On February 2, the Durban metro branch of the Red Cross was stripped of all its powers, including control of all income and expenditure.
Now South African Red Cross Society (Sarcs) volunteers in KwaZulu-Natal are up in arms that the organisation’s leadership is hell-bent on rooting out individuals perceived as whistle-blowers — rather than cleaning up its financial mess.
This follows a recent Mail & Guardian exposé — published on February 1 — detailing the organisation’s questionable management of international donor funds meant for people living with HIV/Aids in the province.
Volunteers say that, contrary to public pronouncements that ”shortcomings in the finance management sector are being addressed”, the organisation’s governing board is sweeping some long-standing financial queries under the carpet.
At a media briefing in Cape Town two weeks ago, the organisation released a statement giving assurances that ”the issues and concerns arising from the [KPMG] audit report and subsequent British Red Cross Society [BRCS] review have been addressed at the highest level of the society and extensively with the British Red Cross”.
Yet sources in the organisation say the irregular use of funds from the BRCS in 2006 had not been accounted for. They have received no indication from either general secretary Mike Tainton or president Mandisa Kalako-Williams that it ever would.
These queries are detailed in a dossier sent to the national office. It contains a list of affidavits, including that of Red Cross national honorary treasurer and current governing board member Neil Nagoor, who was provincial treasurer at the time.
Nagoor’s affidavit states that to verify R500 000 from the BRCS being spent in December 2005 a questionnaire had been sent to the national office and that ”the replies received were in no way acceptable to the [provincial] finance committee. For example, [there was] an expenditure of R100 000 on home-based testing kits, and [the] explanation given was that the line item on the budget was mixed up by the provincial office, which was not explained at all to the finance committee.”
The affidavits raise concerns about a lack of control over funds from Red Cross competitions run in the province, incorrect procedures in authorising cheques drawn from BRCS funds and an alleged attempt to destabilise the Durban Metro branch of the organisation by provincial manager Derick Naidoo.
The dossier, which is in the possession of the M&G, was sent to Kalako-Williams, vice-president Dalmari Steward and Tainton towards the end of 2006.
The KPMG audit notes that the bulk of mismanaged millions from BRCS intended for HIV/Aids relief programmes in KwaZulu-Natal had been spent at the national office.
Nagoor and Naidoo referred all queries relating to any resolution to this matter to Kalako-Williams, who refused to comment.
Nagoor’s affidavit also states that ”substantial amounts on cheques” were authorised by Naidoo without the co-signature of the provincial treasurer — at that time Nagoor — which is contrary to Sarcs procedure.
On why no action had been taken against Naidoo, the Sarcs states: ”There are human resources procedures in place and due processes are available if concerns have not been satisfactorily addressed.”
The M&G is also in possession of documents and bank statements relating to fundraising competitions run by the Red Cross in the KwaZulu-Natal region.
There is no written contract that ”spells [out] responsibilities of either parties”. The timing of commission payments to the competition administrator was also questioned, with some payments made before donations were deposited. In other instances these payments were above the 40% the Red Cross allows for commission.
Kalako-Williams says: ”I’m not going to answer your ring-a-ring-rosy questions, which will have me running around all day. Do you think I must spend all day running around trying to get answers for you?”
Durban metro branch insiders alleged that Naidoo has been on a campaign to oust Nagoor ever since he questioned the use of BRCS funds at a provincial meeting at the beginning of 2006.
The cast
Mandisa Kalako-Williams: Red Cross president in KwaZulu-Natal. Refused to comment on matters pertaining to the dossier.
Dalmari Steward: Vice-president. Received a copy of the dossier.
Mike Tainton: General secretary. Received a copy of the dossier.
Neil Nagoor: Red Cross national honorary treasurer and current governing board member. The whistle-blower.
Derick Naidoo: Provincial manager. The man in the pound seat.