▪ No Due Processes in Human Resource Management - There is no

Human Resource Management office.

Posts filled, including the executive office are not listed on the
Organogram. Moreover, not approved by the board. We have now been informed
that a HR consultant was appointmentment subsequently.

2. Due Diligence and Compliance

A. The Chest deems itself a lead agent in the vetting of Organizations - Due
Diligence - yet it presented a Balance Sheet at its Annual General Meeting
that the new Chairperson described as " good and strong ". The Non-Profit
Organisations ACT of 1997 in section 17 and 18 requires an audited
financial statement.

3. Financial Management

A. With this good balance sheet, why still are staff threatened for the last 10
months with retrenchments?

B. The unquestionable reality is that the Chest is in dire straits. There is an

awareness of the drawn downs monthly from investments. The public further
understands that grants are not paid due to the position of the Chest.
However, it must be noted that the public too sees the expanded growth in
"certain" projects and funding. Therefore the question to the Board is, could
this be the reason for the financial position of the Chest? The
mismanagement of funds?

4. Projects and Programmes not in line with the Chest' Strategic and
Operational Plan

A. The Homeless Project - the exorbitant investment that does not fall within the
auspices of the Chest. Stipends, groceries, and other social expenses
(wedding rings, attire and ceremonies) that were paid to beneficiaries without
consultation. Yet key Organisations who work within this sector has not been
funded as a grantee because the Chest does not have cash flow.
A full list is available of these unfunded projects strongly aligned to the CEO.

5. The Lack of Accountability and Transparency in the Grant-Making Process

A. The Chest once enjoyed an open grantmaking process. The selection process
was administrated by a funding committee comprised of the grant-making
department, senior management, and the board. This ensured integrity,
accountability, and transparency. More notably, an openness that cultured an
 ownership from staff and the board. Under the CEO's leadership, a full
autocratic system was employed and he owns sole decision-making. As with
all other processes - top-down. Consequently, Senior managers and skilled
staff and their professional opinions are grossly disregarded and undermined.
B. For example, the Smith family who allegedly are receiving 7 bursaries for all
its children including stipends and equipment. Who is this family? How does
the Chest justify that an entire family is sponsored to attend a private school
for special needs? How does the Board justify a stipend of R7500 to one child
monthly? Is this common practice at the Chest?

3. Nepotism

A. The information technology system that was bought by a business owned by

the previous Chairperson of the board, valued at R6.2 million 5 years
ago. Who approved this purchase? Why is this system not being utilized? For
whose benefit was this purchased?
B. The funding of cronies - there is a list in our possession with names and
amounts. (A full list is available).
C. Consultants? Who are all these consultants. Do you know that you are
paying consultancy fees to a senior official employed by the Western Cape
Government.

5. The Abuse, Emotional Bullying, Victimization of Staff

A. The Board must take full responsibility for the lack of human resource
management. The Chest holds a staff compliment who is disgruntled, who
feels victimized and abused. The board must further take full responsibility for
the lack of wellness of staff in this absence of a HR function.

B. According to the CEO only 5-7 people have worked over the lockdown
period. Staff are consistently threatened with this allegation made by the
CEO.

C. Staff feels that they have been coerced into pitching at public events
regardless of a global pandemic. Many staff chose to do so in fear even
though they have comorbidities. The CEO made it very clear that staff is now
contending for their jobs. This has created a toxic work environment.
D. Very skilled staff feel that their abilities are being undermined.

Recommendations
We would like to draw your attention to the
seriousness of these allegations. We would
like to further inform you that we will consult
with the four board members to see if any of
the contents in this communication is part of
the reasons they have resigned. We also
further want to bring to your attention that
the Chest operates on public funding that is
directed under the Non-Profit Act of South
Africa. The Chest, in addition, must adhere
to the Labour Relations Act and the Basic
Conditions of Employment Act.

1. We are therefore requesting that there be an immediate

suspension of ALL DUTIES of the CEO pending a full
investigation. In fact, we are aware that he has
resigned. However, communication around this keeps altering or
contradictory. The CEO resigned?

2. The recordings of all staff meetings via Zoom must be made

available immediately as part of this inquiry.
3. We are further requesting that staff be interviewed as part of this
investigation and all staff must be protected to avoid further victimization.
We would like to protect the integrity OF ALL STAFF AND OTHER WHISTLE
BLOWERS.
4. Considering that the staff of the Community Chest feels that the
Board of Directors have failed the staff, we are requesting that this
process not be led by the current Board of Directors but that they employ
a completely autonomous process using an independent body to conduct
the investigation.

5. It must be registered that Senior staff who formed part of the

corruption outlined above will likewise be brought to book and charged.
The board was given 48 hours to respond and has since called for an urgent staff
meeting with the staff - 17 February 2021, where staff was totally disrespected,
undermined, and the parallel process of the union not understood nor entertained.
Staff was further coerced to sit in a farewell meeting for 15 minutes where the CEO
further victimized staff.
The Chest has served the country and its citizens for the last 90 years and it will be
to the detriment of the poor, its legacy and its co-builders, if there is not an
immediate probe into these indictments. The Whistleblowing Movement's primary
priority is to ensure that all issues of injustice, corruption, and malpractice are
exposed following corrective plans guided by the law of this country.

More primarily, that the staff that continue to fall prey to unethical practices within
the NGO sector are spoken for.

We invite staff to communicate directly with the Whistleblowing Movement as they

now take further steps to ensure that the ongoing corruption at the Chest be
concluded with immediate effect.