Unholy war erupts over missing Rhema cash

A group of South Africans is embroiled in an investigation into the disappearance of R6-million from the coffers of a UK church and its charity.

A two-year probe by the British Charity Commission into the missing funds has torn Rhema Church London apart.

Driving the battle between supporters of the inquiry and church elders is the temporary closure of the church pending the completion of the probe.

At a meeting between the commission and congregants on Tuesday it was revealed that Pastor Martin Phelps had been fired. His wife, Sandy, who resigned as church pastor this year, told The Times by SMS that the dismissal would be appealed.

The church accountant was fired and three trustees were suspended. Keith Mills was appointed interim manager.

The Phelpses and two of the trustees trained in South Africa in the 1980s. The couple, from Johannesburg, established the London church in 1991. Rhema Church South Africa CEO Giet Khosa said his church was not associated with the London church.

Central to the investigation is how church credit cards and petty cash were used. The commission said auditors were "unable to obtain sufficient audit evidence to quantify how much of the expenditure incurred on the charity's credit cards of £203,707 [about R3.7-million], and petty cash expenditure of £76,161 [R1.4-million] was incurred in the fulfilment of its objects (spreading Christianity)".

This included £86,055 (R1.5-million) relating to overseas development workshops. E-mails to the London church's alternative website went unanswered.

Mills and Sandy Phelps refused to comment. Commission spokesman Stefanie Mair refused to comment on the dismissals, saying to do so might jeopardise the probe.