On 23 August 2011 the Minister of Social Development briefed the portfolio committee on the Department’s revised Policy on Financial Awards to NPOs. The Minister reported to parliament that the policy had been revised because it had not resulted in real transformation on the ground and that this had perpetuated service delivery blockages.

The more well-established and well-funded NGOs have been the primary beneficiaries of the previous policy and this has resulted in a lack of service delivery at grassroots level, especially in rural areas, thus entrenching the urban/rural service delivery inequity which marks the South African landscape.

Other problems with the previous policy included: insufficiently clear service specifications; lack of uniformity in implementing the policy; lack of alignment with current legislation; and lack of clarity as to roles and responsibilities of the different partners. Thus, a new Policy has been developed and will be implemented from 2012.

Areas that have been strengthened in the new Policy include:

• A recognition of the significance of partnerships;
• Improved relationships with partners;
• Greater identification, clarity and specificity around roles and responsibilities;
• More effective management of financing resources.

Both national and provincial departments would implement the policy. A national committee will be established to oversee the implementation of the policy, and a monitoring and evaluation system will be established.

The role of the Department of Social Development in terms of the new policy includes:

• The determination of priorities;
• Development of guidelines and relevant legislative framework;
• Monitoring and evaluation of services rendered by the NPO sector;
• Ensuring compliance with the policy, guidelines and legislative framework;
• Provide strategic direction for social service delivery
• Ensure the development and implementation of integrated inter-sectoral policies and programmes at provincial and national level;
• Ensure capacity and institution building; promote partnerships and linkages for effective service delivery.

The briefing stressed that the Department will take a more focused approach to facilitating transformation within NPOs which it will monitor. There was a further emphasis on the implementation of the policy to ensure that the needs of people living in rural areas and in poverty were met. The Minister stressed that local community-based organisations and NGOs working in rural areas must in the future work with local members of the community and involve them in their projects at an implementation, management and board level.

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Click here to view the Department’s presentation to parliament.