Court dismisses application against Auditor's report on Tears Foundation's R2m irregular expenditure

An application challenging the findings of an Auditor's report that gender-based violence non-profit organisation, Tears Foundation made an irregular expenditure of R2 million has been dismissed. 

It's alleged that Tears CEO, Mara Glennie, made the irregular expenditure.

Glennie is now to show cause, by the filing of an affidavit within 30 days, as to why she should not be ordered to pay all the costs of the application.

In response to the judgment, Glennie said she would be appealing and that the facts were incorrect as an audit provided to the judge in March showed no misuse of donor funds.

The organisation has no links to the animal rescue foundation with the same name.

According to court papers and judgment by Judge Denise Fischer, Glennie’s financial profile came under scrutiny after the auditor’s report raised questions about the payment by the foundation to another company, namely Fireworx Management Solution, which is also owned by Glennie.

Tears's argument was that the payment was a loan for a "Joy Cottage project" (a safe-house for abused women).

The court found Glennie's explanation for the R2 million payment not convincing and that . evidence showed she transferred the R2 million to Fireworx for a safe house, but then transferred R1.8 million to an interest-bearing Fireworx account while Tears received no interest. 

Judge Fischer said: “To my mind, the explanation as to the R 2 million payment is so implausible that it falls to be rejected out of hand. I must and I do accept the opinion of the auditor respondents to the effect that the payment was irregular. 

“The movement of funds back and forward and into different accounts seems to me to be unbridled and inexplicable."

In response to the judgment, Glennie said she refutes the findings and claimed she believed it misrepresented facts, and will appeal. 

She further said that no donor funds were misappropriated, as confirmed by their audited financials. 

"We totally refute all allegations made therein. It is our belief that the judgment, which has been widely distributed and embellished, was not a true reflection of the facts and we will therefore be appealing the judgment," she said.

"We are sure that we will be vindicated. For the record, there was no misappropriation or misuse of donor funds as incorrectly stated in the judgment. This is confirmed in the audited financial statements signed off by an independent auditor on March 7. Moreover, all requested documents were supplied to the judge by our attorney despite what was stated in the judgement."

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