The arts and creative sector has been left with unanswered questions after minister of sport, arts and culture Nathi Mthethwa's briefing on a forensic report into the presidential stimulus employment programme (Pesp) funds.
The industries are also baffled as to why Mthethwa did not publicly release the report into the funds managed by the National Arts Council (NAC) at the briefing held in Pretoria on Monday.
Instead, Mthethwa and NAC board chairperson Princess Cebelihle Dlamini revealed little detail about what the investigation uncovered.
The investigation implicated five members of the NAC in the mismanagement of R300m funds.
The report also found that there was a violation of the Public Finance Management Act, maladministration and over-committing of funds.
Mthethwa, however, said there was no evidence pointing to fraud.
The five council members were implicated because they were involved in the adjudication process and were also paid, breaking the NAC rules.
“Council members' job is oversight over entities and these ones were involved in operational matters, including adjudication and were paid for that. They violated the NAC Act. Two of them are still around and three are no longer with the NAC. I have written to them to state their side of the story. I will take a decision based on what they would have said,” Mthethwa said.
The NAC was given R300m to disburse to the arts and creative sector in October last year.
Dlamini emphasised that the R285m which was meant to create jobs was not looted but dispersed correctly.
Activists and creatives who have been vocal about lack of transparency in how Pesp funding was disbursed said they were unhappy.
They said the briefing failed to answer crucial questions about the suspended CEO Rosemary Mangope and some beneficiaries.
Mthethwa's spokesperson Masechaba Ndlovu said the report would be released publicly at a later stage.
The industry further wanted to know the people who applied for a smaller amount of funds but were approved for a bigger figure.
On governance, Dlamini said the investigation found that section 11 of the NAC Act was contravened and that there was failure to observe council resolutions.
“It shows that there was no effective and appropriate steps to prevent irregularities in the adjudication process, including irregular spending. It discovered failure to provide financial oversight regarding the implementation of Pesp which resulted in over committing of which double of the amount was budgeted for.”
Theatre and Dance Alliance (Tada) said in its statement: “...The information provided by the briefing is not new to us as the Tada as we also compiled our own investigative report – released in June 2021 and most of the findings are in line with what we compiled in our summary like the gross maladministration and mismanagement of these funds.”
Member of the portfolio committee on sport, arts and culture Tsepo Mhlongo said: “It is totally wrong that they are not releasing a full report to the public. I'm not happy and have been left with more questions.
“He [Mthethwa] said nothing about the CEO and CFO. There is nothing on the report saying about council members that benefited, the current council did not do oversight. I don't understand why he is not naming the people implicated. He is also confusing us when he says he will recoup the money and there is no clear definition of how they will recoup the money.”
President of I’m 4 the Arts, Sibongile Mngoma, said: “There is never a transparency at the department of sport, arts and culture and NAC. They must make the report public and a list of beneficiaries, including a proof of payment. Mthethwa said nothing in that briefing because he did not answer all the questions that people wanted answered.”
President of Roadies Association (Sara) Freddie Nyathela said: “This is another cover-up to protect thieves and blatant corruption. It has happened twice before with other forensic reports.
That is why Sara has taken this matter to the Hawks. I still want to know how you recoup the funds without involving law enforcement agencies. Why is the minister not referring the report to them?”
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