Home | News | WLSA ROCKED BY FRAUD SCANDAL

WLSA ROCKED BY FRAUD SCANDAL

29/12/2020 23:43:00 BY WELCOME DLAMINI AND MBONGISENI NDZIMANDZE

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MBABANE – The financial position of the Women and the Law in Southern Africa (WLSA) – Eswatini Chapter – is in disarray after a forensic audit detected acts of alleged financial misconduct.

WLSA is a non-governmental organisation that depends solely on donations from various organisations around the world. As a result of the suspected maladministration, three international donors have since either withdrawn or suspended their funding of the NGO.

These donors include the American Bar Association Rule of Law Initiative (ABA ROLI), the Open Society Initiative for Southern Africa (OSISA) and the Catholic Agency for Overseas Development (CAFOD).

OSISA, in a letter dated September 2, 2020 addressed to WLSA Eswatini Chapter’s Acting National Director Zanele Thabede-Vilakati, even directed the NGO to return an amount of US$100 000 (about E1 670 000 when calculated based on that time’s exchange rate) that was for the implementation of activities in response to the COVID-19 pandemic.

“We refer to the allegations of fraud and malpractice at WLSA Eswatini as confirmed, outlined and detailed in the forensic audit report by SAMKHO. After careful consideration of all the information provided by WLSA through emails, face-to-face engagements as well as the forensic audit report, OSISA has initiated its internal fraud processes and procedures,” reads part of the letter.

OSISA said in the interim, it had made a number of urgent decisions, which included that the US$100 000 be returned.

“The funds (US$100 000) should be wired to the OSISA account in South Africa no later than five days after receipt of this letter. Our banking details are attached to this email,” the letter, written by OSISA Executive Director Siphosami Malunga, stated. He said they were also suspending the implementation of all OSISA-funded projects directly implemented by WLSA Eswatini.

“OSISA funds for project implementation as well as core support are therefore not to be tampered with. Currently, our records indicate that WLSA is directly implementing two projects,” Malunga said.

He listed the two projects as G08602/SGJB08602, which had a budget of US$50 000 (around E835 000), and G08477/SGJB08477, which had a budget of US$150 000 (around E2 505 000).

In total, the money from OSISA that was given to WLSA during this period was around E5 million.

Contract

Malunga also said OSISA was terminating contract grant number SGJB08889 where WLSA Eswatini was to act as a fiscal agent for Liphimbo Labomake – a women’s coalition.

Although having suspended and withdrawn some of its funding, Malunga requested WLSA to continue performing the role of fiscal agent for all other organisations receiving OSISA funds through WLSA.

OSISA said WLSA should note that some of the outlined decisions would be reviewed upon finalisation of the Society’s internal fraud processes.

Malunga said in as much as the fraud situation was an alarming and concerning one, OSISA acknowledged WLSA’s commendable work and contribution to the field of women’s rights and gender in Eswatini.

“We also commend the WLSA Board for taking swift action to address the fraud allegations, hold the responsible persons accountable and strengthen the organisational systems to ensure it continues to function. Additionally, we value the openness in communicating these developments to OSISA and other WLSA funders. We look forward to resolving this matter as quickly as possible,” the OSISA executive director added.

Meanwhile, ABA ROLI Africa Division Director Sebastian Albuja also wrote to Thabede-Vilakati on December 7, 2020, informing her of WLSA’s exclusion from a No-Cost Extension (NCE) of a Women and Girls Empowerment (WAGE) award for the period between November 30, 2020 and January 31, 2021.

The NCE, as per the letter, is intended to enable core partners ABA ROLI and Grameen, and local partner organisations to complete outstanding activities under the grant that may have been affected by COVID-19 delays.

“In light of the ongoing investigation into alleged financial misconduct by two former WLSA staff, the donor, the Department of State’s Office on Global Women’s Issues, requested that WLSA be excluded from the current No-Cost Extension. ABA ROLI/WAGE recognises the ongoing steps taken by WLSA management and Board to mitigate the impact of these actions and ABA ROLI continues to work closely with the WLSA finance and management team to clear up the affected finances, and provide support and feedback on appropriate next steps to take,” Albuja wrote.

investigation

He said depending on the outcomes of the ongoing investigation, ABA ROLI may consider engaging WLSA for future programme collaboration and would remain in touch with the management in this regard. The decision by the donors to withdraw or suspend the funding has seen WLSA struggling to pay salaries for its employees and has since implemented salary cuts.

These are allegations whose veracity is still to be tested in court. This has been conceded to by the acting national director in an ongoing court case between WLSA and its Legal Officer, Dumisani Dlamini, who has taken the NGO to the Industrial Court after an amount of E4 000 was deducted from his salary for the months of October, November and December, 2020. Dlamini’s monthly salary, as per his contract, is E22 000.

According to Thabede-Vilakati, on or about July 2020, WLSA ‘was plunged into disarray in that its then national director and finance and administration officer were the subject of an investigation on allegations of financial misconduct’.

She said, from that point thereon, WLSA’s financial woes worsened in that donors were disassociating themselves from the NGO and that meant pulling out their resources’.

She said the implicated persons eventually resigned after being suspended and that on September 11, 2020, a meeting was called, which Dlamini attended, where it was communicated to staff members that three major donors had pulled out funding.

The acting national director said ‘the staff was sensitised that such was unprecedented’ and beyond WLSA’s control.

She said the staff members were advised that in view of the prevailing circumstances, WLSA could not sustain paying her and Dlamini full salaries.

“The criterion for this was because we earned the most and the donors that had pulled out were the ones which contributed immensely to our portfolios. After the brainstorm session, it was resolved that we utilise facilitation stipend (monies that a donor pays into WLSA for community work done) and repertoire stipend (monies received by person who actually does the report on the community work done). These monies supplemented our pay so that anyone could get their normal pay, but I emphasise that the staff members were advised that paying the normal salaries could not be maintained henceforth,” Thabede-Vilakati alleged.

She was responding to Dlamini’s urgent court application for an order that the deduction on his salary be stopped.

The matter is expected back in court on January 12, 2021, before Acting Industrial Court Judge Banele Ngcamphalala.

Appearing for Dlamini is MLK Ndlangamandla Attorneys while SV Mdladla & Associates represents WLSA.