JOHANNESBURG – Millions of rands allocated to support artists, athletes, and other individuals under the Department of Sport, Arts and Culture (DSAC) during the Covid-19 pandemic remain unaccounted for, raising serious questions about transparency and accountability.
In March 2020, the then Minister of Sport, Arts and Culture, Nathi Mthethwa, initially committed R150 million in relief funding for artists, athletes, and technical personnel impacted by event cancellations due to Covid-19 lockdown restrictions. This commitment was later increased during the 2020 Special Adjustment Budget, with a total of R250 million allocated for Covid-19 relief.
The reasoning behind this allocation was that these individuals were significantly affected by the ban on mass gatherings and in-person contact activities, leading to a substantial loss of income. According to DSAC's 2020/21 annual report, R177 million of this amount was earmarked for the national Department, R58 million for provinces' relief funding, and R10 million for libraries' health and safety protocols. The remaining R5 million was used for the acquisition of personal protective equipment (PPE) and decontamination services for the five DSAC sites/buildings. In total, R235 million (R177 million for national and R58 million for provinces) was directly intended for providing relief funding to the sporting sector and artists.
"The announcement by the Minister of the disaster relief fund for the sporting sector and artists had a major impact on the Department, as a significant amount of the planned budget was reprioritised for the disaster fund," DSAC stated.
To disburse the funds, four agencies were appointed: the Sports Trust, National Arts Council, Business and Arts South Africa, and the National Film and Video Foundation. While thousands of individuals did receive some level of support, the process was plagued by allegations of maladministration, double-dipping, and other irregularities.
When Gayton McKenzie assumed the role of Sport, Arts and Culture Minister in July 2024, he pledged complete transparency by publishing a detailed list of beneficiaries from his department's Covid-19 relief fund. This decision was made in response to scrutiny from the parliamentary committee and widespread outcry from the arts and culture industry. Although some members felt the approach was ill-considered, the DSAC clarified that the intention was not to discredit artists but rather to ensure accountability.
In July 2024, the beneficiaries and the amounts transferred were published, revealing that payments were made in three "waves":
- First Wave: R72.04 million for 3,962 beneficiaries
- Second Wave: R4.11 million for 622 beneficiaries
- Third Wave: R12.71 million for 2,059 beneficiaries
This brings the total reported payouts to just under R89 million for 6,643 beneficiaries – a figure significantly short of the original R177 million allocated for payments and the later-revised R235 million pool.
Speaking to BusinessTech, Joseph McGluwa, chairperson of Parliament's Portfolio Committee on Sport, Arts and Culture, stated that many questions remain unanswered. "Despite the department’s assurance that accounting for funds was within the rules, the committee has not been provided with figures or information on potential shortfalls, leaving questions about fairness and equality unanswered," said McGluwa.
Further complicating the matter, the Auditor General of South Africa's (AGSA's) audit report on Covid-19 expenditure revealed several issues with the rollout of the relief funds. The AGSA noted that "the fund relief framework had certain internal control deficiencies that could negatively affect the overall effectiveness of the department's relief efforts." This "could result in the department not achieving the intended objective of providing relief funding to deserving beneficiaries in the sport, arts and culture sector."
According to the AGSA, the progress of distributing the funds was slow, with a large number of applications initially being rejected and now being re-evaluated. The audit also identified that the original criteria used to evaluate applications were not specific enough to prevent double dipping, and subsequent amendments to these criteria could have resulted in an unfair process.
Furthermore, design deficiencies in the system used to capture applications resulted in duplicate payments being made to 72 beneficiaries, and applications were processed with key information missing. Inadequate validations by the system and a lack of reconciliations further increased the likelihood of invalid or inaccurate disbursements, the AG noted.
The AG also pointed out that the Department did not differentiate between the management fee payable to the disbursing agents and the transfer amount to disbursing agents for relief beneficiaries, which resulted in a misclassification of the management fees.
McGluwa stated that, given the concerns raised—including his engagements with South African Performing Arts representatives who only received calls during COVID for support, but nothing further—a "thorough investigation is necessary." He added that the committee should consider investigating consequence management, especially as they approach the Budget Review and Recommendations Report period.
As questions mount and the discrepancies remain unresolved, the pressure is on for DSAC to provide a full and transparent account of how the Covid-19 relief funds were managed and disbursed. The future of accountability and support for South Africa's arts and sports sectors hangs in the balance.
DSAC did not respond to queries from BusinessTech by the time of publication. Comments will be added if received.
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