The chairperson of the Portfolio Committee on Sports, Arts, and Culture, Joe McGluwa, has lambasted the Department of Sport, Arts and Culture (DSAC) for allegedly awarding Mzansi Golden Economy (MGE) funding to deregistered companies and entities with questionable compliance records.
It also emerged that organisations linked to Cultural & Creative Industries Federation of South Africa (CCIFSA) executives have been approved for funding. This is despite DSAC Minister Gayton McKenzie previously labelling the organisation as corrupt and announcing that it warranted an investigation into its activities.
Failed to comply with regulatory requirements
His criticism comes after Sunday World uncovered that several companies listed to benefit from the MGE funding programme have been deregistered by the Companies and Intellectual Property Commission (CIPC) due to failure to comply with regulatory requirements, including the submission of tax returns and annual reports.
McGluwa, a DA MP and party spokesperson in sport, arts and culture, condemned the department for awarding the funds to these entities.
The controversy has deepened with revelations that senior members of the CCIFSA are also set to benefit from the MGE funding. CCIFSA is currently under forensic investigation for alleged corruption.
A company and a foundation belonging to two CCIFSA top executives have been allocated R900,000 and R700,000, respectively, under the MGE initiative.
Labelled organisation as corrupt
This is despite the public denunciation of CCIFSA by McKenzie. He previously labelled the organisation as corrupt and announced an investigation into its activities.
At Winnie Khumalo’s funeral, McKenzie accused CCIFSA of stealing money from artists. At that time he said: “They received millions from the government. Tomorrow, 19 January I will be releasing bank statements to prove my claim. What I’m saying is, stop being represented by everyone. Learn the business of music. Artists need to represent themselves. But in 2025 I’ll fix the problem.
“Artists are also exploiting each other. They get millions from the government. CCIFSA is the number one crime organisation. They get millions from the Department of Sports Arts and Culture. But there’s no money when artists die. They cannot even contribute towards the funeral. Yet they claim to represent artists.”
Artists frustrated, disillusioned
An anonymous artist, who declined to be named, expressed frustration.
“I am particularly saddened because the minister himself accused CCIFSA of corruption and promised a forensic investigation. Now we hear that the same people are being funded. What was the point of the investigation then? This shows the minister is not serious about cleaning up the sector. Frankly, I don’t think I’ll ever take him seriously again.”
McGluwa echoed these sentiments. He expressed alarm over the lack of transparency in DSAC’s funding allocations.
“The allegations that DSAC is funnelling public funds to deregistered and non-compliant companies are deeply concerning. If true, this points to flawed decision-making processes, lack of due diligence, and possible corruption.”
Clarity on the methodology
He added that the department must urgently provide clarity on the methodology and criteria used to award MGE funds.
“It is unacceptable that companies outside of the arts sector are receiving funding. This while many legitimate creatives continue to struggle. Where is the transparency and accountability in this process?”
McGluwa also criticised the department for ignoring the Portfolio Committee’s repeated calls for stricter oversight and transparency.
Lost faith in DSAC
“We have consistently demanded that DSAC ensure fairness and accountability in funding decisions. Yet, here we are again, facing the same issues. How does the department justify allocating funds to companies that are deregistered, non-compliant with tax obligations, not even on CIPC’s records, and allegedly connected to CCIFSA?”
The DSAC had not responded to media queries by the time of publishing.
Meanwhile, calls are growing louder within the creative sector for a full disclosure of the MGE funding process. Also for the publication of beneficiary lists, and the status of the forensic investigation into CCIFSA.
