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McKenzie refers R51.8m CCIFSA funding scandal to Hawks and SIU

Fanelesibonge Bengu|Published

Artists staged a protest at KwaZulu-Natal’s premier arts complex, the Playhouse Company, last week, carrying coffins to symbolise what they describe as being “buried alive” by the institution. The demonstration took place amid spending cuts which the artists say are negatively affecting their livelihoods and financial stability.

Image: SIBONELO NGCOBO Independent Newspapers

All individuals implicated in the alleged mismanagement of R51.8 million allocated to the Creative Industries Federation of South Africa (CCIFSA) by the national Department of Sport, Arts and Culture between the 2014/15 and 2023/24 financial years will be referred to the Hawks and the Special Investigating Unit (SIU).

This was confirmed by Sports, Arts and Culture Minister Gayton McKenzie after his department received a forensic investigation report compiled by Gobodo Forensic and Investigative Accounting (GFIA).

According to a statement issued by the department, the investigation uncovered several alleged irregularities in the management and use of the funds.

The report found that in 2016, amendments were allegedly made to the department’s contract with CCIFSA, increasing the funding allocation by R77 884 beyond the original agreement.

It further alleged that R5.4 million, which should have been returned to the department during the 2016/17 financial year because it remained unused, was instead used by CCIFSA to implement programmes in subsequent years without a formal agreement in place.

The investigation also found that reports submitted by CCIFSA on the expenditure of the funds were allegedly misleading.

Among the findings was that R13 million earmarked for the Downtown Music Hub programme was allegedly merged with CCIFSA’s operational funds in a single account, a practice described in the report as inappropriate.

The organisation was also allegedly unable to adequately account for the use of R10 million allocated for the Usiba Awards prizes.

In addition, the report stated that CCIFSA’s funding budget proposed allocating 32% of the grant towards staff salaries and officer remuneration — significantly above the 10% cap permitted under the funding agreement.

McKenzie instructed the department’s Director-General, Dr Stella Khumalo, to institute disciplinary processes against any departmental officials implicated in the report.

He added that the report would also be forwarded to the Auditor-General, the SIU and the Hawks for further investigation.

“The department will also review its existing and future relationship with CCIFSA,” said McKenzie.

He rejected claims that CCIFSA was being unfairly targeted.

“What the investigation revealed is that no one is being victimised. It reveals mismanagement of public funds, a failure to account for the use of funds, a failure to recover unused funds and a failure to properly account for how the funds were spent.

“The people of South Africa and the artists this organisation was supposed to serve deserve the truth about what happened to this money,” he said.

CCIFSA national president Joy Mbewana said the organisation had repeatedly requested access to the full forensic report but had not yet received it.

“The report cannot remain an internal departmental document or we will approach the courts. We want the report because we want to silence those who continue to insult us using old allegations,” Mbewana said.

She accused McKenzie of prematurely cutting off CCIFSA’s funding without concrete proof of financial misconduct.

“When he took office, he came after us aggressively. Even at Winnie Khumalo’s funeral, he said we were receiving millions without accounting for them properly, which was not true.

“When I arrived in 2019, an investigation had already been conducted and the issues he is now raising had already surfaced. We engaged with the department and resolved those matters. Under our leadership, no corruption has emerged,” she said.

Meanwhile, CCIFSA KwaZulu-Natal staged a protest outside The Playhouse Company last week over concerns about the institution’s management.

CCIFSA KwaZulu-Natal chairperson Thokozani Zulu, popularly known as “T’zozo”, said protesters wanted Playhouse manager Lynda Bukhosini to relinquish one of her leadership positions.

“She is often unavailable when she is supposed to perform her duties as artistic director. We also want the Playhouse in Mayville reopened because it has been closed for a long time,” said Zulu.

He further alleged that despite the Playhouse receiving R57 million in government funding for staffing and security, artists were still being charged additional fees for venue usage and staff overtime.

“As artists, we are forced to pay for the use of the venue and overtime costs for staff, which is unfair,” he said.

Zulu said management had been given seven days to respond to the organisation’s demands.

Attempts to obtain comment from Bukhosini were unsuccessful as calls to her phone went unanswered. The Playhouse in a response to the Sunday Tribune over the same matter of funding cuts previously framed them as "unavoidable reprioritisations" to ensure the institution's survival, the local creative community feels the sting of a different narrative.

"We recognise the impact of these decisions on arts practitioners, audiences and the widercreative sector and we also feel the strain associated with such decisions and we appreciateyour understanding and cooperation during this time," read the statement issued by the premier arts complex issued two months ago.

SUNDAY TRIBUNE