Minister of the Department of Sports, Arts and Culture (DSAC) Gayton McKenzie has launched an investigation into the funds allocated to the Downtown Music Hub (DTMH) over the past years.
This was revealed in his response to Parliament, where he was asked whether he had personally visited the music hub and what his understanding of a music hub is, specifically in relation to the DTMH.
“I have not yet had the opportunity to personally visit the Downtown Music Hub. Although I intend to do so very soon.
Full investigation underway
“I am in the process of initiating a full investigation to determine conclusively whether everything is in order at the Downtown Music Hub and to inform the decisions that will need to be made regarding its future,” said McKenzie.
“I, too, have critical questions regarding the money that has been allocated to this facility over the years. How it has been spent, and what value the department and the National Arts Council have to show for it.”
A few weeks ago, McKenzie told Parliament that the DTMH is owned by the National Arts Council (NAC). He added that his department has paid R93-million to the DTMH.
“The NAC, an entity of the DSAC, owns the entire asset, which was purchased in 2008. Since then, approximately R93 308,001 has been provided as a grant to support the project,” he said.
NAC denies owning DTMH
However, the NAC rejected McKenzie’s claim.
“The DTMH was initiated by the Department of Arts and Culture in 2008. It aimed to improve access to professional recording facilities for the South African music industry.
“As the department could not directly acquire immovable property, the NAC acted as a conduit for the acquisition,” said NAC.
“This was possible because the NAC’s founding legislation permits it to acquire immovable property. The NAC’s annual financial statements reflect ownership of the building, thereby formally recognising the DTMH as an asset of the NAC.”
At the time, both the DSAC and NAC were unable to account for the R93-million. Between DSAC and NAC it is still not clear who owns DTMH.
