An ugly war is brewing between the Southern African Music Rights Organisation (Samro) and the music industry.
At the centre of this conflict are a series of allegations against Samro, including a R60-million scandal, the controversial sale of its building, and lost royalties.
In a scathing letter on Tuesday, the EFF called for Samro board members to be vetted and questioned the directors’ ethical leadership.
On Monday, Sunday World reported that plans were in motion for the board to sell the Samro head office building in Johannesburg without consulting its members.
“The EFF has learned, with utter disgust, of alarming reports indicating that members of the Samro board are allegedly plotting to sell the Samro building without the consultation or approval of the organisation’s members,” reads the EFF letter.
“Such behaviour constitutes a violation of the memorandum of incorporation, which mandates that the sale of organisational assets be subject to a transparent and consultative process involving all members, particularly in the context of special resolutions.”
Lack of transparency
The party said these developments only deepen its existing concerns regarding the Samro board’s lack of transparency and increasing disregard for its governance processes.
“The EFF is particularly concerned that these plans are emerging amidst the board’s ongoing failure to act on the damning findings of the Fundudzi forensic investigation, which exposed widespread corruption and fraudulent claims of royalties by individuals and publishers, some of whom still occupy positions of power within the organisation,” said the party’s national spokesperson, Sinawo Thambo.
Thambo accused the board of having an inability or unwillingness to take decisive action against those implicated in stealing millions of rands from composers and artists, saying this further calls into question its legitimacy and commitment to ethical leadership.
“Instead of focusing on justice and accountability, the board appears more invested in disposing of assets behind closed doors, a move that can only be interpreted as a desperate attempt to divert attention from deeper institutional failures.
“The EFF notes with concern the growing frustration and anxiety within the music industry, as Samro continues to act without the meaningful involvement of its primary stakeholders: the artists and composers whose works generate the royalties the organisation exists to manage.
“The current structure, which gives disproportionate power to large music publishers, is fundamentally unjust and must be challenged,” Thambo said.
He continued: “The EFF therefore demands that all current board members be subjected to an independent vetting process to assess their fitness to lead an institution as critical as Samro.
“We will not stand idle while black artists, many of whom are politically aligned with our movement, are exploited by a system designed to serve corporate interests at their expense.”
Calls grow for urgent EGM
He said the EFF fully supports the growing calls for an urgent extraordinary general meeting (EGM).
“This meeting must ensure full transparency and accountability regarding the Fundudzi [Media] report, all related criminal matters, and the alleged attempt to unlawfully sell the Samro building.
“Should the board fail to urgently convene this EGM, the EFF will initiate legal action to have the board held accountable or placed under administration pending a full investigation into the alleged cover-up of criminal acts and the attempt to dispose of assets in violation of the memorandum of incorporation.”
Meanwhile, the music industry has informally launched a “Now or Never” campaign against Samro. The campaign calls for an EGM, demanding Samro come clean on the allegations.
Music producer Tronix Madibe said that all they want is transparency and accountability from the Samro board.
“We want the real motivation behind the sale of the Samro building. While we prepare for court action, we will not sit idle,” said Madibe.
“The building is not just real estate; it’s a symbol of our heritage. We also want Samro to pay royalties accurately and on time. It’s now or never.”
