NAC members in hot water as Covid stimulus package investigation reveals instances of misconduct

An independent forensic report found that five National Arts Council (NAC) members violated the National Council Act by “enmeshing themselves in operations” and adjudicating applications for the Presidential Employment Stimulus Package (Pesp), said Nathi Mthethwa, the Minister of Sports, Arts and Culture at Monday’s press briefing. 

Mthethwa declined to name the five members but said that two of the accused were still part of the NAC’s 18-member council. “I’ve written to the [two Council members] and I’ve given them a week to state their side of the story,” said Mthethwa. 

Mthethwa then clarified that the problem lay with the conduct of five council members, who were compensated for adjudicating applications.  Mthethwa said no fraud was committed. 

In October, the NAC was allocated R300-million to disburse to the creative sector to retain and create jobs. 

R15-million, or 5% of the stimulus package, went to the NAC as an administration fee. 

In a March Zoom meeting, the NAC council told members of the arts sector that the previous council had given too much money to 613 beneficiaries. This meant that there wasn’t any money for about 700 additional beneficiaries. 

The NAC then reneged on the initial 613 contracts to ensure that all the beneficiaries could receive funding. 

Prior to that announcement, the NAC council had suspended its CEO, Rosemary Mangope and Clifton Changfoot, its chief financial officer, pending an investigation into the Pesp.

Shortly after this, the creative sector staged a sit-in at the NAC offices, in Newtown, Johannesburg, demanding transparency regarding how the stimulus package was being handled. 

The forensic investigation, which started in July, was conducted by Mazars Forensics. 

The investigation took 12 weeks and was shared with Mthethwa earlier this month, said Princess Celenhle Dlamini, the chairperson of the NAC’s council. 

“Results of the investigation point out to wrongful doing, maladministration and mismanagement in the process of implementing the Pesp. The report further clearly identifies the individuals responsible and who are to be held accountable,” said Dlamini.

Neither Dlamini nor Mthethwa disclosed the names of the individuals involved.

Investigators found administrative failures on the NAC’s part which included:

• Failure to adequately resource the Pesp project with competent staff;


• A lack of adequate oversight and review processes resulting in non-compliant projects being approved;


• Failure to meet the timelines for the delivery of the Pesp;


• Failure to manage and monitor the process such that accurate information in respect of approved applications were correctly captured in the grant management system.

• Non-compliance with section 57(c) of the PFMA, in respect to ensuring adherence to the system of internal control and financial management;


• Failure to ensure that a system of internal control was carried out;


• Conflict of interest in respect of some former Council members who contravened Section 8(5) of the NAC Act.