GARDEN ROUTE NEWS - The Garden Route Food Pantry will strive to keep its doors open and has no intention to close. 

This was the response of Carl van Blerk, chief operating officer of the organisation, on Wednesday 1 November about the ongoing battle with the Garden Route District Municipality (GRDM).

The Garden Route District Municipality (GRDM) confirmed last Friday, 27 October, that it had terminated its agreement with the Garden Route Food Pantry four months earlier than the initially agreed termination date, which was 30 October.

According to Herman Pieters of the GRDM, their decision to end the contract early was based on the failure of the Food Pantry to provide the GRDM with audited financial statements (AFS) within 30 days after receiving them from their accountants, as required in the signed service level agreement between GRDM and the Food Pantry.

Van Blerk yesterday said, "It all comes down to what happens next, if they decide to take us to court, we don't have the funds to waste on fighting it, then I will close. Unless there is a local attorney willing to assist us, then we will counter-sue."

He stressed that in essence, he has no intention at all to close the doors. "We have come too far and fought too hard."

Reason for delay in submitting financials

He also responded to the allegations and comments made by the GRDM in an online article of George Herald regarding the Food Pantry finances.

Van Blerk explained what the cause of the delay has been in regard to the audited financials requested by the GRDM.

"For the 2020 financial year, an accountant who was volunteering her assistance to the Food Pantry had filed our return with Sars. However, they were incorrectly filed as though we were a registered PBO organisation.

"The error has resulted in an almost two-year delay in the process of filing all our subsequent returns. This resulted in our not being able to file any subsequent returns as they were all under the same incorrect profile."

In trying to correct this error, the Food Pantry requested a reputable firm to take over their profile and assist in rectifying the incorrect submission and getting its financials up to date.

"This is not a quick process, as Sars operates on an appointment basis and this makes the process tedious. During all this time, I had been requested by the GRDM to submit the audited financials and I kept them informed of the process through the provided contact, Mr Wouter Jacobs of the Disaster Management Office. Despite their insistence, there was no way I could make the process happen any faster, it was entirely in the hands of Sars and the accountants."

Use of funds for salaries

He also responded to the accusation made by the GRDM regarding the use of the funds, specifically around salaries. 

"The following clause is taken directly from our contract with them: '5. ECHO* hereby confirms and acknowledges that the funds must only be utilised for the purpose for which it was approved as per the requested letters that were submitted to the District Municipality (rental for leased premises, management salary and sundry expenses [water/electricity] for leased premises).'

"The sole purpose for our relationship with the GRDM was to fund the operating costs of the facility. These costs are never covered willingly by donors, and the placement of this clause is their acknowledgement of this fact. How do they now make a public statement that funds should have been used for food acquisitions? We have also taken pride in the fact that we have been able to provide work for citizens, hence the use of approximately R1,5m over two and a half years, an amount of approximately R50 000 a month for six salaried employees. 

"A figure we feel is well within the expectations for salaries, and also an acceptable expense considering more than R6m worth of donations have passed through the Food Pantry doors. Perhaps also to mention that I personally did not draw a regular salary at all – as my policy is to ensure my staff are looked after, before I am considered. In fact, I have accumulated large personal debt so as to cover regular shortfalls of expenses relating to rent, transport and other expenses. The small amount of R21 780 which the GRDM contributed does not go very far with the size of the operation that we have based in George."

Carl van Blerk at the premises of the Garden Route Food Pantry. Photo: Eugene Gunning

'Purely administrative'

Van Blerk said it is important to note that the reasoning used by the GRDM for cancelling the contract is purely administrative and one that has been completely out of the food Pantry's control.

He said to sue the Food Pantry to refund nearly a quarter million rands, considering the achievements of the Food Pantry over the last three years, is reprehensible. "The Food Pantry's financials are available at the facility if anybody wants to view them, we are happy to share and have always been transparent."

ECHO is the name under which the Food Pantry's contract with the GRDM is registered.

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