South Africa institutes investigation against Sustainable Program in Gauteng

On the recommendation of Treasury, the Department of Social Development decided not to renew contracts with the affected NPOs for the 2018-2019 financial year.

The Gauteng provincial government has instituted an investigation into alleged financial mismanagement involving its Sustainable Livelihood Programme.

This comes after the provincial government earlier this year uncovered gross financial mismanagement involving some of the Non-Profit Organisations (NPOs) that were contracted by the Gauteng Department of Social Development to manage the Sustainable Livelihood Programme.

Premier David Makhura in a statement said his office was inundated with complaints from representatives of affected NPOs after the non-renewal of their contracts with the provincial government.

He says he was told that the non-renewal would adversely affect the beneficiaries of their services, many of the poor and vulnerable.

"The Premier is convening a meeting with the relevant MECs and Heads of Department to receive a full briefing on the Sustainable Livelihood Programme," Makhura's office said in a statement.

The briefing will include measures being taken by the departments to ensure that the beneficiaries of the Sustainable Livelihood Programme continue to receive services while the government is addressing the issue of financial mismanagement.

On the recommendation of Treasury, the Department of Social Development decided not to renew contracts with the affected NPOs for the 2018-2019 financial year.

NPOs Bokamoso Development Centre, Fountain of Life, Carol Shaw, Siyabonga Africa and Agelang Sechaba were all affected.

"A full forensic investigation is now underway to establish the extent of the mismanagement of public funds intended for the poor. Appropriate action will be taken against anyone found to have been involved in the mismanagement of the funds," read the statement.

(With inputs from South Africa Government Press Release)