TEARS CEO appeals Auditor's findings on R2 million irregular expenditure

CEO of gender-based violence non-profit organisation TEARS, Mara Glennie, is appealing the findings of an Auditor's report and a Gauteng High Court judgment, which found that she made an irregular expenditure of R2 million.

The application seeks leave to appeal to the full bench of the High Court in Gauteng, alternatively, to the Supreme Court of Appeal, against the entire judgment and order, including costs, granted by Judge Denise Fisher on June 11. 

The Cape Argus last month reported that according to court papers and the judgment by Fisher, Glennie’s financial profile came under scrutiny after the auditor’s report raised questions about a 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. 

The grounds of appeal include failure to consider evidence such as resolutions, bank statements, correspondence and addressing concerns about the R2 million transaction and Joy Cottage acquisition.

Via the appeal, Glennie states there were explanations for donor funds being moved and that a detailed supplementary affidavit for private company purchase was provided, with traceable bank transaction logs to affirmations of fund return post-sale failure.

“The court failed to consider at all evidence that the applicant placed  before the court in the form of resolutions, bank statements, and  correspondence, which would have addressed the court’s concerns in relation to the purpose and structure of the R2 million transaction, or how it then tied in to the proposed Joy Cottage acquisition,” the court papers read.

In a statement issued, Glennie said her organisation suffered a huge blow.

“The consequences of this damning publication have been devastating. All funding to TEARS Foundation has been withdrawn, forcing half of the staff to leave. The vital call center team - made up mostly of Black women who are primary breadwinners - have chosen to remain, continuing to support victims at just 50% of their salaries, while volunteers are stepping up to help fill the gaps.

“As we fight this unprecedented attack, the foremost thing on my mind is ensuring that every caller receives assistance - because I know all too well what it is to be abused and alone.”

A date for the leave to appeal hearing is set to be decided.

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Cape Argus