The J4:14 Foundation, an international charity organization operating in Uganda since 2010 and officially registered in 2021, is at the center of a growing controversy. Allegations have emerged that the organization, under the leadership of its president, Mr. JD Smith, has stopped paying its Ugandan employees and is exploiting local communities by charging exorbitant fees for access to water.
Initially celebrated for rehabilitating government boreholes to provide clean water, the foundation reportedly introduced a community savings norm of 1,000 Ugandan Shillings (UGX) per household to manage minor breakdowns. However, after Mr. Smith visited Uganda in June last year, he allegedly adopted a more exploitative model, charging 4,500 UGX per family per month without community sensitization. The abrupt change has sparked outrage, as the foundation’s operations were initially framed as charitable, not profit-driven.
Further compounding the controversy, Mr. Smith is accused of attempting to forcefully merge J4:14 with another organization in Kampala. This decision, reportedly made without consulting employees, has led to internal discord. Workers who had contracts valid until 2026 were blindsided, leading to demands for unpaid salaries, NSSF contributions, and clearance by the Uganda Revenue Authority (URA).
The situation escalated when Mr. Smith sacked a senior manager who informed employees about the planned merger. Workers now accuse him of dodging accountability and exploiting tax exemption granted to the organization in the United States.
Former employees have expressed plans to storm the American Embassy in Kampala, demanding justice and intervention. They claim Mr. Smith has exploited both Ugandan communities and the charity's staff while profiting unethically.
This unfolding crisis raises serious questions about foreign charity organizations operating in Uganda and the accountability of their leaders. Authorities and relevant agencies are urged to investigate the allegations to ensure justice for the affected workers and communities.
Response to Allegations Regarding the John 4:14 Foundation
Upon contacting the organisation Owner, this was his response:-
Dear Arnold,
Thank you for reaching out for clarity on the allegations surrounding the John 4:14 Foundation. We welcome the opportunity to respond to the claims and provide accurate information about our operations, mission, and challenges.
1. Allegation of Stopped Salaries and Employee Exploitation
It is untrue that the John 4:14 Foundation has stopped paying employees.
• Fact: Salaries for all active employees were paid through November. December and January salaries have been delayed due to an ongoing investigation into financial irregularities involving the foundation’s former manager, who is accused of embezzling over $35,000 USD and significant borehole community savings.
• This individual’s actions disrupted our operations, but we remain committed to addressing any outstanding matters and ensuring fairness to all employees.
• Additionally, we are still working to restore access to an international bank account, further delaying our financial processes.
2. Claims of Exploitative Water Fees
The accusation of increasing fees to 4,500 UGX per month without community consultation is incorrect and misrepresents the foundation’s model.
• Fact: The John 4:14 Foundation rehabilitates government boreholes at no cost to communities. Following rehabilitation, we encourage communities to establish savings groups to fund ongoing maintenance and future repairs.
• The Suggested Contribution: While some communities throughout Uganda but not directly associated with John 4:14 have voluntarily proposed a monthly saving of 4,500 UGX per family, this amount is collected and managed locally, and that is the case for John 4:14 as well. This is standard practice among NGOs and ensures sustainability.
• Unimplemented Suggestion: The increase was a proposal to encourage true sustainability but was never implemented or communicated to any borehole savings group. Claims to the contrary are baseless.
• Sustainability Challenge: Currently, communities only pay for parts needed for repairs, while the John 4:14 Foundation bears the cost of fuel, labor, and transportation. This is unsustainable, and future repairs must cover all costs for continuity. As we have a record of over 400 borehole repairs these monthly costs are adding up as overhead by the ever increasing amount of well restored.
3. Alleged Forced Merger with Another Organization
There has been no merger between the John 4:14 Foundation and any other organization.
• Fact: Discussions with the Ugandan Water Project (UWP) centered on collaboration for clean water initiatives. No merger has occurred, and no employee contracts were invalidated due to these discussions.
• Collaboration History: The John 4:14 Foundation and UWP have partnered on water-related projects for years, including two recent water distribution systems costing $140,000 USD, benefitting vulnerable communities in Uganda.
• Merger Intentions: A merger or collaboration was never contemplated to do less work. From a U.S. donor perspective, the goal has always been to increase the quality and quantity of clean water initiatives. The more high-quality work we can achieve, the better it is for the communities we serve.
• June 2024 Discussions: During my visit to Uganda in June 2024, I held discussions with employees about the possibility of a merger. Contrary to allegations, there was no protest or significant objections from employees. Jemimah simply stated that the process must be done correctly, to which I agreed.
4. Claims of Contracts Valid Until 2026
The assertion that worker contracts extend to 2026 is misleading.
• Fact: Employee contracts were valid through December 2024. However, after the suspension of the former manager, Jemimah Nantongo, forged extensions for select employees were discovered. These forged contracts have been reported to the relevant authorities.
5. Allegation of Tax Evasion and NSSF Noncompliance
The John 4:14 Foundation operates in full compliance with Ugandan and U.S. laws.
• Fact: The foundation has been registered in Uganda since November 2019 and has paid NSSF contributions for all eligible employees since then.
• Fabricated Claim: Allegations of unpaid NSSF contributions arose only after Jemimah’s suspension, as part of her efforts to obstruct investigations into her financial misconduct.
• We are in constant communication with NSSF to address these claims transparently.
6. Missing Files and Disrupted Accounting
Our accountability to communities and ability to complete audits have been significantly delayed due to the theft of important files and documents.
• Many critical records were stored on personal Gmail accounts belonging to Jemimah and other accounting personnel instead of the organization’s cloud accounts. This practice was against all policies and has obstructed our ability to finalize audits.
• Appeal for Recovery: We urge the police and relevant officials to assist in the recovery of these files. If Jemimah and her collaborators believe the John 4:14 Foundation has wronged them, they should provide access to the stolen files so we can complete the audits and address any discrepancies transparently.
7. Embezzlement and Organizational Challenges
The foundation is facing challenges due to financial mismanagement by its former manager, who has been suspended and is under investigation.
• Missing Funds:
• UGX 60MM–100MM from borehole community savings and Village Savings and Loan groups.
• Over $35,000 USD in organizational funds.
• June 2024 Discovery: During my visit in June 2024, I discovered over $8,500 USD missing from borehole funds held at the office. Accounting records showed that these funds were improperly loaned to employees, a direct violation of Board policies prohibiting the use of borehole savings for personal loans.
• Ignored Audit Directive: I demanded an immediate audit during my visit, but Jemimah ignored this directive. Evidence now suggests that she was directly involved in the theft, as further investigations have revealed.
• Bribery Allegations: Jemimah has significant resources from embezzled funds and has allegedly used these for bribery, influencing certain officials to interfere with investigations.
• Collaboration in Misconduct: Recent discoveries from recovered files and computers suggest that some members of the foundation’s accounting team may have collaborated with Jemimah in the embezzlement scheme. These findings are being investigated, and we are cooperating fully with the authorities.
Conclusion and Next Steps
We acknowledge the challenges faced by the foundation, particularly due to the mismanagement uncovered in recent months. However, our commitment to serving the people of Uganda remains unwavering. The John 4:14 Foundation continues to operate transparently and in compliance with all regulations, ensuring that our mission of providing clean, safe, and sustainable water solutions is upheld.
We urge the public to review the full context of these allegations and welcome inquiries to clarify any remaining concerns.
Sincerely,
Justin Daniel Smith
President and Secretary
The John 4:14 Foundation
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