‘Evasive’ McKenzie accused of ignoring MGE funding scheme scandal

A political storm is brewing in the Department of Sport, Arts and Culture as MP Leah Potgieter, of the DA, has accused minister Gayton McKenzie of turning a blind eye to serious irregularities in the Mzansi Golden Economy (MGE) funding scheme – a programme already mired in allegations of corruption, political interference and poor oversight.

Potgieter questioned the minister on what measures were applied before approving funding to deregistered or non-compliant companies, including entities linked to executives of the Cultural and Creative Industries Federation of South Africa (CCIFSA).

Her inquiry follows McKenzie’s own previous remarks branding CCIFSA a “criminal organisation” and his public commitment to eradicate corruption within the arts and culture sector.

Potgieter also pressed McKenzie on allegations that the MGE adjudication panel lacked clear selection criteria, failed to follow conflict-of-interest protocols, and included individuals affiliated with a political party, a development she said could have compromised the integrity of the funding process and advanced certain applicants unfairly.

But McKenzie defended the department’s procedures, describing the MGE funding process as “highly time-sensitive” and designed to handle a large volume of applications efficiently.

“Initially, the application verification only confirms that all required documents have been submitted without an in-depth content check, considering the time sensitivity. After recommended applications are approved for funding, a more elaborate process is initiated to fully verify the applicant, their organisation, and details of directors in the organisation.”

He insisted that all guidelines and protocols were followed and dismissed the claims of bias or misconduct as allegations, not facts.

“The panelists brought a range of diverse expertise and experience to the process. Their profiles have already been provided to you in reply to an earlier question,” McKenzie said.

“If you have evidence of any applicant benefiting from MGE due to any conflict of interest, it may be time for you to bring this to light with specific details instead of alluding to vague allegations.”

Asking for ‘proof’ a deflection

Potgieter, however, was far from satisfied with McKenzie’s response, describing it as evasive and deflective.

 “The minister’s response on the MGE funding process and composition of the advisory panel is evasive. It deflects responsibility by asking for ‘proof’ of issues that are already apparent from systemic weaknesses in the MGE funding process,” she told Sunday World.

She accused McKenzie of failing to address fundamental questions about due diligence, compliance and political impartiality.

“It fails to explain why public funds were approved for deregistered or non-compliant entities, or how the integrity of the adjudication panel was protected given the political affiliations of some members.

“It also fails to respond to complaints received by the committee in September, which the minister is aware of and has access to.”

Potgieter further alleged that the MGE advisory panel’s independence was compromised by the involvement of individuals linked to McKenzie’s own political party, the Patriotic Alliance (PA).

“As an example, the MGE chairperson omitted his role as PA spokesperson from his CV, creating a four-year employment gap outside of his board membership on the PA-run MTC Board in Johannesburg.

“Vernon Vraagom’s CV shows he has been employed as a PA representative since December 2024 and a PA councillor for over a year prior. This omission, combined with their active political involvement in a party led by the Minister himself, raises legitimate concerns about the independence and integrity of the panel,” said Potgieter.

She said she would continue to pursue the matter until the minister provides full documentation on all due diligence checks, funding decisions and panel appointments.

“I have already written to the chairperson of the committee on 14 October 2025, requesting that the minister and the panel be summoned to provide a thorough explanation and to account for why they initially tried to hide these facts,” she said.

The MGE initiative was established to boost job creation and sustainability in the creative industries. But the latest revelations raise urgent questions about whether the programme has been repurposed into a vehicle for political patronage.