The Department of Trade and Industry allegedly received a false financial report from the South African Music Industry Council (Samic).
The financial report, which was presented and adopted at the Birchwood Hotel in April 2021, indicated that Samic had received R500 000 from the department.
According to reports, the funds were exhausted in a six-month period, from September 2018 to March 2019.
The report claims that the funds were used to pay for chauffeurs, hotels, flights, petty cash, petrol cards, and rental cars.
Internal sources, however, assert that the report was false.
“The financial report presented to Samic members and sent to the department was fraudulent. Some of the meetings listed in the report never occurred, a source said.
“The flights, accommodation, and travel expenses also didn’t happen. I know this because members were asked to provide proof and failed to do so.”
Board member corroborates allegations
These claims were corroborated by Nozipho Nguse, a former board member of Samic, whose name appears in the report.
According to the report, Nguse used R1 000 for a chauffeur, an allegation she strongly denies.
“I never used a chauffeur, and I received no money from Samic. I don’t know what this is about,” she told Sunday World.
In a voice note, Nguse can be heard further disputing the claim: “Can you guys come clean about this? Be transparent, because I never used a chauffeur.
“You all know I always used my old car with the hope of getting some money from those who received it.”
Sunday World has seen a letter from former Samic president Eugene Mthethwa, raising concerns about fraud and corruption within the organisation.
The letter, dated 2019, was addressed to the then minister of trade and industry, Ebrahim Patel, requesting that Samic be placed under administration or investigated by a private forensic auditor.
Mthethwa distances himself from wrongdoing
Sunday World is in possession of the names of Samic’s board members who are alleged to have misused the R500 000. However, due to legal reasons, the publication cannot reveal their names.
“When the fraud and corruption took place, I was no longer the president of Samic. I was elected in November 2015 and removed within six months,” Mthethwa said.
“My deputy, [Tebogo] Sithathu, then took over but resigned shortly after. Qetsemeni, who was secretary-general, ended up steering the ship with help from other Samic members.”
Mthethwa confirmed that Samic did receive R500 000 from the department.
“It’s true that the DTI [Department of Trade and Industry] terminated its partnership with Samic due to a complete lack of accountability and compliance.
“This followed my request to DTI for reports on how the money was spent after I had been illegally and illegitimately suspended for reasons I still don’t know,” Mthethwa said.
Corruption was hidden from senior leadership
Sithathu supported Mthethwa’s account. “I’ve waited a long time to finally set the record straight and expose those who spent the DTI/Samic funds on hotels, girlfriends, chauffeurs, and more, all without the knowledge of me as vice-president at the time, or Eugene Mthethwa,” said Sithathu.
“I resigned from Samic because of the corruption that was hidden from senior leadership.
“When we discovered the wrongdoing, we emailed the then director-general of trade and industry requesting an urgent meeting to hold those responsible accountable; unfortunately, that meeting never materialised.”
The Samic board members were approached for comment, but they did not respond.
