Cape Town – The Amy Foundation fears that more funders may withdraw their support to the organisation facing a number of challenges, including a strike by employees.
The foundation’s managing director, Kevin Chaplin, has confirmed that 13 funders have already withdrawn.
This as its employees vowed to intensify their strike while the Department of Social Development established an investigation into allegations of corruption, among other things. The department found that the Amy Foundation became non-compliant with the terms of its funding agreement with the department.
The strike has led to the board deciding to close the foundation’s Sybrand Park offices, along with youth skills and after-school centres.
Speaking to the Cape Times yesterday, Chaplin said some media reports had misrepresented the facts.
“The protests have resulted in some donors withdrawing their support for the foundation. This is unfortunate in a tough funding environment.
“We also have to deal with all the false allegations that have been made against me and the foundation. These range from allegations that I fled the country to theft of the IT system and corruption.
"None of these allegations are true. This has raised suspicion, which is not good for our reputation and sustainability.”
He said the foundation was declared insolvent in 2006, but a decision was made to keep it open. He said the downturn in the economy had affected them badly over the past 18 months.
“We are appalled that certain staff members have resorted to such measures of protesting. Four members of staff had to be suspended for misconduct pending a disciplinary hearing.
“I have consistently denied any mismanagement of funds and unfair labour practices. No evidence has been presented. We conduct an annual audit by an independent auditing firm.
"All our audits have been clean over the years. The foundation has a solid board and an experienced management team. Most of our supporters know the organisation they have supported and know that the foundation is reputable,” he said.
The Department of Social Development visited the foundation’s offices as part of a monitoring and evaluation exercise last week.
Spokesperson for the department Cayla Murray said: “Department officials completed a monitoring and evaluation onsite visit at the Amy Foundation’s Athlone and Gugulethu offices on Thursday, November 22.
"It was established that the offices are indeed closed, and this was confirmed by a foundation administrator. The department is currently concluding a report initiated in June.
“If there is any evidence found indicating misappropriation of funds, this will be handed over to the Department of the Premier’s Provincial Forensic Service for a forensic audit.”