The Auditor-General of South Africa (AGSA) has defended its findings against the Downtown Music Hub (DTMH).
The AG emphasised that the Department of Sports, Arts and Culture (DSAC) bears ultimate responsibility for ensuring that all expenditure is supported by appropriate and credible documentation.
“Downtown Music Hub is a non-profit organisation (NPO) that receives funding from the… DSAC. It is worth noting that in terms of its statutory mandate, the AGSA audits the department (DSAC), not the DTMH, which is not a public entity.
Missing documents
“As per standing audit procedures for annual regularity audits, during DSAC’s audit for the 2024/25 financial year, the AGSA requested from the department all relevant documentation pertaining to the areas under review. This is including records of payments made by DSAC in the form of transfers and subsidies to various NPOs, entities, and other beneficiaries.
“It remains the responsibility of DSAC to ensure that all expenditure is substantiated by appropriate and credible supporting documentation. Audit findings and conclusions arising from the audit review were formally communicated to DSAC management. And responses were duly received from the department,” said AGSA’s spokesperson Africa Boso.
Sunday World previously reported that the DTMH board rejected the AGSA’s report. It labelled it inaccurate and misleading.
They placed the blame squarely on DSAC for losing critical documents, which they argue led to the adverse audit findings.
DTMH denies irregularities
“We believe it is not factually accurate to suggest that funding was allocated strictly according to the department’s guidelines. If the AG holds a differing view, we recommend addressing this inquiry directly with DSAC,” the board told Sunday World.
The board further stated that they have consistently reported their financial activities to DSAC. And they have never been informed of any irregularities.
On October 14, AGSA told parliament that funds allocated to DTMH were not used for their intended purpose.
Earlier this year, Sunday World reported that unpaid DTMH employees took the entity to court. They approached the Commission of Conciliation, Mediation and Arbitration. This prompted McKenzie to cut its funding and shut it down. The sheriff has since attached DTMH assets.
The DSAC indicated that they will be able to respond on Tuesday, October 21.
