The local branch of a church probed for fraud was behind a bid for Capital Radio, writes Suzy Bell
Quima Investments last week failed to win its licence bid for Capital Radio because it neglected to reveal vital information to the Independent Broadcasting Authority (IBA), including details of a controversial backer.
The consortium was slapped on the wrists for side-stepping the fact that its R12- million licence fee came from a single local funder – the Universal Church of the Kingdom of God. This church is headquartered in Brazil and has been fingered for fraud, tax evasion and extortion in that country.
The Catholic World News (CWN) – a respected media house producing daily news briefs – reported recently that “the Brazilian government ordered an investigation of [the founder of the church] the Reverend Edir Macedo and his Universal Church of the Kingdom of God”.
The Brazilian attorney general said his office suspected Macedo of evading taxes, defrauding his followers, and taking money from a Colombian drug cartel. The church reportedly earns $800-million a year and owns a TV network, a bank, 35 radio stations, four newspapers, and other businesses. It has 300 churches in 33, countries including the United States.
Mark Rosin, the lawyer spearheading Quima Investments’ bid was suprised by the allegations against the mother body of the company’s major backer. “I have no intimate knowledge of the workings of the Universal Church of the Kingdom of God. I do know they operate in Durban and Johannesburg and elsewhere internationally.”
The church’s South African lawyer Peter le Motte says all the money behind the bid was raised locally and that its accounts were regularly audited by a top firm.
Earlier, the IBA objected to the “devious” omission of information related to ownership, control and financial viability of the consortium applying to run Capital Radio.
Rosin this week added: “We understand their concern, but the minister’s office never asked who the funder was. It was never part of the questionaire. They wanted to know who the applicant was. The council of the IBA later asked us, and we gave clarification.”
Meanwhile Macedo has consistently denied allegations of fraud and extortion and is continuing to construct a worldwide media empire.
A separate report by the Christian Research Institute (CRI) said the Universal Church of the Kingdom of God is growing fast in 50 countries.
Rosin says Quima will comment on the IBA’s findings once that authority provides a full report on its decision.
But the IBA this week said the church’s backing was not the only reason Quima failed in its bid.