ATC210422: Report of the Portfolio Committee on Sport, Arts and Culture on the visit to the Performing Arts Centre of the Free State; National Arts Council; National Film And Video Foundation; Odi Stadium And Hm Pitjie Stadium 06-09 April 2021, Dated 22 April 2021

Sports, Arts and Culture

REPORT OF THE PORTFOLIO COMMITTEE ON SPORT, ARTS AND CULTURE ON THE VISIT TO THE PERFORMING ARTS CENTRE OF THE FREE STATE; NATIONAL ARTS COUNCIL; NATIONAL FILM AND VIDEO FOUNDATION; ODI STADIUM AND HM PITJIE STADIUM 06-09 APRIL 2021, DATED 22 APRIL 2021

 

  1. Introduction and Background

 

  1. The Portfolio Committee on Sports, Arts and Culture (“the Committee”) undertook an oversight visit to the Free State and Gauteng Provinces from 6 April to 9 April 2021. The primary purpose of this visit was to investigate the rollout of the COVID-19 relief fund and the Presidential Employment Stimulus Programme (PESP) for the Arts, Culture and Heritage (ACH) sector.

 

  1. The Committee conducted oversight visits to the following entities:

 

  • The Performing Arts Centre of the Free State (PACOFS) in Bloemfontein, Free State;
  • The National Arts Council (NAC) in Johannesburg, Gauteng; and
  • The National Film and Video Foundation (NFVF) in Johannesburg, Gauteng.

 

  1. The Committee also conducted walk about site visits at the following stadia:

 

  • ODI Stadium, Mabopane, Gauteng
  • HM Pitjie, Mamelodi, Gauteng

 

The Committee’s approach to these oversight visits was to meet with different stakeholders in orderto ascertain the nature of the problems at the sites and to determine how these could be resolved. The Committee holds a view that in order for these institutions to improve their performance, every stakeholder should strive towards a solution.

 

This report outlines a summary of issues that emerged during the oversight visit and it further provides recommendations by the Committee.

 

 

  1. COMPOSITION OF THE DELEGATION

 

  1. Members

Ms. B Dlulane (Chairperson and leader of delegation); Mr. A Seabi (ANC); Mr. JB Mamabolo (ANC); Mr. MA Zondi (ANC); Ms. R Adams (ANC); Ms. VP Malomane (ANC); Mr. TW Mhlongo (DA); Ms. V van Dyk (DA); Mr. BS Madlingozi (EFF); Mr. CHP Sibisi (NFP)

 

  1. Parliamentary Support Staff

Ms. A Mtiya (Committee Secretary); Mr. S Mthombeni (Acting Content Advisor); Mr. J van der Westhuizen (Committee Assistant) 

 

  1. Department of Sport, Arts and Culture

Mr. V Ndima (Deputy Director General); Dr. C Khumalo (Deputy Director General); Ms. P Ben-Mazwi (Director); Mr. S Tsanyane (Director); Mr. S Watani (Parliamentary Liaison Officer); Ms. T Mpanza (Acting Deputy Director); Mr. S Nkanunu (Parliamentary Liaison Officer); Mr. C Mabaso (Chief Director); Mr. D Chabalala (Deputy Director) 

 

  1. Performing Arts Centre of the Free State

Council: Advocate T Moeeng (Chairperson of Council); Mr.K  Moshounyane; Ms. N Mosala; Mr. K Thulo; Ms. M Kganedi; Mr. A Latchu; Ms. P Maseko; Mr. S Mbengo                           (Company Secretary)

 

Management: Mr. M Xaba (Acting CEO/Artistic Director); Mr. S Sanyane                            (CFO); Ms. M Motete (Management Accountant); Mr. T Lengau (                    Financial Accountant); Mr. D Sekome (OHS and Security Manager); Mr. P Moeketsane (Maintenance Manager); Ms. TToolo (Senior Marketing and Communications Manager); Mr. M Lesenyeho (Artistic Manager); Mr. K Morake                      (Acting HR Manager); Mr. SLeeuw (Audience Development Specialist); Mr. A Geyer (Electro Mechanical Manager)

 

Unions:

 

NEHAWU: Mr. T Mohapi (Branch); Mr. J Makhubo (Provincial); Mr K Selebedi (Regional secretary); Mr. T Molebetsi (Branch); Ms. K Mapane (Regional Coordinator)

 

SALIPSWU: Mr. J Seonya (Deputy General Secretary); Mr. S Kgowe (Provincial Secretary); Mr. S Grootboom (Provincial Organiser); Ms. Julia Mokhutle (Branch Secretary-PACOFS Branch)

 

Artists:Mr.M Nqodi; Mr. G Pholo; Mr. M Earnest; Mr. T Mzuzwana; Ms. I Molehe

 

  1. . National Arts Council

 

Council: H.R.H C Princess Dlamini (Acting Chairperson); Dr. S Sithole; Mr. A Latchu; Mr. B Tembe; Mr. T Mashiane; Mr. G Mbuyane; Mr. M Arendse; Mr. J Chisekula; Mr. M Masia; Ms. L Swart; Ms. T Nogabe

 

Management: Ms. J Diphofa (ACEO); Ms. R Bhoola (Acting CFO); Ms. K Dingoko (Communications Manager); Ms. T Phetla (Communications and Marketing); Ms. R Katz (Senior Projects Manager); Ms. L Ngcobo (Acting Arts Development Manager)

 

Artists: Ms. S Mngoma; Mr. B Ntombela; Ms. B Mbotole; Ms. T Hlahla; Ms. V Ndlovu; Ms. P Sibiya;Mr. T akaMbongo; Mr. Y Headman; Ms. E Nteso; Ms. D Mookodi; Ms. S Mahlaba; Mr. T Tahn

 

  1. National Film and Video Foundation

 

Council: Ms. T Ncheke (Chairperson); Dr Jeremiah Mofokeng (Deputy Chairperson); Ms M Letoaba; Mr S Mkhungo; Mr. L Seeco; Ms. N Matlala; Ms J Hall; Adv S Ncube; Mr S Zondi; Mr M Mpherwane; Ms N Matlala

 

Management: Ms M Khanyile (CEO); Mr Z Koyana (CFO); Ms N Mda (Head of Operations); Ms Y Ncokotwana (Acting Head of Industry Development and Production); Ms T Mayinje (Head of Human Resources); Mr S Mvelase (Stakeholder Manager); Ms Prudence Swarts (Company Secretary); Ms. S Zwane (PA to CEO)

 

  1. Cultural and Creative Industries (National): Mr. OT Ndlovu; Mr. SX Dlamini;

Mr. JL Msomi; Mr. LKhohli

 

 

  1. The Performing Arts Centre of the Free State (PACOFS)

 

  1. Introduction

 

As per the Public Finance Management Act (No. 1 of 1999), the performing arts institutions are schedule 3A public entities established in terms of the Cultural Institutions Act (No. 119 of 1998, as amended). They are mandated to advance, promote and preserve the performing arts in South Africa; enhance the contribution of arts and culture to the economy; and create job opportunities and initiatives that further nation-building and social cohesion. PACOFS is a flagship of theatre activities in the Free State Province, the central region of South Africa in Bloemfontein. It is a playhouse where an environment is provided for artists to practice and perform their different art forms. The entity hosts annual seasons of classic and contemporary South African, African and international theatre productions. The theatre complex is a major community and cultural resource for people of the central parts of South Africa and Lesotho. It aims to develop both new works and Free State artists through its arts development program. One of its objectives is to play a role in the bigger picture of the South African theatre scene by encouraging touring productions and providing employment and career opportunities for creative and administrative staff.

 

  1. Presentations

 

  • A forensic investigation was commissioned by the previous Council pertaining to complaints lodged against the Artistic Director.

 

  • Some creatives have staged a sit-in demanding that the Artistic Director be dismissed from PACOFS, citing the findings of the Morar investigation report.

 

  • Creatives are also demanding to be involved in decision making at PACOFSin relation to who performs at the institution.

 

  • A second investigation was commissioned by Council after complaints of nepotism against theChief Executive Officer(CEO) were reported.

 

  • The CEO was suspended by the previous Council. Disciplinary proceedings are underway.

 

  • The Department referred the matter of the protesting artists to the Council, which has moved swiftly to engage with the artists.

 

  • Council also took a decision that they will implement the recommendations of the Morar report.

 

  • The Acting CEO will be asked to step down from that position. The Department has facilitated that a CEO from another public entity (National Museum, Bloemfontein) be seconded to act as CEO at PACOFS while Council deals with the outstanding matters.

 

  1. NEHAWU AND SALIPSWU Presentation

 

  1. The unions indicated that PACOFS has technically collapsed on the basis that it is failing to execute its core business as a public entity.They further indicated that Management, different boards from the previous to the current newly appointed board (of which some members are even implicatedin the Morar report), as well as some members of the previous Portfolio Committeewho allegedly provided security to their personal friends,have all contributed to the collapse of the institution and are said to have advanced personal interests. The Ministry is also implicated, with their lack of prompt response to issues when raised and/or registered with the office of the Minister. Someofficialswho were also easily influenced by some figures in management to do ill deeds against other colleagues have also contributed to the collapse of PACOFS.

 

  1. They proposed that immediate disciplinary action must be taken against those implicated in the Morar and Bonakude reports, which included the ACEO, CFO, SCM & AHRM. They further proposed that the institution be placed under administration for a period of two to three years in order to renew and rescue it from total collapse. It was also suggested that a system overhaul with a skills audit be conducted. Additionally, it is recommended that all the outsourced duties at the institution be insourced.

 

  1. Observations

 

  1. Leadership

 

  • The CEO is on suspension since November 2020.

 

  • The Acting CEO, who is the Artistic Director, is currently implicated in the Morar’s forensic investigation report, yet he has not been placed on precautionary suspension.

 

  • The CFO is also implicated in the Morar’s forensic investigation report, and is also reporting for duty.

 

  • The Human Resource (HR) Manager is also implicated in the Morar’s forensic investigation report, and is also reporting for duty.

 

  1. Allegations of sexual harassment of Junior Staff

 

  • There have been allegations of sexual harassment of junior staff members by the CFO. Astaff member was even checked into a psychiatric hospital. The matter has been reported to the Council, law enforcement officers, and senior management, but there has been no progress.

 

  • Junior staff have also made allegations of abuse of authority by the HR Manager.

 

  • These allegations have been reported to senior management, Council and Law Enforcement Agencies without any progress.

 

  1. Qualifications of management

 

  • The Unions alleged that the majority of people in management position do not possess the necessary qualifications or skills for the positions they occupy.

 

  1. Multiple council memberships

 

  • It was alleged that there is perpetual recycling of council members who have a history of poor performance on other boards.

 

  1. Implementation of the recommendations of the forensic reports

 

  • There is no consistent implementation of recommendations of the forensic investigation reports and there seems to be a selection on who to act.

 

  • There are also delays in the implementation of the recommendations.

 

  • Proper processes are not followed when acting on the recommendations of the forensic report.

 

  1. Funding for Forensic Investigations

 

  • The Committee observed that commissioning of the forensic investigations came with significant costs.

 

  1. Legal Fees

 

  • The Committee was informed that management continues to fight and frustrate staff through legal channels using the budget meant for core business.

 

  • There have been numerous court cases at PACOFS which have been paid by the tax payer to frustrate staff and unions.

 

  • There continues to be favoritism towards using certain service providers in the management of legal battles against staff.

 

  • The outsourcing of a commissioner who works for the Commission for Conciliation, Mediation and Arbitration(CCMA) to settle staff disputes was also a problem.

 

  1. Recommendations

 

As a result of this information and observations, the Committee made the following recommendations:

 

  1. The implementation of the recommendations of the Morar and Bonakude forensic reports must be expedited by the Performing Arts Centre of the Free State(PACOFS) council.

 

  1. The council should take the necessary steps to fill all the vacant managerial posts to reduce the number of acting staff in vacancies.

 

  1. The Council must provide a report to the Committee on its handling of sexual harassment allegations against management.

 

  1. The Council is to review the qualifications of management at PACOFS and take the necessary action against those who are not suitably qualified for the posts they occupy.

 

  1. The Committee requests that the Council review the expenditure on internal legal battles between junior staff and management.

 

  1. The Department of Sport, Arts, and Culture to review their policy on Council members serving on multiple councils within the same sector.

 

  1. The Department of Sport, Arts, and Culture should also review concerns that council members are recycled, especially those that have been performing poorly in other councils.

 

 

  1. National Arts Council (NAC)

 

  1. Introduction

 

The NAC derives its mandate from the National Arts Council Act (No. 56 of 1997), which requires it to develop and promote excellence in the arts by providing and encouraging the provision of opportunities for people to practice the arts. This requires distributing funds to beneficiaries, arts companies and organisations to enable them to create artistic products and implement projects that develop the arts. As redressing past imbalances is pivotal to the work of the council, it needs to ensure that funding is allocated equitably across provinces and to various groups of people. The council promotes transformation, social cohesion and nation building through its investment in championing, developing, enabling and promoting the arts. To improve the geographical spread of funding over the medium term, the council will increase funding allocations in previously marginalised communities, especially to women, young people and people with disabilities.

 

The Committee conducted its oversight visit to the National Arts Council (NAC) on 07 April 2021.

 

  1. Presentation

 

  • The total transfer from the Presidential Employment Stimulus Programme (PESP) to the NAC was R300million. Of this 5% (R15 million) was set aside for administrative management fee.

 

  • Funding was disbursed through two streams.

 

  • Stream 1 offers support for employment retention in the cultural and creative institutions and organisations, and was allocated R85 million.

 

  • Stream 2 was designed to create work opportunities in the cultural and creatives industries and was allocated R200 million.

 

  • On 01 January 2021, the NAC Council was appointed to commence its 4-year tenure. Their induction commenced on 12 of January 2021;

 

  • On 24 January 2021, NAC management presented the PESP programme to new Council Members.

 

  • On 30 January 2021, the Council was alerted to a letter that had been sent by one of the NAC Panel Members to the Minister alleging mismanagement of the PESP process at the NAC.

 

  • This Panel Member’s letter listed over 30 transgressions that needed to be investigated related to the PESP process, which then led to the new Council requesting more detail relating to the PESP from the CEO, CFO and Senior Project Manager. 

 

  • As the Council requested further information, it became apparent that the CEO, CFO and Senior Programme Manager were not forthcoming with crucial information that would have assisted Council in moving the PESP programme at the speed at which it was required. 

 

  • The Council probed further and discovered the following:

Funds allocated to the PESP were grossly overcommitted;

  • PESP funding allocated was R300 million, and the NAC had approved applications to the value above R600 million, leaving a shortfall of over R300 million;
  • Of the 1374 applications that were approved, only 613 had been selected for funding, to the exclusion of the second group of an additional 761 approved applicants;
  • In addition, it was discovered that some applicants from the first group, (613) had been approved and contracted for more funding than they had requested.

 

  • The Council has been seeking external legal opinion on whether funding the first group of 613, and excluding the second group of 761 would have legal consequences.

 

  • The legal opinion that was requested stated that all successful applicants had the right to be treated in a way that is lawful, reasonable and procedurally fair.

 

  • Council also further sought an extension from their shareholder, the Department of Sport, Arts and Culture to extend the deadline of project completion to 30 May 2021, to give applicants more time to re-adjust the project timelines because of the delay. This was granted.

 

  • Council then restructured the R300million. Guiding figures that had been introduced,ranging from R16,600 up to R25,000 per jobwere then revised to R10,895 per job. This then allowed all the beneficiaries approved to receive funding based on the following principles, as approved by Council.

 

  • The ceiling of R2 million would be applied to all the applicants and would be aimed at projects of national significance implemented on a large scale.

 

  • No organisation would be funded for more than one project within the same Stream

 

  • The Council indicated that the risks of legal challenges from unhappy beneficiaries were inevitable as they had already received letters of demand from legal representatives of some beneficiaries (less than 15 organisations);

 

  • South African Arts and Culture Forum (SAACYF) brought an urgent interdict against the NAC; the matter was enrolled at the Johannesburg High Court. They were seeking an interdict “prohibiting the NAC from withholding payments”, “until such time as payments are made out by the NAC. The matter was heard but struck off the roll with costs, including costs of counsel.

 

  1.  Presentation by protestingartists

 

During their presentation to the Committee, the protesting artists indicated that they wanted the NAC Council and management to answer the following eight questions. These questions are listed below, verbatim.

 

  1. List of all those who have been paid through the PESP and how much?

 

  1. Is Stream 1 completed? Who was paid? How much? Since it was undersubscribed why were payments not made?

 

  1. On Stream 2, they requested a full list of those contracted; a full list of those announced (letters), and a full list of those not yet announced.

 

  1. Full list of all the 1300 PESP recipients.

 

  1. When are payments being finalizedfor all those who signed their contracts?

 

  1. When are payments and contracts being finalized for all those still awaiting contracts?

 

  1. When are payments, contracts and letters beingfinalized for all those still under review?

 

  1. When will all those who have been rejected be notified?

 

The artists noted the following concerns to the Members:

 

  • There was a slow pace of payment for those who have been approved and have signed contracts.

 

  • The NAC hasbreached their own contracts that were signed by artists and companies by forcing people to sign off on budgets that are cut by 70%.

 

  • There were intervention measures by the new NAC Council members who also had interests in the PESP as beneficiaries, which was a clear conflict of interest.

 

  • Minister Mthethwa and DSAC have been silent on the matter.

 

  • Funding allocated to Sport, Arts and Culture was being used to fund companies that are not involved in the sector.

 

  • An allocation of R10 980 has been tabled; and this amount would be spread/divided over three months.

 

The artists requested the following demands to be met before they evacuate the NAC premises:

 

  • They object to a forensic investigation headed by the DSAC. They indicated that DSAC wants to find a scapegoat. The artists insistedon an independent audit by the Auditor-General as the PFMA makes provision for this.

 

  • The Committee must appoint an independent mediator between themselves, the NAC and the DSAC.

 

  • All NAC Council members who have benefited from grants must be recused from Council until the investigation is concluded so that they do not interfere or influence the processes.

 

  • The trust relationship between the NAC and the arts sector has been irretrievably broken. The Council must be dissolved and a new Council must be appointed in terms of the Cultural Institutions Act.

 

  • The NAC’s interdict to evict the artists must be stalled until the Committee appoints an independent mediator.

 

  • The NAC to resolve all disputes through a mediator and not through the courts.

 

  • Access must be granted to the three documents that the DSAC Acting DG promised to provide on 14 March 2021:

 

  1. MOU between the DSAC and the NAC regarding the administration of the PESP.
  2. The previous Council’s resolutions regarding the PESP.
  3. The previous Council’s handover document.

 

  1. Observations

 

  1. Disbursements of PESP payments to council members

 

  • The Committee observed that five council members were associated with companies or organizations that received PESP disbursements,resulting in a possible conflict of interest.

 

  1. Allocation of PESP to artists

 

  • The entity had overcommitted in terms of the PESP funds available for disbursement.

 

  • There were incidences where applicants received more funds for which they had applied. The entity took responsibility for the error of overpaying the applicants and will not recover the funds lost.

 

  • Members were concerned about the slow progress in the distribution of the PESP funds, which led to the deadline of full payments being shifted from the 31 March 2021 to the 31 May 2021.

 

  1. Contracts

 

  • It was observed that the NAC did not honour the contracts signed with some of the artists and companies that would benefit from the PESP.

 

  • Non honouring of the contracts has already led to litigations by some of the companies for breach of contract, whereby the outcomes were in favour of the applicants.

 

  1. Multiple council memberships

 

  • There was a growing concern that there are Board and Council members serving on numerous boards within the same sector.

 

  • It was alleged that the NAC and other cultural and creatives entities recycle board and Council members, including those that have been historically implicated in wrongdoing where they served previously.

 

  1. Poor Response rate

 

  • Members noted that communication between the NAC and the external parties is poor. There are artists who indicated that there are always delays in receiving feedback on inquiries raised with the NAC. The NAC is also accused of withholding and gatekeeping of information to avoid public scrutiny.

 

  1. Allocation of funds to non-arts projects and deregistered companies

 

  • There were allegations of the distribution of PESP funds to non-compliant, deregistered companies, and also companies not related to the arts sector.

 

  1. Sit-in Protest

 

  • The Members of the Committee met with artists staging a sit in protest at the NAC offices in Newtown, Johannesburg and noted all their concerns with regards to the handling of the PESP funds.

 

  1. Implementation of the White Paper

 

  • The White Paper on Arts, Culture and Heritageforms part of the process of legislating the cultural and creatives sector, yet its legislative process has rather been slow.

 

  1. Recommendations

 

  1. The NAC to fast-track the transfer of funds to all the approved beneficiaries of the PESP funds.

 

  1. The entity should honour its contractual obligations with the affected artists to avoid further legal challenges and reputational damage.

 

  1. The issue of members serving on multiple councils was again raised at the NAC. Therefore, DSAC is to review their policy on Council members serving on multiple councils within the same sector.

 

  1. The issue of recycling of council members was again raised at the NAC and thus the DSAC is to review concerns of recycling of council members, especially those that have been performing poorly on other councils. 

 

  1. The NAC is to implement an external communication mechanism in order to improve communication and feedback between the entity and other parties as well as to respond speedily to external queries. This plan must be presented to the portfolio committee and other stakeholders.

 

  1. The forensic investigation instituted by the Department must include the alleged non-arts, non-compliant, and deregistered companies that have benefited from the PESP funds meant for the creatives industry.

 

  1. Negotiations on meeting the demands of the sit-in protesting artists should get underway between all the stakeholders involved. The portfolio committee to keep a watchful eye on the developments.

 

  1. There needs to be a speedy process towards the implementation of the White paper on Arts and Culture by the executive.

 

  1. The Portfolio Committee to receive legal advice on the matter of contracting at the NAC as to whether the entity does have a right to amend the contractual obligations signed with the affected artists.

 

  1. Legal advice is needed on the matter of conflict of interest pertaining to the five Council members who are associated with companies or organizations that have received PESP funding.

 

  1. National Film and Video Foundation

 

  1. Introduction

 

The NFVF, which has been operating since 2001, is governed by the National Film and Video Foundation Act (No. 73 of 1997) and the Cultural Laws Amendment Act (No. 36 of 2001). It is mandated to develop and promote the film and video industry in South Africa through the programmes it funds. It also carries out other enabling activities such as providing training to industry players, supporting and developing historically disadvantaged people in the audio-visual industry in line with South Africa’s transformation agenda, increasing the number of people trained in scarce skills, and creating job opportunities in the film and video industry.

 

 

  1. Presentation by NFVF

 

  • The NFVF was given the responsibility of administering the PESP for the audio-visual sector with a budget of R140 million transferred to the entity.

 

  • Of the allocated budget, 5% (or R7 million) was reserved for costs of administering the project; R100 million for Streams 1-3 (objective one of employment creation); while R40 million was reserved for Stream 4 (objective two of job retention or business recovery).

 

  • After an extensive terms of reference design process, the NFVF obtained approval from the DSAC for the PESP to be administered in accordance with the following streams:

 

  • Stream 1: Production,
  • Stream 2: Training and Skills Development,
  • Stream 3: Industry Support (Distribution),
  • Stream 4: Business Recovery.

 

  • DSAC signed MOA’s with all implementing agencies and agreed on the Conceptual Framework and process maps to be utilized in the implementation of the PESP.

 

  • The NFVF also embarked on roadshows between 04 and 08 December 2020 when it was clear that applications were slow to getoff the mark in the following six Provinces: Eastern Cape, Free State, Limpopo, Mpumalanga, Northern Cape and, North West

 

  • All three adjudicated job creation approved streams created a total of 8302 jobs against a target of 5000 jobs.

 

  • Stream 4 managed to retain 675 jobs against a target of 3000 jobs – and this was due to the number of applications received for this particular stream.

 

  • In total the NFVF was tasked to create and retain 8000 jobs and this is an over achievement of 977 jobs.

 

  • This was against a total budget of R133 million for all streams.

 

  • What remains of the administration funds will be utilised in the coming months for Monitoring and Evaluation.

 

  • All successful applicants were announced on the NFVF website per stream.

 

  • Feedback letters were sent to unsuccessful applicants.

 

  • NFVF team and consultants are currently processing payments/disbursements with a projected time frame of end of June.

 

  • April to June 2021 will serve as a “monitoring” period.

 

  • A letter requesting approval to retain the funds that have not and will not be completely disbursed by 31 March 2021 has been sent to the Department.This approval will enable the NFVF to retain the approved and allocated funds to disburse until 30 June 2021.

 

  • All unsuccessful applicants have been afforded the opportunity to receive extensive notes from the panels upon request.

 

  • In the event that they remain dissatisfied with the decision made, they have right of appeal to the Minister directly as outlined in section 12 of the NFVF Act.

 

  • DSAC did not make allowance for an appeals process and as things currently stand, there is no budget in the R140 million for an appeals process.

 

  1. Observations

 

  1. PESP Distribution

 

  • The Members of the Committee were satisfied with the way the NFVF has distributed the PESP funds and believed that other entities could learn from the methods used by NFVF.

 

  • There were few concerns as to whether Council members had declared that they also received funding assistance from the PESP and whether there was no conflict of interest.

 

  • The NFVF also indicated to the committee that one of the challenges was that the entity had funding constraints as there were too many applications, yet too little funds.

 

  1. Recommendations

 

  1. The NFVF should maintain their recordof good governance, especially with regards to the handling of projects such as the PESP.

 

  1. Members of the Council who may have benefited from the PESP funds should declare that there was no conflict of interest.

 

 

  1. Overall Member’s concerns

 

  • The managers at the NAC presented themselves on an acting capacity which is a hindrance to the leadership.

 

  • There is broken trust between the council and the creative industry.

 

  • The concerns of the aggrieved artists who have not benefited from the PESP were noted.

 

  • The department has failed to manage the matters relating to conflict of interest. The NFVF is dealing differently with matters of conflict of interest than NAC. It was felt that the department should have intervened early on the matter.

 

  • There was poor handling of the disbursements of payments of the PESP funds as it pertains to the NAC.

 

  • There was also concerns relating to matters of transparency in terms of the distribution of the relief funds.

 

  • The issue of the contracts is at the heart of the conflict. The beneficiaries are not being paid equally.

 

  • The entities were not equipped with the capacity to distribute large amount of funds in a short period of time.

 

  • The Department showed poor oversight and control over the previous board of NAC in relation to PESP Funding.

 

  • There is excessive expenditure on court cases and forensic investigations which are not budgeted for.

 

  • The Committee noted with appreciation the good work done by the NFVF which regards to the distribution of relief funds and hope that the other entities can benchmark from them.

 

  • The matter of Council members serving different councils in the same sector needs to be addressed and the policy on that should be amended.

 

  • Disbursement of payments need to be expedited as soon as possible.

 

  • More transparent communication must be implemented by the NAC.

 

  • Unilateral amending of a contract without the other party’s consent is unlawful.

 

  • The Committee applauded the artists for conducting their protest peacefully.

 

 

  1. Site visit to the ODI stadium

 

  1. Observations

 

  • The members showed concern over the fact that the historical stadium had turned into a white elephant.

 

  • Lack of maintenance and vandalism had left the stadium in a bad state, with the grandstands also falling apart.

 

  • In 2005 it was shut down for non-compliance with safety and construction regulations. Seating requirements were deemed not up to basic standards.

 

  • The residents of Mabopane have expressed their concerns about the dilapidated stadium that has become a haven for criminals and drug users.

 

  • The management of the City of Tshwane indicated that the stadium was handed over to them by the North West Province during demarcation, and there was no budget to maintain the stadium.

 

  • The City indicated that after numerous consultations with the community, it was resolved that the stadium would be demolished and replaced with a multipurpose sport center.

 

  • The MMC for Sport and Recreation was concerned that she received a late notification that the committee would be doing oversight visit to the facilities, which hindered proper consultation process on the future plans of the municipality and the provincial Department of Sport, Arts and Culture.

 

  1. Recommendations

 

  1. The DSAC and the municipality should submit a report to the portfolio committee indicating the future plans of the ODI stadium.

 

 

  1. Site Visit to HM Pitjie Stadium

 

  1. Observations

 

  • The stadium renovated in 2005 in preparations for the 2010 FIFA World Cup and would serve was a training facility during the tournament.

 

  • There was also a dispute with the contractors and a cancellation because of a flawed design in the roof.

 

  • The stadium remains closed and unused till today even though it was supposed to have been part of the 2010 World Cup Legacy project.

 

  • It remains non-compliant because of safety and construction regulations not being met, and the occupational certificate has not been issued.

 

  • The angle of the seatingis said to be dangerous and the pitch visibility is poor in some areas.

 

  • The local residents have shown concern about the stadiums negative impact on the community.

 

  • The Gauteng Department of Sport, Arts and Culture, working together with the Department of infrastructure development had previously committed to the first phase of rebuilding the stadium‚ which was demolition.

 

 

  1. Recommendations

 

  1. The National DSAC, Gauteng DSAC, City of Tshwane Management led by the MMC for Sport and Recreation, as well as Community leaders to brief the committee with regards to the plans of reviving the HM Pitjie Stadium.

 

  1. The municipality to submit a full report on the history of the stadium and their future plans of rebuilding the stadium to the Portfolio Committee.

 

 

Report to be considered.

 

 

 

 

 

 

Documents

No related documents