Dear Editor
The national Department of Arts and Culture has, yet again, failed to oversee the spending of relief funds allocated by the Presidential Employment Stimulus Programme (PESP). In September, my letter to the Director General of the Arts and Culture department requesting details of the mismanagement of a R300 million PESP went unanswered. Most recently, National Government’s negligence has resulted in the National Arts Council overspending by almost R200 million.
Organisations in the Western Cape rely on this stream of funding to support arts organisations and individual artists. Mismanagement of this lifeline only stands to worsen insecure living conditions for those who desperately need it.
I have now written to Minister Nathi Mthethwa to ascertain why the national Department has botched the distribution of PESP relief funds yet again. I have asked who is responsible for overseeing PESP spending by government entities and what disciplinary actions they will be facing. I understand that the Chief Executive Officer and the Chief Financial Officer of the NAC have been charged, but the mismanagement of PESP funding will not stop until Minister Mthethwa is held to account.
The Mazars Forensic Report on the matter has revealed that financial mismanagement, process irregularities, and a lack of adequate oversight has led to the agency spending almost double its budget of R285 million, resulting in “an over-commitment of R428,0733,778.”
Some of the findings included a conflict of interest in respect of former council members participating in the PESP processes while directing companies that applied for PESP funding, irregular expenditure after paying these members, and a failure to take steps to prevent irregularities in the adjudication process.
The National Department cannot continue to sit idly by and watch their own entities mismanage hundreds of millions of rands intended to support the struggling Arts industry that was effectively punished by many irrational lockdown measures in the first place.
The DA practices clean, transparent, and efficient governance. We will continue to hold national government accountable as the artists of the Western Cape deserve reliable support during a time when they need it most.
Regards
Reagen Allen, MPP
DA WC Spokesperson for Cultural Affairs and Sport
