The National Arts Council’s former acting CEO Julie Diphofa and acting CFO Reshma Bhoola have been suspended with immediate effect following a series of serious allegations against them.
Sunday World has consistently reported on concerns about their leadership.
On August 16, Sunday World revealed that Diphofa appointed her close associate, Puleng Lesala, without following HR processes.
Defended irregular appointment
At the time, Diphofa defended the appointment.
“The position was authorised by me, as interim CEO. Puleng is an astute professional with 17 years of experience. This position did not need to be advertised, as it was an internal temporary secondment to the project management role to fulfil a specific functional requirement. The position has been filled on a temporary basis,” she said.
Whistle-blowers within NAC also wrote to the Minister of Sports, Arts, and Culture (DSAC) Gayton McKenzie and the Public Protector. They raised red flags about PESP grants to individuals close to the council members.
Despite these claims, the NAC issued a public statement denying all allegations.
Sunday World has seen the letter of suspension, which reads in part: “I have carefully considered the Public Protector’s notice of 6 August 2025, the NAC’s covering letter of 6 August 2025, and the consolidated response of 30 July 2025.
“While the council denies the allegations, many of the responses are unsupported by documentary proof. And, in several instances, [they] contain admissions of factual events that require independent testing.
Restoring public trust
“The integrity of the NAC is critical to the credibility of South Africa’s arts sector. It is therefore incumbent upon me, as the Executive Authority, to take proportionate, lawful and reasonable steps to ensure the truth is established and the public’s trust restored.”
McKenzie, added that the allegations could not be “dismissed as wholly vague or frivolous”.
“The council’s own Annexure A, dated 30 July 2025, records admissions of factual events which bear further scrutiny.”
Among the key admissions highlighted were:
Duplicate payments of R183,063 during PESP 1. And a further duplicate batch payment of R40,000 during PESP 2.
The transfer of R65-million into a trust account. While explained as being in line with National Treasury instruction, McKenzie noted this placement required independent confirmation.
Approval of projects not recommended by adjudication panels. This raised questions of governance despite being defended as lawful.
Allegations of administrative interference in HR appointments. These include the Interim ADM and a graphic designer, were dismissed without supporting HR policies or appointment records.
McKenzie also expressed concern about the appointment of Mr Charl Drinkwater during a ministerial moratorium. He noted that this had not been adequately explained in NAC submissions.
“This leads to a possible breakdown in trust between me, as the Executive Authority, and anyone who was on the council at that time. In particular the former chair, now a continuity member,” he concluded.
Independent investigator
McKenzie recommended that an independent investigator be appointed. This in consultation with the department, to probe these matters.
He further advised that: “The Interim CEO at the time, Ms Julie Diphofa, and the Interim CFO, Ms Reshma Bhoola, be placed on precautionary suspension with full pay and benefits, with immediate effect. This step would not be a disciplinary sanction but a neutral, time-bound measure to protect witnesses and ensure access to records. Both individuals are specifically named in the allegations concerning payments and financial oversight.
“Pending the outcome, the council must ensure that these council members are recused from any human resources, supply chain management or investigation-related matters.”
Questions were sent to the NAC, but at the time of publishing, he had not responded.
