In what could be described as the real events depicted in the fictional crime drama series, Money Heist on Netflix, a Spanish series created by Álex Pina, the Southern African Music Rights Organisation (Samro)’s shenanigans proved on how easily it was for the funds of the organisation to be looted high and dry.
In the forensic investigation reportedly conducted by Fundudzi Forensic Services after being commissioned by Samro in 2022, shocking details are revealed on how big bosses of the giant record and music publishing companies, including some board members and staff members of the royalties music collecting society had put their hands in the cookie jar and stole millions belong to musicians, composers and authors among them.
Report reveals scandalous events
The shocking report was only handed to a few selected board members and two top executives of the troubled organisation on 19 July 2023. In it, investigations reveal scandalous events which had been taking place at the entity.
Sunday World is in possession of the forensic report that details the capture of the royalties system. And also grand looting of the funds belonging to Samro members. The report was, however, kept hush hush from the roving eye of the media and the public.
Fundudzi stated that during its investigations relating to allegations against Samro board members, a lot of uncultured misconduct and corruption was uncovered. The probe was on issues of unethical behaviour, brought to the attention of the forensic investigators. They involved irregularities by publishers, authors and composers in the submission of undocumented works.
“During the investigations relating to allegations against Samro board members, allegations of unethical behaviour were brought to our attention relating to alleged irregularities by publishers and author/composers in the submission and claiming undocumented works, reads the report.
“We did not investigate the undocumented works allegations during investigations relating to allegations against Samro board members. The undocumented works allegations did not form part of the scope of that investigation. The said allegations were, however, reported to Samro for the attention of the Samro executive and board.
Undocumented music works
“Undocumented music works is defined as musical works that have been used and have earned royalties. But they have not been notified at Samro. Or sufficient information has not been submitted to Samro when the notifications were made.”
Fundudzi managing director, Ernest Nekhavhambe, who submitted the report, elaborated on the report. He stated that during 2020, Samro had launched a new platform that gave its members access to undocumented musical works.
“The purpose of the platform was to ease the royalty claim process while enhancing transparency. It is our understanding that previously, it was only Samro publisher members who could access the list of undocumented works. We further understand that Samro had for the 2021/2022 financial year paid an amount of approximately R24-million towards undocumented works,” said Fundudzi in its report.
The forensic company also stated that R3.4-million was allegedly claimed by Sheer Publishers. This was in respect of undocumented works.
“The said claims of the undocumented works were alleged to have been irregular. And further that there was an employee within Samro who allegedly colluded with the publishers to claim for the undocumented works,” said Fundudzi.
Massive graft uncovered
The investigators also stated that Samro resolved that forensic investigation be commissioned at the behest of the allegations of fraud and corruption committed regarding undocumented works. And this is where all the rot was discovered when Fundudzi dipped into the matter and uncovered graft.
The investigators pointed out that the second draft report relating to undocumented works investigations was confidential. And that privilege was not supposed to be utilised for any purpose without prior concern.
Sunday World can reveal that the confidentiality of the graft forensic report was hidden. It was only given to the three board members and two executives.
“Our investigation was limited to consultation and documentation made available to us during the course of our investigations. It was limited to the scope of work as reflected in the scope and methodology. During the course of our investigation, we identified the top 60 publishers, composer/authors that submitted the most value of undocumented works. We further identified the top 60 publishers and composer authors that submitted the highest number of claims,” reads the report by Fundudzi.
Investigators stated that they provided the publishers with the list of claimed undocumented works. And they requested information from those companies. This included top record labels and publishing companies which had big superstars in their stables. They were requested to provide proof of copyrights or ownership of the work worth millions of rands which they claimed.
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