Loans paid into trust account never used to benefit Masi crèche, says law centre

Mayco member for transport Felicity Purchase File photo: African News Agency (ANA)

Mayco member for transport Felicity Purchase File photo: African News Agency (ANA)

Published Aug 21, 2019

Share

Cape Town – The Equal Education Law Centre (EELC) has found that alleged loans paid into the trust bank account of Masiphumelele Love and Care Daycare Centre were never used for the crèche.

This is contained in a report by the centre called by the Western Cape High Court to probe a dispute between the crèche’s founder, Aurelia Kaitesi, and its trustees: mayco member for transport Felicity Purchase and a Noordhoek couple known as the Le Rouxs.

Kaitesi and the crèche’s board of governors seek a court order to remove the trustees, arguing that their continued holding of office was detrimental to the welfare of the children at the centre.

The court challenge is expected to continue before Judge Nathan Erasmus today.

In the EELC report which the Cape Times has seen, the centre found that from the court papers and interviews with the trustees, the crèche appeared to have two significant liabilities, which include a municipal bill of more than R1.2 million and two loans from the trustees, a R100 000 from the Noordhoek couple and an undisclosed amount from Purchase.

According to the report, the trustees had all informed the EELC that there was no money in the FNB trust account and that the current balance of R69 569.04 was the remaining balance of a R100 000 loan made by Le Roux to the trust.

“From the documents the trustees furnished the amicus, we noted that on July 2, 2014, Mr Le Roux deposited R100 000 into the trust account.

“Between September 9, 2014, and March 11, 2015, a series of cash withdrawals amounting to about R145000 was withdrawn from the trust account.”

The report said since March 2014, Kaitesi was no longer a trustee and had no access to the accounts.

On closer reading of the trust bank statement provided by the trustees, it appeared that since February 2014 the crèche no longer received funding from the trust for its day-to-day operations, according to the report. 

The report said the trustees distanced themselves from the debt relating to the municipal account, while Kaitesi attributed the huge bill to a leak she brought to the attention of the trustees before 2014.

Kaitesi’s lawyer, Vernon Seymour, said his client was vindicated by the report by EELC.

“There is no evidence that the funds were used for the nursery school. The origin of the funds is unclear. It is not clear how the ‘loans’ were solicited and why it has been kept a secret until now.

“The report has exposed the baseless allegations of Felicity Purchase levelled against Kaitesi, in her attempt to seize control of nursery school property.”

Purchase said: “As we are still in a legal process, I would not like to comment at this stage. I reiterate that the trustees want the daycare centre run as effectively and optimally as possible in the best interests of the children.”

Related Topics: