Social Development

Question by: 
Hon Ntombezanele Bakubaku-Vos
Answered by: 
Hon Sharna Fernandez
Question Number: 
3
Question Body: 

With regard to the closure of three of the old-age homes of the Cape Peninsula Organisation for the Aged (CPOA) in the province:

  1. (a) What circumstances led to the closure, (b)(i) what is the number of old people who stay in CPOA-run homes and (ii) what is the breakdown of this number per old-age home and (c)(i) how will the closure of the three old-age homes affect the numbers in other old-age homes and (ii) how will the risk of the spread of COVID-19 be mitigated;
  2. whether the planned closures of the old-age homes will result in any job losses; if not, why not; if so, what are the relevant details;
  3. whether her Department was made aware of the planned closures before the final decision was taken; if so, (a) what are the relevant details and (b) when was her Department made aware of the planned closures;
  4. (a) what intervention did her Department take to assist with the situation and (b) what is the total breakdown of expenditure per annum that her Department incurred through transfers to the CPOA in (i) 2016, (ii) 2017, (iii) 2018, (iv) 2019, (v) 2020 and (vi) 2021 to date;
  5. whether there are any other organisations at risk of closing down for similar reasons as those of the CPOA; if so, what are the relevant details?
Answer Body: 
  1. [a] The Department has been informed by CPOA that a reduction in profit from their ‘life-right’ units and increase in vacancies in their independent living units impacted on cross subsidisation.  According to CPOA, over the past 10 years the organisation absorbed a deficit of R265 000 000 occurred in the running of their welfare homes, which, together with the financial impact of COVID19 management and the current economic climate, required them to stop operating the homes in order to remain financially sustainable. 

      [b] [i] 300

     [ii] Nerina place in Bishop Lavis accommodates 98 residents

Oakhaven Place in Heideveld accommodates 78 residents

Lilyhaven Place in Bonteheuwel accommodates 124 residents

[c] [i] CPOA has proposed that either the three closing homes [including the ownership of the properties] will be transferred from CPOA to the management of another NGO or NGOs who can continue to run the homes, or, if this is not possible, that the residents of the homes be moved into vacancies at CPOA’s remaining two welfare homes in Lotus River and Athlone. DSD will ensure that if this does occur, no overcrowding takes place. CPOA is not allowing any new admissions to the five facilities to help ensure there are vacancies for the older persons to be transferred.  CPOA has informed the department that they are currently in talks with other organisations to explore the feasibility of the above-mentioned option of having one or more of the 3 centres transferred to another NGO/s as a going concern.

[ii] The Department’s monitoring process confirmed that CPOA has applied all of the necessary Covid-19 protocols and procedures at their facilities. The organisation also operates a quarantine facility for Covid-19 infected residents a separate facility but on the same premises as CPOA Lotusriver Place.

[2] The Department is not aware of any job losses at the affected homes. CPOA has stated that staff members will be transferred to other CPOA facilities.

[3] [a] The CEO informed the Department at a meeting about the planned closures/transfers after the CPOA Board made the decision.

[b] 30 November 2020

           

  1. [a] The Department continues to pay monthly subsidies to CPOA and also provided extra funding to assist with Covid-19 expenditure. Information regarding organisations  currently funded by the Department and that might be interested in taking over the facilities was also provided.

[b]

Year

Oakhaven Place

Lilyhaven Place

Nerina Place

Total allocation

[i]] 2015/16

R 1 641 324

R 3 340 171

R 2 928 609

R 7 910 104

[ii] 2016/17

R 1 690 564

R 3 440 376

R 3 016 467

R 8 147 407

[iii] 2017/18

R 1 947 081

R 4 208 027

R 3 683 201

R 9 838 309

[iv] 2018/19

R 1 692 156

R 4 412 496

R3 841 800

R 9 946 452

[v] 2019/20

R 1 718 724

R 4 549 056

R 3 909 264

R 10 177 044

[vi] 2020/21

R 2 219 148

R 4 756 776

R 4 036 740

R 11 012 664

 

  1. The Department was informed on 11 January 2021 by the Head Office in Gauteng that Clareinch War Memorial, Pinelands will close down on 31 March 2021. No reasons were provided. The facility can accommodate 40 older persons whilst only 5 are currently funded by the Department. The 3rd quarter progress report submitted on 9 January 2021 indicated 15 x older persons were still at the facility who are assisted with finding alternative placement at other facilities.
Date: 
Friday, February 12, 2021
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