KFC drops sponsorship of non-profit MES amid corruption allegations
More than 3 000 children face hunger and more than 100 jobs hang in the balance after KFC Add Hope's abrupt termination of its 14-year partnership with Mould Empower Serve (MES), a prominent nonprofit running homeless shelters and feeding schemes across Gauteng.
The fast food giant's move comes in the wake of mounting allegations of corruption, racial bias and financial mismanagement at the embattled NGO.
KFC's Add Hope funding pulled
KFC confirmed that its decision was prompted by 'allegations of corrupt activity' at MES.
Our Add Hope beneficiary organisations are consistently vetted to ensure confidence in their ability to manage funds. This includes ensuring that our partners meet strict credibility criteria, have a proven track record and behave in accordance with our exemplary standards,' Head of Corporate Affairs at KFC Africa, Andra Nel told The Citizen.
'When we become aware of allegations that might fall short of, or not meet our standards, it immediately triggers a reassessment of the beneficiary partnership.'
The company also noted that more than R1 million in Add Hope donations had been spent before the termination, prompting a demand for a full report on how the funds were used.
'All of our beneficiary organisations have regular reporting deadlines where detailed accounting has to be shared of how funds are utilised. Should we find that there is any indication of funding not spent as intended, we reserve our right to take action.'
ALSO READ: UPDATE: MES says CEO 'absolved' after claims of BEE violations and financial misconduct
While KFC said it has not yet identified specific irregularities in the reporting lines, its action signals a loss of confidence in MES's leadership.
MES did not respond to The Citizen's question about KFC's withdrawal.
Whistleblowers allege widespread misconduct
The termination of KFC's partnership comes after an anonymous group of MES staff, in a detailed statement, claimed the organisation has been hollowed out by corruption and cronyism.
At the centre of the scandal is suspended CEO Leona Pienaar, who allegedly hired friends and relatives to senior posts despite their lack of qualifications, ignored internal governance rules, and was protected by board members accused of racial favouritism and nepotism.
'The cover-up unleashed a devastating chain of events,' the statement reads. 'Donor trust was eroded by MES's refusal to be transparent, not by those who exposed the truth.'
According to the whistleblowers, Pienaar once fired a staffer for taking 'two extra pieces of chicken' from a feeding scheme – but was herself cleared of most charges despite strong evidence in a forensic report recommending disciplinary action.
MES denies wrongdoing, blames 'smear campaign'
In a media statement issued on Thursday, the MES board hit back at the allegations, describing them as 'unfounded, spurious and defamatory'.
The board accused a small group of 'disgruntled ex-employees' of orchestrating a smear campaign to damage MES's reputation.
The board said it had commissioned an independent investigation and found 'no gross or general governance irregularities' and 'no evidence of racism, dishonesty, financial misconduct, or corruption'.
It acknowledged the need for 'governance realignment' but insisted the core allegations were either false or materially misleading.
Despite this, MES has refused to release the full forensic report, citing legal privilege.
The Department of Social Development – which funds over half of MES's operations – has also requested the report. Its future support now appears uncertain.
Food insecurity, retrenchments loom
According to the statement by anonymous staff members, KFC's withdrawal and the collapse of key programmes have seen shelters like Impilo in Jeppestown, Ekhaya in the CBD and another in Kempton Park running short on food.
It is also alleged that MES staff received only half their salaries for two months. Whistleblowers claim MES may owe Sars, UIF, and pension contributions, placing employees at serious financial risk.
More than 110 jobs, mostly held by Black South Africans, are under threat. Some staff allege targeted restructuring efforts are being used to intimidate whistleblowers, while unqualified allies of Pienaar remain in senior roles.
'The organisation is no longer a haven of service. It has become a workplace ruled by fear and silence,' said one staff member.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
6 hours ago
- Daily Maverick
Johannesburg Property Company retreats amid backlash over parks cash grab
Johannesburg Property Company's moves coincide with the sorry state of the city's finances — under the spotlight ahead of next year's municipal elections — giving rise to the impression of a rent-seeking dash for cash while the trough remains open. The Johannesburg Property Company's (JPC) attempts to 'alienate' historic properties, including public spaces for sale or lease, seem to be coming unstuck. Concern erupted among Johannesburg residents after a council agenda in late June suggested that several public open spaces – including Marks Park and surrounding greenbelt areas – could be up for sale or re-leasing agreements. Daily Maverick can also report that the Bryanston Sports Club has been on JPC's radar screen, but it is undermining its attempts to monetise such assets through its blundering approach. The initial flagging of designs on Marks Park triggered a widely circulated petition opposing the moves, which garnered 13,300 signatures. The petition was submitted to JPC. On Wednesday, 30 July, it was announced during a council meeting that an item regarding the alienation of Marks Park was withdrawn – nipping the process in the bud, for now. 'This is a small victory for us because it might come back. But at least our voices have been heard,' Nicolene Jonker, DA councillor for Ward 88, said in a video message to residents. Bryanston Sports Club targeted The Bryanston Sports Club has also been targeted – but in an opaque and ham-fisted manner. On 5 June, an undated notice providing for 14 days of public participation for a change in the leasing arrangements of 'Portion 1 of erf 4668 Bryanston' – effectively the sports club and municipal library on the grounds – was discovered on the floor of the clubhouse. Club manager Pat Carolin told Daily Maverick that two serious errors were immediately spotted in the notice – it was pointedly undated, and the period is supposed to be 30 days, not 14. The notice also seemed to have been pinned on the sly on a door, and then fell to the floor. Daily Maverick has had sight of this notice. A subsequent government gazette notice published on 15 July made no mention of the lease and instead referred to public participation for the proposed development and sale of the property – contradicting the original notice. 'This discrepancy is worrying,' Carolin said. Carolin met JPC general manager Sizeka Tshabalala at the Bryanston Sports Club on Tuesday, 5 August, along with the ward councillor. Tshabalala said JPC acknowledged the error in the gazette and said it would restart the 'public participation process'. The Bryanston lease ran out in 2019, and Carolin said they had tried several times to renew it on a long-term basis, but to no avail. It is now on a month-on-month basis. The club's annual lease is R1,500 (R125 a month), but it does all of the maintenance, spending an average of R1.2-million a year over the past three years. As a non-profit, it funds this upkeep from membership fees and local sponsors. Some private investors will come to the party – but the club needs a long-term lease agreement for that to happen. 'We are providing a service to the community, that is our mandate, and so we should not be commercialised or pay market rates. If we pay market rates, we will expect the JPC to maintain the asset,' said Carolin, who Daily Maverick spoke to at the clubhouse on Tuesday, 5 August. 'We are concerned that they want their bread to be buttered on both sides, get the rent and have the tenant pay for the upkeep. We are distrustful of their motives because of their lack of communication,' he said. In response to our queries, JPC confirmed a mistake had been made in the gazette and an erratum has been made to correct the error, confirming a public participation process for the lease of the property. JPC's moves come as the sorry state of Johannesburg's finances comes under the spotlight ahead of next year's municipal elections – giving rise to the impression of a rent-seeking dash for cash while the trough remains open. The Sunday Times and Bloomberg have reported that Finance Minister Enoch Godongwana has given Joburg Mayor Dada Morero 14 days to explain how he plans to fix the city's finances and recoup R2.4-billion lost in 'unauthorised, irregular, fruitless and wasteful expenditure.' Against this backdrop of increased scrutiny and a lack of trust among the City of Gold's long-suffering ratepayers, the JPC would do well to get its ducks in a row. Putting a date on public participation notices would be a good start. DM
The Star
8 hours ago
- The Star
Eskom faces R1 billion damages for cancelling steam generator contract
Nicola Mawson | Published 1 week ago Eskom has been ordered to pay nearly R1 billion to French nuclear contractor Framatome after the Western Cape High Court ruled that the utility refused to pay damages for cancelling a contract to install steam generators at Koeberg nuclear power station. This ruling stems from a 2014 agreement originally made with Areva, which was later ceded to Framatome, covering the design, manufacture, and installation of six replacement steam generators—three for each unit at Koeberg. Framatome, which has been in operation for 60 years, was contracted to supply and install two sets of three replacement steam generators, one set to be installed in each of the reactor buildings at units 1 and 2 at Koeberg during separate planned outages of these units. These installations were meant to take place during a scheduled maintenance outage, which kept getting postponed. Two months after the outage was finally scheduled to happen, 'Eskom informed Framatome that it would not be continuing with the steam generator replacement,' the judgement said. As a result of the cancellation of the deal, Eskom's project manager 'acknowledged that Eskom's decision to postpone the work constituted a compensation event,' the judgment read. Although the project manager had acknowledged that Eskom's cancellation triggered compensation, he determined that the value of compensation was nil. The entire matter then went to arbitration, where the adjudicator ordered that Eskom must pay compensation for cancelling the contract, including for storing equipment, as well as implementation activities, which work had been wasted by Eskom delaying the date of the planned maintenance outage. After some back and forth between the parties and the adjudicator, during which the parties didn't agree on costs, 'Eskom made it clear that it had no intention of providing the adjudicator with any further information or participating any further in the adjudication process,' the ruling read. As a result, the adjudicator issued a determination of the damages amount, and Eskom decided to take the issue to the Western Cape High Court, arguing that the amount in damages was not determined by the date it was due – voiding his determination. In defending Eskom's legal action, Framatome argued that none of the arbitration proceedings were improper, nor was the adjudicator abusing his power. The Judge ruled that 'there is no basis to set aside the decisions of the adjudicator which are valid and binding. In terms of the parties' contract Eskom was obliged to comply therewith.' Eskom, it found, had to comply with its contractual obligations. The court found that Framatome was entitled to the full amount it sought. In addition to the R1bn payment, Eskom had to pay interest and costs. Cape Argus
Eyewitness News
11 hours ago
- Eyewitness News
How to combat the spike in school burglaries in the Western Cape?
R1 million in repairs. The Western Cape Education (WCED) is counting the cost of what it says is an increase in the number of incidents of school burglaries and vandalism over the recent holiday. The Department said the number climbed from 45 last year to 57 this year. Western Cape Provincial Minister of Education, David Maynier, said: "Funding will now have to be diverted from educational activities because of the selfish actions of criminals." He added that even though the crimes were minor in nature, they impacted the everyday functionality of schools. Clive Arries, the Principal of West End Primary School says:
