MES faces explosive claims of violations and financial misconduct
Top charity MES accused of breaking BEE rules, discriminating against staff and diverting donor funds.
One of South Africa's oldest non-profit organisations, Mould Empower Serve (MES), is facing collapse as allegations of racism, corruption, financial misconduct and abuse of power rock the faith-based charity.
In a detailed anonymous media statement released this week, self-identified MES employees accused suspended CEO Leona Pienaar of 'engineering a financial meltdown' in retaliation for her suspension earlier this year.
The employees claim Pienaar manipulated donor reports, misused funds, spied on staff, and created a racially exclusive management circle.
'The very soul of MES is at stake, and may already be lost,' the statement reads.
Top leadership walks out
On Monday, the acting chief executive officer (CEO), the chief financial officer (CFO), and the national finance manager resigned.
This followed the exit of the national communications manager, reportedly in protest over the board's failure to inform donors about Pienaar's suspension.
The anonymous staff member stated that this allowed her to 'spread misinformation' and further erode donor confidence.
In total, six senior executives have now left the organisation in recent weeks.
The branch manager in Kempton Park appointed by Pienaar after a black predecessor was dismissed, also resigned under a cloud, with insiders alleging inconsistent disciplinary action along racial lines.
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Claims of financial misconduct
According to the staff statement, Pienaar is accused of falsifying donor reports, issuing invalid section 18A certificates, and diverting programme funds to consultants, including a firm owned by MES board member Willem Eksteen.
The company, Stone, Strategy, Communication and Consulting, allegedly terminated its relationship with MES just before investigations began.
'Funds were instead diverted to pay consultants… further clouding accountability,' staff alleged.
There are also claims that Pienaar authorised unlawful surveillance of staff emails and transferred control of the MES Khula Trust to her husband, a former MES CFO, without board transparency.
The Trust has not been activated despite the organisation's financial crisis.
Speaking to The Citizen, Pienaar confirmed she had been suspended but said she could not comment further.
'According to my suspension agreement, if I get media enquiries, I need to refer them back to the board till after the investigation,' she said.
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Board denies cover-up
In response, speaking to The Citizen on Thursday, MES Board Chairperson Hannes Windell confirmed that the organisation had launched an independent investigation into the allegations.
'The board takes the allegations and threats very seriously,' Windell said.
'The MES CEO has been suspended from her operational duties, with full remuneration, pending the outcome of the investigation.'
The board denied accusations that MES funds were paid to Stone, saying the company had 'never received any payment' and had only provided pro bono services.
It also said the MES Khula Trust had issued a cash loan to MES 'to avoid delaying staff salaries'.
However, the board warned that several statements in the leaked staff document were 'severe factual inaccuracies' and that it may consider legal action.
'This accusation of corruption is devoid of any truth […] It is not only harmful but also slanderous,' the chairperson said.
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'Humanitarian disaster'
Staff say the organisation, which provides support services to homeless people, children and struggling families, is now paralysed.
With no CEO, CFO, finance manager, communications head or fundraising executive, operations have all but ground to a halt.
Delayed salaries and donor withdrawals are pushing the 37-year-old organisation towards financial ruin.
'This is no longer just a leadership crisis. It's a humanitarian disaster,' said the anonymous statement.
The initial findings of the independent investigation are expected on Friday.
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