Minister calls on National DSD to re-open applications for ECD Stimulus Fund

I  note with great concern, the low number of  ECD centres and programmes in the Western Cape that have been received thus far  for the Early Childhood Development (ECD) Employment Stimulus Relief Fund.

Of the 3159 applications made from Western Cape ECDs, the provincial Department of Social Development received a total of 793 approved applications from the national Department of Social Development. The approved applicants were the ones that passed the eligibility criteria set by the national Department of Social Development.

“In light of the low number of approved applicants in the Province, I will write to the National Minister for Social Development, Ms Lindiwe Zulu, urging her Department to re-open the applications for the Early Childhood Development Employment Stimulus Relief Fund,” said the Western Minister for Social Development, Sharna Fernandez.

“If we are to meet the overall objective of the ECD Employment Stimulus Relief Fund which is to provide support to ECD workers it is critical that national government re-open this process.

As we approach Child Protection Week, I wish to re-iterate the importance that ECDs play in society. In addition to cognitive and emotional development a child experiences from being in an adequate ECD centre, these facilities are a safe haven for millions of children daily, whilst their parent are at work,” added Minister Fernandez.

The ECD sector has been particularly hard hit during the COVID-19 pandemic due to prolonged closures. Consequently, the Early Childhood Development Employment Stimulus Relief Fund is part of sustaining employment opportunities in the sector in light of the high unemployment rate and job losses caused by the COVID-19 pandemic.

The Western Cape government has received R53 million and has contracted an intermediary organisation, Foundation for Community Work (FCW), to assist with the processing of payments and verification of the stimulus relief package.

To date we can report on the following:

• 562 ECD sites (70%) from a total of 793 sites were processed;
• 1 334 staff payments were processed based on an initial 50% payment, and full payment to those that have been verified in between payments
• Total value of payments amount to R5.62 million (50%)
• The remaining 50% will be processed once confirmation of receipt of payments for the staff at ECD services are received.

In order to ensure that the right people are receiving the money, the Department is conducting verification in between the two payments to those ECD programmes and services that have qualified, and  experienced a few incidents where the funds that were earmarked for the ECD worker, was repurposed for other usage by ECD facilities. The Department is following up on such incidents and measures will be taken to rectify this.

It must be emphasised that unfortunately, the Department cannot process payments for applicants that have provided incorrect information that has not been updated by the ECD services. The Department cannot disburse funds to ECD services without being able to verify that:

• The ECD service exists;
• The staff employed have valid identity numbers; and
• The bank account that public funds are to be disbursed into for this fund is not a private bank account and is verified to exist in the name of the service that is making the application.

As a department, we will continue to demonstrate our commitment to extending opportunities to vulnerable people that will contribute towards lifting people out of poverty and empowering all people to build and lead lives of value and purpose. Through well-thought-through improvements to key programmes, we believe that such efforts will play a significant role in improving the lives of the poor and vulnerable of this province.