Aids lobby group Treatment Action Campaign (TAC) is not closing down, the health department said.
Spokesman Fidel Hadebe said in terms of binding agreements between the department and NGOs receiving funding, it was required that all such organisations comply with the set requirements which include compliance with the Public Finance Management Act (PFMA) in their reporting.
He said payment to TAC was delayed due to issues relating to their financial report.
Donors want to know how the money is spent. We cannot just give money where there is non-compliance. We must be accountable, he said.
Health dept mindful of TAC work
Hadebe said officials of the department were working closely with the TAC to clear outstanding reporting issues, with the aim of ensuring that the TAC continued with its work.
"The department is fully mindful of the important work that NGOs are doing in the fight against HIV/Aids and TB and will not under any circumstances undermine such work through unnecessary administrative systems."
TAC reported that it faces possible closure because of a lack of funds.
In July, the organisation failed to receive its R6.5 million payment.
Primarily due to poor administration by the primary recipient of the payment, the national department of health, the payment... continues to be delayed, it said in a statement.
Hadebe said all the systems that are currently in place to govern the department's relationship with NGOs including TAC are geared at ensuring prudent management of all donors funding including from Global Fund.
(Sapa, November 2011)