Wonder Hlongwa
The South African Red Cross Society’s national executive committee is sitting on an explosive report detailing maladministration, corruption, negligence, racism and nepotism — apparently in an attempt to cover up for colleagues who are implicated in it by name.
The report details the inability of the Red Cross’s national director general, Keith Gower, to manage its affairs, as well as allegations of corruption levelled against its former financial manager, Shathi Govender.
Bev Humphries, honorary treasurer of the Red Cross, admitted there was a report after an investigation into the organisation, but said the findings could not be made public because it was not a “good report”.
The report was compiled by a private investigator the national executive hired in January 1997, because they suspected there was mismanagement of funds. Staff members were promised the report would be made available to them, but they have not seen it.
Red Cross president Ray ka Msengana refused to comment this week, saying: “It is unethical for you to ask me such crazy questions; in-house things have nothing to do with you.”
Gower says he has not seen the report because it only went to the national executive committee.
A memorandum was circulated to Red Cross offices across the country warning staff members not to speak to the Mail & Guardian. It was signed by Perish Samuels, the organisation’s new financial manager.
The M&G is in possession of memorandums from staff meetings detailing maladministration and corruption.
The memorandums detail how Govender allegedly misused Red Cross funds without intervention by senior management. His brother-in-law was hired to install anti- lightning safety equipment for the organisation’s computers, but shortly afterwards lightning struck and damaged them. He was then hired again and paid another R8 000.
Despite the organisation’s rules that require three quotes for work costing more than R500, a sum of R100 000 was paid to CompSol Technologies for the installation of an e-mail system without quotations from other companies.
Govender denied the person who installed lightning safety equipment is his brother- in-law. He refused to comment, saying: “I don’t think you should be even talking to me.”
Staffers accused Govender and Gower of racism after they refused to install e-mail in the Johannesburg office for black staffers when all their white counterparts were connected.
“The company installing the e-mail service had already wired the blacks’ offices when they were instructed by Gower and Govender to pull out the wiring,” said one staff member.
“A lot of racism in this organisation is very subtle. The real decision-making power is still in white hands. What makes many members furious is the fact that the Red Cross has a black president who is seen by many to be a ‘coconut’.”
The Red Cross has five thrift shops running at a deficit of about R1,6-million, although they were opened two years ago. “It’s amazing, because the stock is donated. But they have also bought stock at a reduced amount,” said an insider.
A fund-raising effort called Red Cross Care Week cost approximately R300 000 and raised just more than R10 000. “One of the most shocking costs towards this fund-raising effort is the hire of TV screens valued at R17 000 for two weeks. The TV screens had to be transported from Johannesburg to Cape Town and other places, at an estimated cost of R20 000,” said the insider, who declined to be named for fear of losing his job.
“T-shirts were bought for R120 000 and only a few were sold. The amount paid for the T- shirt order and stock on hand does not add up — apparently there is a shortfall of R50 000.”
Senior staff members were issued with credit cards which they used indiscriminately. Although some have been withdrawn, it is alleged that one or two are still being used.
The South African Red Cross Society ran into a deficit of about R400 000 in 1996, which a year later had grown to about R3- million. Gower said this was not a deficit but an overdraft, resulting from money spent on helping victims of violence in the East Rand and because overseas funding had dried up.