Cape Town - A confidential audit report, detailing gross financial mismanagement including unaccounted expenditure worth over R500 000 within the Muslim Judicial Council (MJC), has been leaked after the organisation tried to keep it under wraps since June.
The report has recommended that the MJC president Sheikh Irfaan Abrahams be investigated for “fitness to hold office” and for the immediate sacking of treasurer Sheikh Fadhil Emandien.
The document details findings from a commission of inquiry set up to investigate allegations of financial irregularities for the 2020/21 financial year after the AGM in April last year.
Compiled by Sheikh Shahid Esau, Moulana Abdurahmaan Khan, Sheikh Muhammad West and Moulana Khalil Hendricks, the report dated June 11, 2022 has only come to light this weekend.
It found the MJC president had authorised expenditure of R320 000 with invalid invoices.
The commission’s probe found no prima facie evidence of theft or personal enrichment but gross financial mismanagement and control failures.
The report said: “The president was the ultimate decision-maker and senior authority with financial expenditure decisions as per the historic norm at the MJC and this crisis emanated under his watch.
“Despite his good intent, this has created a serious legal and reputational risk to the MJC. There may be legal consequences to the MJC and the president in his personal capacity based on these decisions,” it said.
It further recommended the treasurer be replaced with someone with the skills and competence required for the position as the current treasurer “lacks the necessary skill set to perform the required constitutional duty”.
“The commission has found that the first deputy president, Moulana Abdul Khaliq Allie, failed in his constitutional duty as head of treasury and was responsible for authorising many of the cash withdrawals that were unaccounted for.
“The Imrah should decide on appropriate disciplinary measures regarding this case,” the report read.
The Cape Argus on Sunday contacted Moulana Abdul Khaliq Allie but he refused to comment, only saying, “I won’t be able to respond now. Apologies. Thank you for your understanding.”
The report showed a substantial amount of cash expenditure unaccounted for “which could amount to fraud”.
“Receipts were produced to account for cash expenditure amounting to R330 000, of which R225 000 is unaccounted for. This could legally amount to fraud and could have far-reaching consequences,” the report said.
Due to the irregularities in the flow of money, where no receipt was attached, the MJC has been forced to withdraw their annual financial statements for the audited year.
Action recommended by the commission included an upgrade in vigilance when dealing with financial controls and regulations as a matter of urgency.