KFC drops sponsorship of non-profit MES amid corruption allegations

The Citizen

5 days ago

KFC said its action signals a loss of confidence in MES's leadership
More than 3 000 children face hunger and more than 100 jobs hang in the balance after KFC Add Hope's abrupt termination of its 14-year partnership with Mould Empower Serve (MES), a prominent nonprofit running homeless shelters and feeding schemes across Gauteng.
The fast food giant's move comes in the wake of mounting allegations of corruption, racial bias and financial mismanagement at the embattled NGO.
KFC's Add Hope funding pulled
KFC confirmed that its decision was prompted by 'allegations of corrupt activity' at MES.
Our Add Hope beneficiary organisations are consistently vetted to ensure confidence in their ability to manage funds. This includes ensuring that our partners meet strict credibility criteria, have a proven track record and behave in accordance with our exemplary standards,' Head of Corporate Affairs at KFC Africa, Andra Nel told The Citizen.
'When we become aware of allegations that might fall short of, or not meet our standards, it immediately triggers a reassessment of the beneficiary partnership.'
The company also noted that more than R1 million in Add Hope donations had been spent before the termination, prompting a demand for a full report on how the funds were used.
'All of our beneficiary organisations have regular reporting deadlines where detailed accounting has to be shared of how funds are utilised. Should we find that there is any indication of funding not spent as intended, we reserve our right to take action.'
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While KFC said it has not yet identified specific irregularities in the reporting lines, its action signals a loss of confidence in MES's leadership.
MES did not respond to The Citizen's question about KFC's withdrawal.
Whistleblowers allege widespread misconduct
The termination of KFC's partnership comes after an anonymous group of MES staff, in a detailed statement, claimed the organisation has been hollowed out by corruption and cronyism.
At the centre of the scandal is suspended CEO Leona Pienaar, who allegedly hired friends and relatives to senior posts despite their lack of qualifications, ignored internal governance rules, and was protected by board members accused of racial favouritism and nepotism.
'The cover-up unleashed a devastating chain of events,' the statement reads. 'Donor trust was eroded by MES's refusal to be transparent, not by those who exposed the truth.'
According to the whistleblowers, Pienaar once fired a staffer for taking 'two extra pieces of chicken' from a feeding scheme – but was herself cleared of most charges despite strong evidence in a forensic report recommending disciplinary action.
MES denies wrongdoing, blames 'smear campaign'
In a media statement issued on Thursday, the MES board hit back at the allegations, describing them as 'unfounded, spurious and defamatory'.
The board accused a small group of 'disgruntled ex-employees' of orchestrating a smear campaign to damage MES's reputation.
The board said it had commissioned an independent investigation and found 'no gross or general governance irregularities' and 'no evidence of racism, dishonesty, financial misconduct, or corruption'.
It acknowledged the need for 'governance realignment' but insisted the core allegations were either false or materially misleading.
Despite this, MES has refused to release the full forensic report, citing legal privilege.
The Department of Social Development – which funds over half of MES's operations – has also requested the report. Its future support now appears uncertain.
Food insecurity, retrenchments loom
According to the statement by anonymous staff members, KFC's withdrawal and the collapse of key programmes have seen shelters like Impilo in Jeppestown, Ekhaya in the CBD and another in Kempton Park running short on food.
It is also alleged that MES staff received only half their salaries for two months. Whistleblowers claim MES may owe Sars, UIF, and pension contributions, placing employees at serious financial risk.
More than 110 jobs, mostly held by Black South Africans, are under threat. Some staff allege targeted restructuring efforts are being used to intimidate whistleblowers, while unqualified allies of Pienaar remain in senior roles.
'The organisation is no longer a haven of service. It has become a workplace ruled by fear and silence,' said one staff member.