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Lottery Withholds Millions from Traditional Music Event Amid Corruption Probe

Published November 26, 2024
2 months ago

The National Lotteries Commission (NLC) has recently taken a firm stand by withholding a previously approved grant of R1.2 million intended for the South African Traditional Music Awards (SATMA). This move comes amidst sweeping concerns regarding the proper allocation and utilization of funds. Held annually, the SATMA has been a significant cultural event since 2006, celebrating the richness of South African heritage through music.





From 2019 to 2022, the NLC had disbursed almost R16.4 million in multiple grants to the Mageza Heritage Foundation, the chief organizer behind SATMA. However, following an internal investigation spurred by reports of potential misuses of these funds, the latest installment slated for 2023 was abruptly halted.


The NLC’s action aligns with its broader mission to cleanse itself from the stains of corruption unveiled in past investigations by the news outlet GroundUp. These investigations led to a turnover in the NLC board and management in 2022, propelling a renewed commitment to accountability.


Investigations by the NLC pointed fingers not just at the fund's administration in 2023 but also scrutinized transactions in previous years. Particularly troubling was a payment exceeding R718,000 to G4 Brothers, a firm connected to Dumisani Goba, SATMA's founder. Goba, in his defense, described the payments as legitimate fees for services including event management and production.


Amid these controversies, the Special Investigating Unit (SIU) has been roped in to thoroughly examine these transactions and allegations of "double dipping," a scenario where SATMA might have received overlapping funds from multiple sources in the same financial year. The scrutiny extends to payments made during the pandemic, involving considerable funds from both the NLC and entities like the Mpumalanga Department of Culture, Sports, and Recreation (MDCSR), which contributed over R41 million over three years and other sponsors like the National Heritage Council and SABC Mobile.


The spotlight on this funding fiasco intensified when the Mpumalanga government, having secured hosting rights for SATMA from 2021 to 2023, proclaimed the event a major economic boon. They highlighted its potential to boost provincial revenues and foster social cohesion. Despite these lofty proclamations, the detailed budget allocation reported by Mageza raised eyebrows. Out of a total R1.2 million budgeted for 2023 by Mageza, half was allocated not to the event's direct costs but rather to personnel salaries, stipends, and travel expenses.


The delayed funds have left Mageza in a precarious position, urgently needing to compensate service providers for an event held on December 15 at the Durban International Convention Centre. Representatives from Mageza remained tight-lipped, citing ongoing investigations by the SIU and directives from the NLC as reasons for withholding detailed comments.


As this situation unfolds, it starkly highlights the challenges and responsibilities that come with managing public funds, especially in sectors as dynamic and culturally significant as the arts. Transparency in funding, along with strong oversight mechanisms, remains crucial in ensuring that grants and public monies serve their intended purposes, fostering cultural enrichment rather than breeding grounds for fiscal discrepancies.


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