SOUTH AFRICA: DR. ALLAN BOESAK FINANCIAL SCANDAL CLAIM

(4 Jan 1995) English/Nat


South Africa's next ambassador to the United Nations in Geneva has denied claims that he's involved in a financial scandal and may have to withdraw from his new job.

Its reported that Dr Allan Boesak might be asked to stand aside after allegations that he misused half a million dollars of money intended for his human rights group.

A provincial leader for the African National Congress, Boesak was scheduled to begin his diplomatic career on February 1.

Then came the allegations that he misused funds aimed at helping the victims of apartheid.

Boesak started the Foundation for Peace and Justice in 1983 to support development in disadvantaged communities.

Danish church aid which channelled funds to the group claims Boesak used at least 35 thousand dollars for himself while his financial director admits to using two hundred thousand dollars to buy a house.
Dr Boesak says its a witch hunt.

SOUNDBITE:
"I simply am saying at this moment that I deny any wrongdoing financially whatsoever. I have had no knowledge of so-called staff loans given to persons working for the
Foundation for Peace and Justice. I have knowledge only of the fact that the principle of staff loans was agreed to. I have authorised two staff loans to two people working for the foundation and both those loans were under five thousand Rand (R5,000.00.)
SUPER CAPTION: Dr Allan Boesak.
Ambassador-designate

Cars used by Boesak and his financial director have since been repossessed and put on sale in Cape Town.

Boesak denies President Mandela has asked him to withdraw from the ambassadorship in light of the scandal sighting potential political damage.

SOUNDBITE:
"If it is correct as it is alleged that Mr Mandela has asked Dr Boesak to withdraw, then I believe the only honourable action which Dr Boesak can take is to withdraw and I would in fact encourage him to do so."
SUPER CAPTION: Professor Charles Villa-Vicencio, Former foundation Trustee.

It has also been alleged that Boesak's wife channelled some of the fund into her production house Camelot.

SOUNDBITE:
"This situation as it is now is presenting the President with a very difficult situation, it
presents me with a very difficult situation. I have said which I will repeat now that I do not believe that he has had any concern. He should not have any concern that appointing me to Geneva has been or will be a mistake, but that in the end is a decision for the
President to make."
SUPER CAPTION: Allan Boesak.

This comes as a reversal of fortune for Boesak.

He gave up religion for politics, now his future will be determined when he meets vice president Thabo Mbeki on Thursday, and that could mean a return to religion.

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