Cape Town - The embattled Muslim Judicial Council (MJC) has remained tight-lipped following the release of a damning report which exposed alleged financial mismanagement and fraud in the handling of Covid relief funds.
The allegations were first brought to light by former executive member, Dr Moulana Yusuf Arieff, in April last year.
In a letter to the General Council, Arieff had called for an amount of R900 000 donated to Imam’s for Covid relief to be investigated.
A four-member committee of the MJC commission of inquiry (COI) was tasked to investigate 38 transactions to the tune of more than R928 000 following the allegations.
They found that while an amount of R230 000 was accounted for, an additional amount of R470 900 was unaccounted for and was not authorised by the MJC Exco.
It also found that some receipts may have been fraudulently manufactured which, it warned, could legally amount to fraud.
“Cash withdrawals and payments amounting to R470 900 had no records as to who the recipients of these payments were, or the nature of payments. These could not be traced back to any valid receipts and have been classified as unallocated expenditure. These payments have not been authorised by the exco,” the report read.
The MJC withdrew R225 000 in cash and spent it on what has been reported as internal and external expenses with no record or receipt of the expenses, the report also found.
“These receipts were therefore issued fraudulently. The COI cannot confirm how the money was spent due to the absence of records and receipts as per previous finding.
Multiple requests made to the Executive Office Bearers for an explanation on how this money was spent but no detailed explanation has been given as there are no records of the spend,” read the report.
Two cash payments to the amount R60 000 were also identified as allocated to the Women’s Forum, as per the receipts produced.
However, after requesting further clarity on how the funds were used, the head of the Women’s Forum stated that the cash amounts “were not received as reflected in the receipts produced to the COI”.
The COI found serious concerns around the President’s competency and recommended an investigation be conducted regarding the President’s fitness to hold office.
The COI also recommended the immediate replacement of the Treasurer with persons possessing the necessary skills to function as Treasurer.
In respect of the Treasurer, the COI found gross negligence in financial record keeping and cash management, more than in cash expenditure unaccounted for and participation in the creation of receipts that didn’t accord with the actual expenditure.
The COI additionally found that the First Deputy President failed in his constitutional duty as head of Treasury and was responsible for authorising many of the cash withdrawals that were unaccounted for “The MJC, which positions itself as the moral authority for the Muslim community in the Western Cape needs to assess the severe reputational damage this would do to the organisation, for the MJC to be implicated in fraud,” the report read.
The MJC declined to comment on Sunday.
A source close to the MJC said the problem lay with the leadership of the council.
“I think a case should be opened against them so that this can be resolved.
They should come forward with all the evidence so that people can see if they are guilty or not,” he said.
Al Jamah-ah leader in Parliament, Ganief Hendricks said: “The leadership of the MJC got a donation, like many other religious groups, to aid religious leaders whose income was reduced to up to nil during Covid.
“Imams in the Muslim community experienced hardship and it was up to the president’s office of three to deal with this sensitive situation. They brought immediate relief to the then indigent Imams.
“We hope for sensitivity as the MJC leadership were faced with a challenging situation, but we call for stronger oversight measures on financial matters in the MJC.”
Cape Times