Gauteng Department: SANCA Thusong Funding Dispute Leaves Staff Unpaid

• SANCA Thusong, a non-profit providing substance abuse support, has faced a severe funding dispute with the Gauteng Department of Social Development (GDSD), leaving over 50 staff members without full pay for more than five months.
• The dispute arose after GDSD initially issued Service Level Agreements with unexplained budget cuts totaling R1.31 million for the 2026/27 financial year, despite prior funding approval.
• After SANCA Thusong lodged a successful appeal, new SLAs were signed in July, reversing the cuts and covering the full financial year, but significant payments remain outstanding.
• The payment delays forced SANCA Thusong to temporarily close its offices in June after exhausting its own resources, though staff continued to provide services without pay.
• The crisis has caused severe personal hardship for staff, including a social auxiliary worker who had to withdraw her daughter from school services and cancel her parents' insurance.

The protracted SANCA Thusong Gauteng funding dispute underscores the precarious position of non-profit organizations reliant on public sector NPO funding South Africa.

A significant `SANCA Thusong Gauteng funding dispute` has left over 50 staff members of the non-profit organization without full pay for more than five months, despite recent partial payments. SANCA Thusong, which has provided crucial substance use disorder support and prevention services since 1982 from its main Eersterust office and additional sites in Nellmapius, Refilwe, Zithobeni, and Rethabiseng, reported reaching over 160,000 people in the 2025/26 financial year. The organization, whose additional offices were opened at the specific request of the Gauteng Department of Social Development (GDSD), is still owed three months' worth of funding, even after some funds were disbursed on a Monday, five days following inquiries made to the department.

The financial strain has had severe personal consequences for `SANCA Thusong unpaid staff`. Mamokete Molete, a social auxiliary worker with 16 years of service, exemplifies the profound impact. Unable to cover basic expenses due to the lack of payment, she was forced to withdraw her nine-year-old daughter from after-school care and school transport services. Furthermore, her eldest daughter could not enroll for her second semester at Jeppe College in Johannesburg, and Molete had to cancel her pensioner parents' home insurance policy and cease their monthly financial support. Despite these personal hardships, Molete continues to purchase airtime and data to maintain contact with her clients, highlighting the dedication of the organization's personnel amidst the `Gauteng Department of Social Development payment issues`.

SANCA Thusong delivers three core programs supported by GDSD funding: out-patient and aftercare, prevention and awareness, and Ke Moja, the national government's drug awareness initiative. The ongoing `GDSD service level agreement dispute` has severely hampered these vital services. The organization's head of office, Elosine Aucamp, who has served SANCA Thusong for over 25 years, noted that payment delays from the GDSD were not an unusual occurrence, contributing to the organization's initial decision to continue operations using its own reserves.

The current `SANCA Thusong Gauteng funding dispute` escalated after all three of the organization's programs received funding approval for the 2026/27 financial year in March, with the year commencing on April 1. However, when the Service Level Agreements (SLAs) were subsequently issued by the GDSD—two in the last week of April and one in the last week of May—they contained unexplained budget cuts totaling R1.31 million. Specifically, funding for the awareness program was reduced by a quarter, and the out-patient program saw its budget cut by more than half. These reductions, according to Aucamp, would have necessitated the closure of almost all of SANCA Thusong's offices.

In response to these unacceptable terms, SANCA Thusong declined to sign the initial contracts and promptly lodged a formal appeal. The organization continued to operate without any GDSD funding until June, depleting its own financial resources in the process. By the end of June, the organization's funds were entirely exhausted, compelling a temporary closure of its offices as it could no longer afford essential operational costs like transport, fuel, and basic supplies for community support. Despite the temporary closure and lack of pay, staff members continued to provide services where possible, walking to client locations and offering telephonic support.

The appeal proved successful, leading to the signing of new SLAs by the end of July, a month into the second quarter of the financial year. These revised agreements reversed the earlier budget cuts and covered the entire financial year, including the period during which SANCA Thusong had operated using its own funds. The contracts stipulated that the organization should receive nearly R878,000 for each of the first two quarters. Anticipating imminent payment, SANCA Thusong resumed full operations. On August 6, Aucamp formally inquired about the expected payment date via email to the department, receiving a response from Lerato Bob, the GDSD's acting director for partnerships and financing.

The protracted `SANCA Thusong Gauteng funding dispute` underscores the precarious position of non-profit organizations reliant on `public sector NPO funding South Africa`. While some funds were eventually paid following external inquiries, SANCA Thusong remains owed a substantial portion of its allocated budget, highlighting persistent `Gauteng Department of Social Development payment issues`. The organization's ability to continue operating, even partially, during periods of non-payment speaks to the dedication of its staff and the critical nature of the services it provides to vulnerable communities.

This case serves as a stark reminder of the administrative and financial vulnerabilities faced by NPOs, even when formal Service Level Agreements are in place. The initial unexplained budget cuts and subsequent payment delays not only jeopardize the financial stability of organizations like SANCA Thusong but also disrupt essential community services. The need for robust and transparent funding mechanisms, coupled with strict adherence to contractual obligations by government entities, is paramount to ensure the continuity and effectiveness of the non-profit sector in South Africa.

This case highlights the significant contractual and administrative risks faced by non-profit organizations relying on government funding, even with signed Service Level Agreements. Lawyers advising NPOs should scrutinize funding contracts for robust payment terms, dispute resolution clauses, and contingency planning for delays, while those advising government entities should ensure strict adherence to payment obligations to mitigate legal and reputational risks.

Source: Original reporting via GroundUp