NPO asked to pay back funding

2015-12-16 09:20

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Pietermaritzburg - A non-profit organisation (NPO) based in Estcourt is opposing an application by the provincial government for the return of R10 862 847.

The application lodged on behalf of the KZN MEC for Social Development alleges that the NPO, Bhekuzulu Self Sufficient Project, failed to honour its undertaking to establish, develop and construct three early childhood development centres in the Uthukela and aMajuba district municipalities.

According to Nokuthula Khanyile, HOD for the Department of Social Development, an agreement was entered into with the Bhekuzulu Self Sufficient Project on April 22, 2012 in terms of which they would roll out the implementation of three early childhood development centres in KZN.

These were to be established in the Uthukela and aMajuba districts.

To this end the department paid the NPO a sum of R10 862 847,95 on March 3, 2014.

However, Khanyile alleges the NPO has not honoured its undertaking and the department now wants its money back.

Pietermaritzburg high court Judge Isaac Madondo was told this week that Bhekuzulu Self Sufficient Project is going to defend the matter.

As a result the case was adjourned sine die (for an indefinite period) pending finalisation of a trial date.

Recently the Department of Social Development won a high court order against the Mpilonhle Project, to repay more than R9 million in public funds which were similarly scheduled for the roll out and implementation of two early childhood development centres in the Umkhanyakude District municipal area and three others in Uthungula District Municipality.

The department provided funding of R9 052 373,29 for the project which was transferred electronically to Mpilonhle Project’s bank account on April 3, 2012.

Thereafter the NPO advised the department it wanted to withdraw from the project and undertook to refund the money, but did not do so.

Read more on:    pietermaritzburg  |  funding

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