The Southern African Music Rights Organisation (Samro) is allegedly planning to sell its head office building without having consulted its members, according to information that was leaked by some of the concerned board members.
The building in question is located at number 20 De Korte Street in Braamfontein, Johannesburg.
These board members, who preferred to remain anonymous, told Sunday World that the matter was extensively discussed during a recent board meeting.
They further claimed that an offer has already been made, but the transaction has not proceeded due to divisions among board members.
While the majority reportedly support the sale, others are opposed to it, arguing that the matter should be brought before Samro members at the annual general meeting (AGM).
Board member dismisses allegations
Samro’s main responsibility is to manage performing rights for its members. It accomplishes this by collecting licence payments, which are then disbursed as royalties, from music users (such as radio and television broadcasters, live music venues, stores, restaurants, promoters, and shopping malls).
“In the last meeting, the board proposed that the Samro building be sold. In fact, this is an ongoing discussion among board members,” said a deep throat.
“I can further reveal that there is already a potential buyer. Unfortunately, I cannot reveal the name or further details because there is so much at stake. But it’s an ugly mess.
“The only reason the building has not been sold is because the board is divided. There are members who are against the sale of the building.
“In that meeting, they argued that the building cannot be sold without the permission of Samro members. They insisted that the issue needs to be brought to the attention of members at the AGM.”
However, another board member, Gabi le Roux, dismissed the allegations and said, “I am aware of this rumour that the board is planning to sell the building. This is not true.
“The board cannot sell the building without informing its members. The board is doing everything legally and in accordance with the memorandum of incorporation. We don’t know where this rumour comes from.”
Anxiety within music industry
The rumour has caused anxiety within the music industry, so much so that the president of Intellectual Property Justice, Tebogo Sithathu, penned a letter seeking clarity from Samro.
“We’ve been tipped off that Samro plans to sell the R100-million Samro House building without members’ permission. It is alleged that about three board members and an executive opposed this illegal act,” wrote Sithathu.
“The biggest mystery about Samro investing members’ money in buildings and other ventures is that musicians, the actual members, see little to no tangible benefit.
“This is evident in the meagre amounts paid to musicians, while multinational corporations and major music publishers walk away with millions [of rands] from broadcasters like the SABC, MultiChoice, and others.
“The greatest injustice at Samro is embedded in its memorandum of incorporation, which vests all power in the hands of major music publishers.”
Samro was approached for clarity and to confirm or deny whether it is planning to sell the building. It responded, “The Samro board has not taken any decision related to the sale of the Samro building.”
