NGO faces fraud charges

Published Jul 13, 2007

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By Andisiwe Makinana

A case of fraud has been opened at the Milnerton police station against a women's non-governmental organisation, while the Department of Social Services and Development, which had funded the organisation to the tune of R5 million, is also investigating.

Department spokesperson Simphiwe Xako said that after receiving allegations that workers had not been paid last month, MEC Kholeka Mqulwana had launched an internal investigation. "We are expecting the report next week."

Xako said seven of 10 projects' finances were being investigated. Each project had received

R500 000 in funding.

The scheme, Siyandiza Women Empowerment Group, was set up to train and create employment for more than 50 women around the province. The group has been making disposable nappies for retailers.

Despite a progress report dated March 30 saying

4 000 nappies were manufactured daily at each of the centres, the programme has all but collapsed within nine months.

The workers demonstrated outside the company's headquarters in Montague Gardens yesterday, hoping to put pressure on both the directors and Social Services. They accuse the directors of fraud and unfair labour practices.

One worker, Bulelwa Nomama, said: "When we realised we were no longer employed we went to the Labour Department to check on the Unemployment Insurance Fund (UIF) only to discover it had not been paid. This after the company has been deducting the UIF money."

Nomama said they had also not been paid their June salaries and had been told there were no funds to meet them. "It's not the first time we have not been paid," she said.

On Thursday a departmental official seized documents to start investigations.

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