The Department of Social Development has recently announced the deregistration of over 6,000 non-profit organisations (NPOs) for failing to submit their required annual reports. Mpho Mngxitama, the acting deputy director general of welfare services, emphasized that this move is a crucial step to prevent NPOs from being exploited for illegal activities like money laundering and terror financing. The department has long been aware of non-compliance but had not fully enforced the law until now.
Mngxitama highlighted that the lack of consequences for non-compliance had allowed a cycle of neglect to persist, with many organisations failing to report suspicious activities. The department’s new approach aims to ensure that NPOs meet legal requirements, and the deregistration of thousands marks a firm stance in enforcing these regulations. This move is seen as a vital step in maintaining the integrity of the non-profit sector.
To strengthen enforcement, the department has engaged with various government entities that fund NPOs, requesting a list of the organisations they support. These departments have been cooperative, and the department is now working closely with them to ensure compliance. Any NPOs that fail to address their non-compliance risk losing their funding, a measure that the government believes will push for better accountability.
In addition to government-funded NPOs, the Department of Social Development is now turning its attention to public donors and funders. Mngxitama stressed that these donors must also ensure their funds are used appropriately and in compliance with regulations. As the department continues its crackdown, it aims to create a more transparent and accountable environment for all NPOs in South Africa.
