Gauteng Beauty Academy's R63 Million Grant Under Scrutiny

An extensive investigation is underway, spearheaded by the Gauteng Department of Social Development, to scrutinize controversial grants amounting to over R63 million allocated to The Beauty Hub Academy in Johannesburg. This inquiry is part of a more expansive probe involving numerous grants issued by the department to non-profit organizations over the past two years, totaling nearly R114 million.

The current investigation's spotlight intensified following a GroundUp report that delved into the questionable financial support awarded to two entities, The Beauty Hub Academy and Daracorp, which specialize in beauty and agricultural training, respectively. This exposé has resulted in swift action, with the department confirming that several officials have been on the receiving end of "precautionary suspension."

The necessity for the investigation arose as the awarded funds stood in stark contrast to the department's common grant allocations, which average below R1 million per organization annually. This discrepancy has raised alarm, especially considering the critical budget reductions affecting HIV, elder care, poverty alleviation, and other social support areas.

For the 2023/24 financial term, The Beauty Hub Academy and Daracorp received lavish grants of R30 million and over R26 million, respectively. These figures shadow the previous year's hefty sums of R33.7 million and R23.9 million. The disproportionality of the funds distributed has sparked concern among other grantees who rely on departmental support for their operations.

The Gauteng Department of Social Development, under the leadership of MEC Mbali Hlophe, has expressed its commitment to the integrity of the funding process and to ensuring that all grants provide value for money. In response, the department has initiated steps to enhance oversight and accountability, including the formation of an independent Non-Profit Organisation Evaluation and Adjudication panel.

This newly established panel will focus on scrutinizing, evaluating, and adjudicating applications for funding from the non-profit sector, as well as carrying out independent monitoring and assessment of organizations that have received financial backing. The panel is a necessary innovation aimed at preventing maladministration and enhancing transparency in the distribution of funds.

Amidst the ongoing probe, which started in October and is expected to conclude in March, the department has disbursed over R2.13 billion to social service organizations during the 2023/24 financial year, maintaining its stature as one of the primary contributors to this sector. The previous year witnessed a slightly higher grant total of R2.36 billion.

The department remains steadfast in its pledge to support diligent non-profit organizations and to excise any malpractice and dubious funding maneuvers from its operations. This reflects the broader dedication of the Gauteng provincial government to root out corruption and inefficiency, thus safeguarding public resources and enhancing service delivery to those in need.