Allegations of fraud, mismanagement, gross negligence, misappropriation of funds and theft have been levelled against the former CEO, chairman and financial manager of GRIP.
Since April 1, 2018 an amount of about R454 000 was misappropriated, allegedly by CEO Sakina Mohamed, chairman Nthato Motlana and financial manager Jennifer Clements.
According to provincial police spokesman, Brig Leonard Hlathi, police investigations have started after a fraud case was opened.
The serious financial challenges resulted in GRIP having to let workers go, when paying them became impossible.
Part of the turnaround strategy meant that GRIP had to move from its offices in Ehmke Street back to its initial premises in Anderson Street.
“It feels as if they have raped GRIP,” said founder, Barbara Kenyon in an interview with Lowvelder. Kenyon said thanks to a kind benefactor they could return to their original premises. “But we will survive. The damage has been contained and we will keep doing our good work,” she added.
GRIP helps thousands of survivors of rape and domestic abuse, from young to old. It depends entirely on donated funds and fundraising initiatives.
Its projects include assisting survivors. It also provides care packs and various forms of assistance to those who have been raped, from the moment they arrive at the police or hospital until the prosecution process has ended.
GRIP walks the entire “road” with both rape and domestic violence survivors. After having resigned as trustee in late 2015, Kenyon was shocked when long-term donors towards the end of 2018 and early 2019 started announcing that they would end their involvement with GRIP. Most of them cited the alleged unprofessional and rude behaviour from Mohamed.
Kenyon stepped in and started investigating the financial records, and discovered that the damage done was much more than she had expected. Lowvelder investigated a host of allegations to compile this in-depth report on the rot that has set in at the public benefit organisation since five of the six trustees resigned between 2014 and 2017.
Bridget Mpande reports.
The trust
GRIP was founded in 2000. By 2013, six trustees had been registered, including Kenyon. By 2017, Motlana was the only remaining trustee. In practice, Carol Sanderson, Edwin Nkuna and Dolly Mbuyane were added as new ones. Both the old and new trustees believed that the change had been effected on the records of the Master of the High Court. This was never done.
According to Kenyon, Motlana and GRIP’s management committee took up the responsibility. In reaction, Motlana stated that he believed that they had done so. Therefore, he misinformed Kenyon regarding this issue in February.
The February meeting
After donors such as Chicken Challenge and Netherlands-based Kinderfondsmammas complained about Mohamed and wanted to withdraw their contributions, Kenyon met with Motlana to discuss these issues. Motlana declared that Kenyon was no longer a trustee, but she soon found that the organisation’s trust records had never been updated. Kenyon did her own digging and soon realised that GRIP’s funds had taken a serious knock.
Disciplinary action
Armed with the knowledge that she had legal standing to do so, Kenyon took up the reins at GRIP once again. Motlana was removed as chairman and board member.
After disciplinary hearings, both Mohamed and Clements were found guilty of dereliction of their respective duties and mismanaging funds. Clements tried to have the decision overturned, but eventually abandoned CCMA proceedings.
The way forward
“GRIP’s good work continues,” ensured Kenyon. “Throughout this ordeal, we have been blessed with kindness and hard work from volunteers who continue to keep things afloat,” she continued. The work that GRIP does has, over the years, become part and parcel of victims’ healing process and the state’s prosecutions. Kenyon and the GRIP team are devoted to keeping it that way.
Their resolve burns bright, although she shares her disappointment in some people and organisations.
“Some of the acts caused by Motlana, Mohamed and Clements involved negotiating deals with local enterprises. Some are very understanding, but others are still demanding payment from GRIP in terms of agreements that we believe had been unlawfully entered into,” said Kenyon.
Sakina Mohamed
It is claimed that Mohamed, who was the CEO, received a total of R232 000, of which R185 500 was paid into her
personal bank account.
When Kenyon questioned these payments, she was told that Mohamed went on an overseas trip to recruit donors and volunteers. But, it was a fruitless mission and nothing came of it. She went to Italy, Germany, Holland and England at a cost of R94 500 and a few local trips were also made.
Accounting records show Mohamed requested funds for paint, linen and a TV. A quotation was provided for bed
covers and base sets, but no receipts were submitted. A payment of R30 000 was approved and made into her private
account.
Yet on the same day, GRIP paid a company R31 000 for the same items. Kenyon said during Mohamed’s
disciplinary hearing at GRIP, she alleged that she could provide receipts for her expenses of company money, but this
was never done. Donors were also not satisfied with feedback and progress reports they received.
The newspaper contacted Mohamed for comment. She acknowledged that she received the queries, but failed to respond.
Jennifer Clements
Clements was the financial manager (also referred to as the accountant) since April 1, 2018, but refused to respond to media queries regarding her formal qualifications. It is alleged that she paid Motlana’s unauthorised travel expenses, paid him cash and also transferred funds into his personal account.
Payments were also made to Mohamed’s personal bank account. In total about R425 000 was misappropriated since she was employed, although her core function
was to safeguard the funds and do proper accounting.
In her statement to Lowvelder, Clements placed the blame on GRIP, saying no proper policies were in place.
She further claimed that its finances were in shambles when she arrived, as the previous year’s financial statements
had not been completed and statutory returns had not been submitted.
“The accounting/financial policies were out of date and needed to be updated as stated by the auditors,” she added.
Neither of the GRIP’s auditors nor former auditors responded to her claims. On the question of why payments were made without proper invoicing, she said, “Invoices/documents were only obtained after the payments in certain cases, because of the need to provide funds to run the healthcare
projects.”
In her statement to Lowvelder Clements reiterated that she did nothing wrong and was not guilty of misappropriation of funds.
Nthato Motlana
GRIP’s trust deed and financial policy are two sets of rules the former chairman allegedly broke. In terms of the trust deed, GRIP’s committee refers to those who work in execution of the trust’s objectives. This means that Mohamed and Clements functioned as committee members under Motlana.
In terms of the trust deed and GRIP’s financial policy, its activities should not enhance the economic self-interest of
any employee or person in a fiduciary capacity, except in the form of reasonable remuneration. “Motlana oversaw payments made out of GRIP’s bank account that contravened the financial policy,” said Kenyon. “This included
payments to himself.”
As they were never replaced as trustees, Kenyon added that Motlana should have consulted with them in taking financial decisions. It is alleged Motlana misappropriated more than R222 000 in donor funding in 2018.
According to Kenyon, R201 000 of this is unsanctioned and unauthorised travel expenses.
There were also cellphone account payments and travel claims for trips to Umtata, St Johns and Polokwane, yet trustees had not knowledge of his travelling agenda, nor did he provide post-travel feedback as policy requires.
In written questions to Motlana, Lowvelder posed all the allegations against him. During December 2018 (while GRIP’s offices were closed) Motlana’s son picked up a rental car paid for by GRIP in Johannesburg. Motlana claims that his son merely picked up the vehicle on his behalf as he was caught up in meetings.
When this was questioned in light of GRIP having been closed at the time, he chose not respond. Motlana said the allegations are motivated by malice and the desire to tarnish reputation. “There is simply no merit in
the allegations,” he said, adding: “I am satisfied that I discharged my fiduciary responsibilities diligently and in accordance with the governance instruments of GRIP.”
Motlana said as a non-executive member of GRIP he was never involved in management activities. In follow-up
questions, Motlana said the enquiries now became “an interrogation” and refused to comment.
“All my travel expenses which I ever claimed from GRIP were accompanied by receipts/invoices which were submitted to GRIP for reimbursement. This was management’s responsibility,” he said. Motlana said the failure to achieve a quorum posed a challenge to the management of the affairs of the board.
“I am satisfied that my removal as trustee of GRIP had nothing to do with my competence or capacity to lead. It was
driven entirely by loss of mutual trust between the trustees and the executive on the one hand and the founder on the other.”
Lowvelder will continue to investigate these and other angles of this developing story.
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