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 channelled into the music hub remains unaccounted for.
Inside sources told Sunday World that the DSAC has been pouring millions of rands into the DTMH bank account. However, the money has not benefitted local artists.
Department distances itself from the saga
“Between DSAC and the National Arts Council (NAC), we’re not sure who controls the Downtown studio purse. Our understanding is that NAC owns DTMH but the DSAC controls it and plays an oversight role over it.
“This strange arrangement has enabled government funds to be stolen,” alleged the source.
However, in their response to Parliament, the department distanced itself from DTMH.
The DSAC Minister, Gayton McKenzie, said: “The NAC, an entity of DSAC, owns the entire asset, which was purchased in 2008. Since then, about R93, 308, 001 has been provided as a grant to support the project.”
However, the NAC marketing and communications unit revealed that they were merely used as a conduit to buy the building and have no control over it.
National Arts Council also denies responsibility
“DTMH was initiated by the department of arts and culture in 2008. This 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.
“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 DTMH as an asset of the NAC.”
But when NAC was asked to account for the R93-million, they failed to do so.
DTMH was also asked to account for the money, and they too failed to do so.
The R93-million was paid to DTMH between the 2008/2009 and 2024/2025 financial years.
How the funds were distributed
The funds were distributed as follows:
- 2008/2009 an amount of R7,509,560 was paid for the initial investment in purchasing the asset and funding operations;
- 2009/2010, 2010/2011 and 2011/2012 an amount of R3-million was paid for operations;
- 2012/2013 an amount of R3,823,441 was paid for operations;
- 2013/2014 and amount of R20-million was paid for grants and infrastructure;
- 2015/2016 an amount of R5.5-million was paid for operations;
- 2016–2018 an amount of R11,975,000 was paid for operations;
- 2019/2020 an amount of R7.5-million was paid for operations;
- 2020/2021 to 2023/2024 an amount of R6-million was paid for operations; and
- 2024/2025 an amount of R4-million was paid for operations.
Another source said: “We’re not sure how the R93-million was actually spent. And this is because nothing is transparent in that institution. We’re not even sure if the money reached DTMH.
“But I know DSAC is misleading the public, they actually own Downtown Studios. They cannot distance themselves from it.
Blame put solely at department
“The NAC has no control over DTMH. I know this because I sit in NAC board meetings. In fact, everything pertaining to DTMH falls directly under DSAC. Even the board is appointed by the Minister of [DSAC], and the NAC has no role in that institution.”
A board member from DTMH, who preferred to remain anonymous, said: “We’ve also questioned the ownership of Downtown studios. But DSAC and NAC have never given us a clear answer. Our understanding is that there was an arrangement between DSAC and NAC. And as a result [of the arrangement], DSAC controls Downtown studios.
The board member said they were “actually appointed by the former DSAC Minister, Nathi Mthethwa”. Mthethwa exited the portfolio in 2023.
