The South African Music Rights Organisation (Samro), which administers the rights of musicians, publishers and composers among others, has been hauled to court over allegations that it plundered more than R60-million meant for its artists.
A service provider, Away From Here Trading and Projects, trading as One Rights Management (ORM), owned by the former soccer commentator and businessman Owen Ndlovu, filed documents at the Johannesburg Magistrates’ Court, stating that Samro board members had stolen funds and paid them into the accounts of publishers, top record labels and board members.
In his affidavit, which he filed on Tuesday, Ndlovu said that he is one of the 25 000 members of Samro, and also stated that he is one of the whistleblowers of the alleged heist.
“I am one of the directors of ORM, the company contracted to Samro to deliver on-air data music reports so that marginalised artists can receive their royalties,” reads Ndlovu’s affidavit.
ORM states in court papers that its contract was terminated because Ndlovu had opened a corruption case against the CEO of Samro, Annabell Lebethe and the entire board following its failure to suspend board members he accused of stealing funds.
Ndlovu also said Samro had refused to release the forensic report fingering board members linked to the alleged heist.
He said Lebethe and the Samro chairperson, Nicholas Maweni, were protecting the board members he fingered.
ORM provided the court with the forensic report’s list of more than 60 Samro members the company claims benefited from funds allegedly paid to them fraudulently.
Sunday World has established that Fundudzi Forensic Services investigated Samro’s affairs after it was appointed in June 2022.
In the final report we have seen, Fundudzi stated that based on its investigations, top record labels Sony Music Publishing, EMI Music, Sheer Publishing and Universal Music among dozens of other companies, publishers and individuals, were paid millions of rands.
However, the investigation stated the monies were illegally paid to the recipients by Samro.
In a meeting held on December 7, 2022, where Maweni was presenting the outcomes of the forensic investigations, he said: “The investigations showed that former employees, familiar with the system, sold their services to publishers. These individuals likely submitted the R3.4-million claim. From the top 60 claiming publishers, authors and composers, R60-million was claimed and R30-million was paid out.
“Following the investigation, the report indicated a legal obligation to report the matter to the police, consequently, a criminal case was opened. It was recommended that a further extensive forensic investigation be conducted,” said Maweni.
Maweni also added that Samro members expressed concerns regarding the report, where they had requested that individuals who unduly enriched themselves be held accountable and repay the money to the organisation. “Further, they recommended filing a court application to declare the implicated board members delinquent,” said Maweni.
However, Ndlovu in his affidavit raised concern that implicated board members are still sitting on that board.
Lebethe said in response to Sunday World’s enquiry that Ndlovu’s complaints are unrelated to the forensic investigation and the corrective measures it has implemented.
“Samro wishes to state unequivocally that the forensic report remains confidential and forms part of an ongoing criminal investigation conducted by the SAPS and the Hawks. At this stage, Samro will not comment on the report’s contents or engage in any public discourse that could compromise the integrity of the investigation.”
