAs) with unexplained budget cuts totaling R1.31 million for the 2026/27 financial year, which were later reversed after an appeal.
• The payment delays forced SANCA Thusong to temporarily close offices and deplete resources, while staff like Mamokete Molete endured significant personal financial hardship.
• New SLAs were signed in July, reversing the cuts and covering the full financial year, but payments for the agreed-upon quarterly amounts have yet to be fully disbursed.

This ongoing Gauteng Social Development SANCA funding dispute underscores the precarious financial position many non-governmental organizations (NGOs) face when government departments fail to adhere to payment schedules, leading to widespread operational and personal hardship.

A significant financial dispute between the Gauteng Department of Social Development (GDSD) and SANCA Thusong has left over 50 staff members without pay for more than five months, severely impacting critical substance use disorder support and prevention services. SANCA Thusong, an organization operating since 1982 from its main office in Eersterust, approximately 15km east of the Pretoria city centre, along with additional offices in Nellmapius, Refilwe, Zithobeni, and Rethabiseng (the latter three opened at the GDSD's request), reached over 160,000 individuals in the 2025/26 financial year.

While some funds were disbursed on a Monday, five days after inquiries were made by GroundUp, the organization reports that it is still owed three months' worth of funding. This ongoing Gauteng Social Development SANCA funding dispute underscores the precarious financial position many non-governmental organizations (NGOs) face when government departments fail to adhere to payment schedules, leading to widespread operational and personal hardship.

The current crisis began despite all three of SANCA Thusong's GDSD-funded programmes—out-patient and aftercare, prevention and awareness, and the national Ke Moja drug awareness programme—receiving approval for the 2026/27 financial year, which commenced on April 1. However, when the Service Level Agreements (SLAs) were finally received from the department in late April and late May, they contained unexplained budget cuts totaling R1.31 million. Specifically, funding for the awareness programme was reduced by a quarter, and the out-patient programme saw its budget slashed by more than half, a situation that Elosine Aucamp, the head of office with over 25 years at SANCA Thusong, stated would necessitate the closure of almost all their facilities.

In response to these unilateral budget reductions, SANCA Thusong declined to sign the initial contracts and lodged a formal appeal. Despite the absence of GDSD funding, the organization continued its operations until June, driven by a belief that the funds would eventually materialize, as payment delays from the GDSD were not an uncommon occurrence. By the end of June, however, the organization's resources were completely depleted, forcing a temporary closure of its offices. This meant they could no longer afford essential operational costs such as transport, fuel, and basic supplies to serve the community. The appeal proved successful, and by the end of July, new SLAs were signed, with the budget cuts reversed and covering the full financial year, including the period SANCA Thusong operated on its own funds. These agreements stipulated payments of nearly R878,000 for each of the first two quarters. Expecting imminent payment, the organization continued its work, with Aucamp emailing the department on August 6 to inquire about the payment schedule, receiving a response from Lerato Bob, the acting director for partnerships and financing, regarding the funds.

The protracted Gauteng DSD payment issues have exacted a severe toll on the dedicated staff of SANCA Thusong. Mamokete Molete, a social auxiliary worker with 16 years of service, describes her role as a 'charger' for clients struggling with addiction, conducting site visits in high-risk areas like drug dens and leading door-to-door awareness campaigns in often dangerous environments. As a mother of two, the lack of her salary has forced her to withdraw her nine-year-old daughter from after-school care and school transport services, and her eldest daughter was unable to enroll for her second semester at Jeppe College in Johannesburg. Furthermore, Molete had to cancel her pensioner parents' home insurance policy and cease her monthly financial support to them.

Despite these profound personal hardships, Molete continues to purchase airtime and data to maintain contact with her clients, embodying her sentiment that 'Social work is all about care, but nobody cares for us.' This dedication is mirrored across the organization, where staff continued working without pay, providing services by walking to necessary locations and offering telephonic support when offices were temporarily closed due to the South Africa NGO payment dispute. The ongoing social worker unpaid salaries Gauteng highlight the critical vulnerability of essential service providers to governmental payment delays and breaches of GDSD Service Level Agreements.

This case highlights the significant financial and operational risks NGOs face due to delayed payments and potential breaches of Service Level Agreements by government departments. Legal counsel for NGOs should review funding contracts for robust payment terms and dispute resolution mechanisms, while compliance officers must monitor cash flow and contractual adherence to mitigate operational disruptions.

Source: Original reporting via GroundUp