Cape Town - The provincial department of social development says it would visit the offices of the Amy Foundation's office in Sybrand Park today following reports that the NGO had closed down on Wednesday.
MEC for social development in the Western Cape, Albert Fritz said they would also start a forensic audit into the Foundation's finances.
Fritz said his department had been informed that the organisation would not reopen in the new year.
Staff at the Amy Foundation have been protesting since last week citing unfair dismissals, corruption and financial mismanagement.
The Foundation was founded by the parents of Amy Biehl, an American student killed during protest in Gugulethu in 1993.
Fritz said his department found that the Amy Foundation has not complied with the terms of a funding agreement and are concerned it "may point to maladministration and misappropriation of public funds." He said funding to the Amy Foundation has been suspended.
"With these latest developments, the department will conduct an onsite monitoring and evaluation visit to the organisation today to confirm whether the organisation has in fact closed, and to initiate a forensic audit should any evidence indicating potential fraud or theft of public funds be uncovered,” he said.
@WeekendArgus