A year of crisis as Gauteng Department of Social Development fails vulnerable citizens and racks up R215-million in irregular expenditure. Image: Corruption Watch.
(The Post News)– The Gauteng Department of Social Development Crisis has left hundreds of non-profit organizations struggling to stay afloat in one of the most chaotic financial years to date. From April 2024 to March 2025, the department recorded an alarming R215 million in irregular expenditure while failing to meet several critical targets meant to support vulnerable communities. This disaster has sparked outrage from advocacy groups, NPOs, and social workers, many of whom accuse the department of negligence and poor governance.
A Financial Storm in Gauteng
The annual report for the 2024/25 financial year paints a bleak picture of the Gauteng Department of Social Development crisis. Although the department received a financially unqualified audit opinion from the auditor-general, it came with several damning findings. The report revealed that the department underperformed on nearly every program aimed at supporting vulnerable groups, including the elderly, homeless, and victims of gender-based violence.
Collapsed Funding System for NPOs
At the heart of the Gauteng Department of Social Development crisis was the collapse of its funding system for nonprofit organizations. The department introduced a new adjudication process for funding allocation, which led to months-long delays. Many organizations went without funding for most of the first half of the financial year, forcing some to close and others to operate at minimal capacity.
Dozens of NPOs were initially told they would not be funded due to findings from a forensic audit. However, these decisions were later overturned on appeal, showing that the department’s vetting process was flawed. Food banks, which play a critical role in distributing food parcels, were among the hardest hit because they received no funding for several months.
Substance Use Treatment in Crisis
Another major fallout of the Gauteng Department of Social Development Crisis was its handling of substance use treatment programs. The department refused to pay several inpatient facilities flagged by the forensic audit. Even after the facilities were cleared, payments were delayed, forcing many to limit services. To make matters worse, two major rehabilitation centers operated by Life Healthcare were shut down without contingency plans, leaving patients stranded and communities without adequate treatment options.
Corruption Allegations
Adding fuel to the fire, former Head of Department Matilda Gasela, who signed off on several of these decisions, is facing corruption and fraud charges related to tender irregularities during her tenure at the Gauteng Department of Agriculture and Rural Development. The Special Investigating Unit (SIU) even obtained an interdict to block the payout of R3.3 million in pension benefits.
Political and Social Repercussions
The Gauteng Department of Social Development Crisis has sparked public outrage. Civil society organizations have called for urgent reforms, and some have even demanded a provincial inquiry into the department’s management practices.
Advocacy groups argue that the department’s failures have worsened poverty and inequality in Gauteng, leaving vulnerable citizens without crucial services. The delay in funding has had a direct impact on women, children, the elderly, and those struggling with addiction.
Government Response
After Gasela’s contract ended in April 2024, Bongani Ngomane briefly acted as Head of Department before being replaced by Phumla Sekhonyane in July. Sekhonyane has pledged to restore order and rebuild relationships with NPOs. She has promised to fast-track funding processes and strengthen internal controls to prevent future irregular expenditure.
The Gauteng Department of Social Development Crisis is a stark reminder of the importance of good governance in delivering social services. Unless urgent reforms are implemented, the province risks further deepening inequality and leaving its most vulnerable residents without the support they desperately need.
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