Clare Estate Crematorium under fire for tariff hikes amid financial misconduct claims

THE Clare Estate Crematorium is under fire for its impending cremation tariff increases on March 1, amid allegations of financial misconduct and a lack of transparency. 

An anonymous WhatsApp message did its rounds last week, which raised various concerns about the operations of the crematorium. 

The message stated that the cremation fees would increase to R3 020 on weekdays, making it between 30% to 70% more expensive than other municipal-owned and private crematoriums. 

The current fees for cremations between Monday and Friday are R2 750, and  R3 000 on Sunday and public holidays. 

It was also alleged the crematorium brought in an estimated monthly income of R1.5million and had R30 million in investments which generated R210 000 a month interest. 

“This crematorium is highly profitable, yet they keep increasing prices by 10%,” the message read.

It further claimed that the crematorium was operating illegally, and that amendments to its Constitution were rejected twice by the Department of Social Development (DSD).  

It has been alleged that financial statements had not been submitted to the DSD for the past two years. 

The message called for the crematorium’s financial records to be immediately released and a public meeting held with the community.

It further called for an independent investigation to be conducted, and that the tariff increases be halted until the investigation was completed. 

Narend Singh, Deputy Minister of Forestry, Fisheries and the Environment, said the message was shared with him and he would be engaging with the crematorium’s trustees and board of management to address the allegations.

This week, the board of management and trustees of the crematorium’s society rejected the contents of the letter as “reckless, misleading and defamatory”.

Pradeep Ramlall, president and chairperson of the society’s board of management, said the allegations were false. 

“These claims undermine public trust, harm grieving families, and disrespect the legacy of the founders who built this institution to serve the community with dignity,” he said

He said the society’s financial statements were independently audited by firms of professional chartered accountants. 

“No ‘funds are hidden’ as alleged in the WhatsApp message being circulated by anonymous individuals. No trustees, board members or officials receive any personal benefit. Our financial statements have been audited and approved by membership and the registrar of NPO. I can confirm from the audited financial statements that the society does not have any investment of R30 million. Claims of secret profits or unexplained reserves are fabricated and designed to inflame public anger.”

Ramlall said there was no illegality or governance failure.

“The society operates under a legally binding and approved constitution. The board of management serves voluntarily. The strict governance structures are in place, and ethical and moral conduct is a requirement. Board members are fully aware of the regulatory, legal and compliance requirements.”

He added there is no corruption in procurement or upgrades.

“All upgrades to cremators and halls were conducted through transparent procurement processes, with professional undertaking and providing services at no cost to the Society. No irregular expenditure has occurred.

“There is no exploitation of the community. The society receives no government funding whatsoever and operates entirely on service income. Fees reflect real inflation related operating costs, such as gas, staff, insurance, environmental compliance, specialised equipment maintenance, and infrastructure upgrades and depreciation,” he said. 

Ramlall added that there was no profiteering from reserves or investments.

“The Independent Regulatory Board for Auditors, the Constitution and atmospheric emission licence conditions legally require the society to maintain reserves for risk management, asset replacement, environmental compliance and future cost recovery.

“In addition, cremators are specialised refractory-lined equipment with abatement technology and operate at extremely high temperatures and the refractory must be replaced at regular intervals due to wear and tear. Planned maintenance and reserve provisioning are non-negotiable legal requirements. Failure to comply would result in massive fines and potential closure, a reality evidenced by many dysfunctional and non-compliant municipal facilities,” he said. 

Ramlall said there is no disregard for community service.

“During Covid-19, the society operated 24 hours a day without any government assistance or grants, while staff and officials placed their lives at risk and tragically, two lost their lives in service to the community. 

“Our charitable services to the indigent are on a verified basis and are not advertised as a mark of respect and the prevention of abuse. This is done with a few undertakers who offer their services privately,” he said.

He added that the allegations represented an attack on a sacred community institution and the dedicated volunteers and professionals who sustain it. 

“The continued spread of falsehoods is irresponsible, harmful and morally indefensible. The board has instructed its legal team to assess all available remedies should this conduct persist. However, the society’s priority remains service, dignity, compliance and truth not sensationalism or public intimidation,” he said. 

Ramlall said they remained committed to lawful governance, transparency, sustainability and affordable access to dignified final rites for all communities.

“The question is what have these social media activists contributed and why are they nameless and not questioning the government, and the failure to provide such services such as in Mobeni and Tongaat? Why target a well-run private organisation?”

He said the “smear campaign” regarding the new rules implemented last year followed a similar pattern. 

“Funerals in general are becoming expensive for various reasons. Our sustainability model is based on the vision that we will continue to serve the community for the next 20 years. Facts will defeat fear, truth will defeat lies. We are compliant with all regulatory and government organisations,” he said.

Ramlall said the community and members are fully aware when general meetings are held.

“These meetings are open to the public to attend. Our constitution regulates the procedure to request and convene meetings. Persons are required to adhere to such procedures. The Society’s affairs are being administered beyond reproach. Its officials volunteer their Seva and do not engage in unfounded slanderous communications.”

The Clare Estate Umgeni Hindu Crematorium tariffs increases effective from March 1:

• Monday to Saturday: R 3 020
• Sunday and public holidays: R3 300
• O to 1 year: R600
• 1 to 12 year: R1 320
• Above 12 years: R3 020

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