The once-powerful South African Youth Council (SAYC), which represents more than 60 youth structures in the country, is facing management turmoil and a financial crisis that could lead to its collapse.
The civil organisation, largely funded through taxpayers’ money, was forced to vacate its Braamfontein, Johannesburg, offices in July after it failed to pay rent and telephone bills for three months. Staff have complained that they have not been paid for the same period.
Cameron Tabane, the organisation’s deputy secretary general, confirmed this week that the organisation was facing financial problems. He blamed the organisation’s president, Zizwe Shezi, and its treasurer, Sipho Masuku, for the management and financial woes.
Tabane accused Shezi and Masuku of running the organisation ”like a spaza shop”.
The SAYC was established in 1997 to serve and protect the interest of youth. It forms part of the National Ecomomic Development and Labour Council’s (Nedlac) development chamber. Since its formation the organisation, with the National Youth Council, has played a key role in lobbying legislatures and the government on behalf of the youth.
Apart from the funding it gets from the Umsobomvu Youth Fund — about R1,5-million annually — the SAYC draws its income from youth structures that pay an annual fee of about R500.
Recently, the organisation received more than R5-million from the government as a donation for a policy conference held in Durban in June. The donors included the Department of Labour (R2-million), the Department of Trade and Industry (R2-million), the KwaZulu-Natal Premier’s office (R1-million) and the Umsobomvu Youth Fund (R250 000). Although more than 1 500 delegates attended the five-day conference, Tabane says the event did not cost more than R2-million. It is not clear how the rest of the money was spent.
The M&G has obtained a confidential letter, written by Zama Fana ka Ndaba, an executive committee member, to the office of the SAYC secretary general questioning irregular transactions from the organisation’s account amounting to millions of rands. According to Tabane, the only people with signing powers within the SAYC are Masuku and Shezi.
Ndaba’s letter claims that on April 26 four different amounts totalling R40 000 were withdrawn from the SAYC account without the approval of relevant structures. Another transaction of R1,8-million was allegedly made irregularly on April 21. The letter also says that on May 25 two transactions of R500 000 each were made without the knowledge of the national executive committee or the finance committee.
Shezi and Masuku this week denied they were responsible for the current management and financial crisis in the organisation. Instead they blamed Tabane.
”I do not run the organisation. He [Tabane] is responsible for the day-to-day running of the organisation,” said Shezi.
Asked for the overall figure for the policy conference, Masuku said: ”I will expose the proper figures for the conference after I [have gone through the] proper channels.”
Masuku said Tabane was equally responsible for the organisation’s financial problems and accused the deputy secretary general of flying to Cape Town, Bloemfontein, Kimberly and Jamaica using organisational resources without authorisation.