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To: Julie Diphofa , Interim CEO of The National Arts Council

Calling for the National Arts Council to answer for mismanagement of the PESP funds

After weeks of creatives staging a sit-in at the National Arts Council Johannesburg offices, demanding answers about the R300 million stimulus package, the Department of Sports, Arts and Culture has taken action. Nathi Mthethwa, Minister of Sports, Arts and Culture, announced on Monday, the 29th of March 2021, that a forensic investigation will look into the mismanagement of the stimulus package.

https://www.dailymaverick.co.za/article/2021-03-29-mthethwa-promises-heads-will-roll-for-r300-million-arts-stimulus-mismanagement/

*Campaign Update* On the 28th of May 2022, the Citizen reported that Parliament’s Portfolio Committee on Sports, Arts and Culture was shocked to hear how the National Arts Council handled disciplinary hearings into the missing funds. It emerged that two more senior managers who faced disciplinary hearings resigned and left NAC, and the hearings were subsequently withdrawn.

“This person [Mangope] is free to go and can go work in another department or entity, and there’s no record of any wrongdoing. Maybe the Minister and department would have intervened because corruption took place.” -DA MP Dennis Joseph. 
https://www.citizen.co.za/news/south-africa/politics/mps-blast-nac-disciplinary-hearings-27-may-2022/

The National Arts Council of South Africa needs to answer for how the Presidential Employment Stimulus Package (PESP) has been distributed in order to justify their appeal to sector to reduce the initially promised amounts. 

There is currently a sit in at the National Arts Council offices in Newtown (as well as across the country) and artists have not left the premises since 3 March seeking answers. They have largely been unacknowledged and key questions have not been satisfactorily answered. We appeal to the National Arts Council and the Department of Sports Arts and Culture for transparency and evidence so that we can understand how the current situation happened and verify the legitimacy of the claim that they "oversubscribed" the initial R 300million.

Irrefutable proof needs to be given that the PESP funding has not been misused, and high level government intervention needs to happen to expedite the investigations.

Why is this important?

It is important for an online petition to support the ongoing daily protests and sit in, as more attention needs to be given to this matter so that government can respond. 

It is essential because the longer a response is delayed, the longer it will take to distribute the funds to artists that are in dire need of the funds to support basic living expenses. Many live performers are not able to work at all due to Covid-19 restrictions and need the funding to survive. 

It is important that we can see that the PESP grant from treasury has legitimately been distributed to artists and that artists will be the key beneficiaries of the newly proposed structure. The artists under Im4theArts are calling for a published list of all PESP beneficiaries and the amounts granted to each in order to verify council's claims and justify why artists have been asked to reduce their initial contracted subsidies. 

It is important that this issue is highlighted and that the way in which council has handled the PESP and treated artists in the process is brought to the light of the general public. The issue needs to be escalated because artists are starving while the allocated funds are being held by the NAC until artists commit to lesser contracts. 

High level attention and action need to be brought to this matter. Soon.

Updates

2024-06-13 10:22:20 +0200

Petition is successful with 603 signatures

2024-06-12 13:34:00 +0200

On November 14, 2021, the National Arts Council announced that it had charged its suspended CEO and CFO with financial mismanagement regarding funding for artists and creatives. Read more here: https://www.news24.com/news24/southafrica/news/covid-19-nac-ceo-cfo-charged-over-disbursement-of-r300m-to-struggling-artists-during-pandemic-20211114.

On 1 October 2021, the Supreme Court of Appeal dismissed the application for leave to appeal the South Gauteng High Court judgement ordering the National Arts Council (NAC) to pay over the balance of funds. On the 20th of Oct 2021, the National Arts Festival (NAF), representing artists and the National Arts Council (NAC) reached an agreement on the payment terms for the outstanding funds and costs in their legal dispute, ending the contestation. Read more here: https://www.news24.com/life/arts-and-entertainment/arts/nac-fulfills-grant-payment-to-the-national-arts-festival-20211020

2021-03-26 04:38:40 +0200

500 signatures reached

2021-03-22 12:25:30 +0200

100 signatures reached

2021-03-22 10:38:27 +0200

50 signatures reached

2021-03-22 09:55:01 +0200

25 signatures reached

2021-03-22 09:30:07 +0200

10 signatures reached