Latest news with #LeonaPienaar
The Citizen
01-08-2025
- Business
- The Citizen
KFC drops sponsorship of non-profit MES amid corruption allegations
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.' ALSO READ: UPDATE: MES says CEO 'absolved' after claims of BEE violations and financial misconduct 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.
The Citizen
29-05-2025
- Business
- The Citizen
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. ALSO READ: Ex-Denel chairperson, former CEO to study docket of corruption 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. ALSO READ: Sars official testifies against company linked to blue lights corruption case 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. ALSO READ: NPA lacking in lottery probe '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. NOW READ: More than 200 000 will experience Sassa grant delays — here's why
