The Portfolio Committee of Sports Arts and Culture has called for a forensic investigation into the Cultural and Creative Industries Federation of South Africa (CCIFSA).
On Tuesday, the committee heard how CCIFSA allegedly committed money laundering, maladministration, fraud and corruption.
Ex-CCIFSA president Joy Mbewana, and former treasurer, Mangaliso Mtshula, presented the federation’s financial statements. But they were rejected.
In her presentation, Mbewana made accusations against Sports Arts and Culture (DSAC) Minister Gayton McKenzie. She accused him of destroying their work and starting everything afresh.
Federation’s ex-boss blames Minister MacKenzie for meddling
“The money that should be used to finish CCIFSA projects is now being dangled in front of the industry. CCIFSA is not going anywhere. We will come back here and report if the minister blocks the funds for this organisation.”
She demanded that the DSAC pay for their conference because they are doing a good job.
Mbewana voluntarily disclosed that CCIFSA received R12-million from DSAC. She said they used it for the benefit of artists.
But these statements were quickly disputed by portfolio committee member Eugene Mthethwa. He explained that the R12-million was unlawfully transferred into their account.
“The R12-million that you are mentioning was for Usiba Awards. It had nothing to do with CCIFSA. Now we need to know why the department uses a CCIFSA account. Why did the minister not follow proper processes?” asked Mthethwa.
Mthethwa is adamant federation’s report is fraught with irregularities
Mthethwa also alerted the committee that Mbewana and Mtshula were presenting a fraudulent report. He told Mtshula not to play with numbers because there is evidence of fraud and corruption.
“I know for a fact that these financial statements are fraudulent because there’s never been an annual general meeting. When we demanded them, they were not there. I also want to know when and who adopted these financial statements. Because they should have been adopted at an AGM,” said Mthethwa.
“I reported this fraud and corruption to the department and they did nothing. So I want to know why the DDG and her officials must not be declared delinquent?” asked Mthethwa. The DDG referred to is Dr Cynthia Khumalo.
Chairperson of portfolio committee, Joe McGluwa, quizzed Zwelakhe Mbiba from DSAC about the R12-million. He also could not answer.
R12m unlawfully paid into federation’s account
“The R12-million was for uSiba Awards and not for CCIFSA. I don’t know where the money came from and I don’t know why the department used CCIFSA’s account. Everything was discussed at a senior level. And it came down to us for implementation,” responded Mbiba.
Another portfolio committee member, Gezani “Papa Penny” Eric Kobane, also confirmed the debacle. He said that there was a lot corruption at CCIFSA.
“I know that fraud and corruption were happening at CCIFSA. DSAC was alerted but they never acted on it.”
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