Corruption, nepotism, and maladministration have allegedly brought Downtown Music Hub (DTMH) to its knees.
These allegations are detailed in a 2020 letter written by the chairperson of the board, Rudolph Mamabolo, and addressed to the Department of Sport, Arts and Culture official Zwelakhe Mbiba.
In the letter, Mamabolo accused the former Minister of the Department of Sports, Arts and Culture (DSAC), Nathi Mthethwa, of nepotism and of ensuring that Mpume Mabuza was appointed as CEO of DTMH. He went further, accusing Acting Director-General Cynthia Khumalo, Dr Ezra Ndwandwe, and Mabuza of being involved in a corrupt relationship.
Irregular appointment of CEO
The letter reads: “During the course of 2019, DTMH began the process of recruiting a permanent CEO [of DTMH]. A recruitment process was initiated.
“During the recruitment process, I overheard a telephone conversation involving one of the board members, Dr Ezra Ndwandwe, who was speaking to someone about a certain lady who was expected to become the CEO of Downtown Music Hub. He stated that she was the minister’s choice.
“I confronted Ndwandwe about the matter, and he claimed that it was a completely different issue that I had overheard. The interviews were conducted, and Mpume Mabuza, a former CEO of uShaka Marine, was selected and employed.
“I then resumed my role as acting chairperson of the DTMH board. The board tasked me with introducing the new CEO to the shareholder. And the latter was represented by Dr Cynthia Khumalo, DSAC Deputy Director-General.
Conflict of interest
“At the introductory meeting, it was myself, Mabuza, Khumalo, and the Company Secretary, Mrs Ziyanda Skade. I requested that all parties declare their interests at the start of the meeting. To my surprise, both Mabuza and Khumalo revealed that they had worked together for a long time.
“I then confronted Ndwandwe, stating that Mabuza and Khumalo had previously worked together at uShaka Marine, and that Mabuza had not disclosed this relationship during her interview.”
He further claimed that Ndwandwe drafted Mabuza’s contract. And to the board’s surprise, her salary package was negotiated at R1.3-million plus a 10% bonus when she raised funds. This was done without board approval or resolution.
“The board then requested a legal opinion regarding the salary package. The legal opinion confirmed that Ndwandwe had no authority to conclude or sign the contract with a R1.3-million salary and a 10% fundraising bonus without board approval,” said Mmamabolo.
Nepotism
He also accused Mabuza of nepotism. “Our CEO is on a mission to employ senior staff through corruption and nepotism. For instance, the financial manager and marketing manager were hired without following due processes,” Mmamabolo claimed.
Mamabolo, who was removed as chairperson in 2020, told Sunday World that he wrote to DSAC seeking intervention but was ignored.
“I asked DSAC to investigate these allegations, but I was ignored. Instead, I received death threats and was barred from entering the building. The lack of interest from DSAC was a clear sign for me to leave DTMH,” he said.
Advocate Lefelane Shaku, who was also a board member, said he also resigned due to irregularities at DTMH.
Irregular salary package
“The main issue for me was the R1.3-million contract, which was unregulated and irregular. I could not associate myself with such conduct. And I knew that one day it’d come back to bite us, so I didn’t want to be part of it,” he said.
An inquiry was sent to DSAC and Mthethwa, but they failed to respond.
DTMH has promised to respond on Wednesday, 30 April 2025.
Earlier this month, Sunday World reported that a former acting CEO of DTMH is accused of having mismanaged the company.
Entity used as cash cow
Multiple sources who worked at DTMH allege that the institution was long exploited as a cash cow by the former chief executive, whose name is known to Sunday World, and the Cultural and Creative Industries Federation of South Africa (CCIFSA).
However, when contacted for comment, the former Downtown Music Hub boss said he was merely a board member.
“I was not at the helm of that institution but a board member. And I served on the board for five years from 2010. I know nothing about the funds because I was not involved in finances or management. Our task was to revamp the place, and that’s what we did. I left the place in good order, including the lifts,” said the former CEO, who cannot be named due to legal reasons.
The allegations against the former CEO come after Sunday World‘s attempt to trace where over R93-million that was paid by the Department of Sport, Arts and Culture (DSAC) over nine financial years has drawn a blank.
This is because no one wants to claim ownership of Downtown Music Hub (DTMH), meaning the R93-million that the department has channeled into the music hub remains unaccounted for.
