Kellogg Foundation Suspends Operations in Southern Africa
Kellogg Foundation Suspends Operations in Southern Africa
The W.K. Kellogg Foundation has announced the suspension of its operations in southern Africa for the duration of a financial audit of its Pretoria, South Africa, office.
According to Gregory A. Lyman, senior vice president and corporate secretary for the foundation, preliminary indications from the audit are that several hundred thousand dollars — and possibly more — may have been diverted illegally. Lyman also said that all assets had been secured and that the foundation would cease financial transactions in the country until the audit had been completed. The auditors and Kellogg's attorneys are working closely with South African law enforcement authorities to conduct a thorough investigation.
The foundation also has asked former U.S. ambassador to South Africa James A. Joseph, who helped Kellogg expand operations in South Africa in the mid-1980s, to advise it on restructuring its programs in the region. Kellogg has awarded grants totaling more than $350 million to recipients in southern Africa since it began operations on the continent in 1986.
"We are of course distressed that our important work in the region has been compromised and will take all necessary steps to determine the facts, take action against those responsible, make every effort to recover the missing funds, and redirect them to worthy beneficiaries," said Kellogg Foundation president and CEO Sterling K. Speirn. "We will also take steps to strengthen our administrative systems to prevent a reoccurrence of this highly regrettable incident."
“Kellogg Foundation Suspends South African Operations.”
W.K. Kellogg Foundation Press Release
10/31/08.
Primary Subject: International Affairs/Development
Secondary Subject(s): Philanthropy/Voluntarism
Location(s): Africa
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