DEPARTMENT OF ARTS AND CULTURE 12 SEPTEMBER 2017 9/2/2016 PRESENTATION TO THE PORTFOLIO COMMITTEE ON ARTS AN CULTURE South African Roadies Association SARA 12 SEPTEMBER 2017

BACKGROUND The presentation is a response to the letter dated 22nd August 2017 from the Portfolio Committee inviting the Minister and the Director General to brief the committee on the matters listed below. The letter is enclosed as ANNEXURE A. Briefing by the DAC on the Public Protector recommendations on the SARA matter. 2

Tabling and consideration of the South African Roadies Association complaint to the PC on Arts and Culture On the 26th May 2017 the Department of Arts and Culture received correspondence from the office of the Honourable Chairperson of the Portfolio Committee on Arts and Culture. A copy of the letter is enclosed as ANNEXURE B. The correspondence indicated that the Portfolio Committee received a complaint filed by the South African Roadies Association (SARA) claiming that Officials from the Department of Arts and Culture presented “False and Dishonest statements to the Portfolio Committee on Arts and Culture”. A copy of the complaint letter from SARA, dated 11 May 2017 is enclosed as ANNEXURE C. 3

Tabling and consideration of the South African Roadies Association complaint to the PC on Arts and Culture The Portfolio Committee requested the Department of Arts and Culture to provide a response to the committee on the allegations raised by the South African Roadies Association (SARA). The Department submitted a response to the Portfolio Committee. See enclosed as ANNEXURE D, a letter from the Ministry of Arts and Culture dated 13 June 2017. The response is voluminous to outline on the presentation, in this regard refer to annexure D page 3 to 9. 4

Briefing by the DAC on the Public Protectors recommendations on SARA matter Introduction The report from the Public Protector dated 19/06/2017 refers, enclosed as ANNEXURE E. The report is titled “REPORT ON AN INVESTIGATION ON AN ALLEGED FAILURE OR UNDUE DELAY BY THE DEPARTMENT OF ARTS AND CULTURE TO IMPLEMENT THE SETTLEMENT AGREEMENT SIGNED IN TERMS OF SECTION 6(4) (a) and (b) OF THE PUBLIC PROETCTOR ACT 23 OF 1994.” The report emanates from a complaint raised by the South African Roadies Association (SARA) to the Public Protector alleging that the Department of Arts and Culture (DAC) failed or unduly delayed to implement the Settlement Agreement signed between the DAC and SARA in terms of section 7 (4) (a) and (b) of the Public Protector Act 23 on the 01st April 2014. A copy of the Settlement Agreement is attached as ANNEXURE F. 5

Briefing by the DAC on the Public Protectors recommendations on SARA matter Public Protector Investigations: Upon receipt of the complaint from SARA the Public Protector conducted an investigation and concluded a report outlining a number of findings and remedial actions to be taken. For the issues that were identified through the investigation and the findings thereof. Refer to Annexure E, pages 6 to 11 of the Public Protector Report. Further to the findings the Public Protector issued remedial actions for the Department to undertake. 6

Remedial Actions With regard to the Renovations of SARA House: 7 The Director-General of Department of Arts and Culture The DAC must provide funding for the renovation of SARA House to the amount of R15 000 000.00. The grant amount of R15 000 000.00, as allocated to SARA for renovation is a huge amount which cannot be transferred to a private entity, considering that SARA does not have capacity to implement a renovation of this magnitude. In order to ensure that Public funds are spent appropriately and for the purpose it is intended for, DAC must appoint the Development Bank of Southern Africa (DBSA), as a Government infrastructure implementing agent, to implement and manage the renovation at SARA house. The funding of R15 000 000.00 allocated by DAC for renovations of SARA House must be paid directly to the Development Bank of Southern Africa (DBSA) within thirty (30) days of signing of the implementation agreement between DAC and DBSA. Development Bank of Southern Africa must be paid 10% of the grant amount by DAC, being a management fees for management of the renovations at SARA House. 7

Remedial Actions cont. With regard to the funding of operational administrative costs of SARA: The Minister of Department of Arts and Culture (DAC) The Minister must amend the White Paper on Arts , Culture and Heritage of 1996, within three (3) months of this report to ensure that SARA is not unfairly discriminated against when it comes to the allocation of operational and administrative costs ii) DAC must further ensure that within three (3) months of receipt of this report, a written policy informing this type of funding is developed for future and put in place to align the criteria that should be followed in this funding model. The Public Protector issues this remedial action against the backdrop of inconsistencies in DAC’s approach towards funding of administrative and operational costs. This should help this funding model to be more coherent and consistent in its approach 8

THE DAC’s ACTIONS/ RESPONSES TO THE PPSA REMEDIAL ACTION DAC conclusion on the PPSA’s Recommended Remedial Action(s): The Department of Arts and Culture studied and discussed the report and decision to review the report was taken. The Public Protector was duly informed of the DAC’s decision. See response attached as ANNEXURE G. The review process is ongoing. 9

SUBSEQUENT EVENTS: The DAC further received enquiries from the PP-SA in a letter dated 17 July 2017 (Refer to ANNEXURE H); in which the PPSA stated that it is conducting a further investigation into the complaints/allegations received from SARA titled: “INVESTIGATION INTO ALLEGATIONS OF UNDUE DELAY OR FAILURE TO RESPOND AND ADDRESS THE CONCERNS RAISED BY THE SOUTH AFRICAN ROADIES ASSOCIATION’S (SARA) COMMUNICATION AND THE CONCEALMENT OF THE REPORT BY THE DEPARTMENT OF ARTS AND CULTURE (DAC)”. The allegations were summarized as follows: Allegations of undue delay or failure to respond and address the concerns raised by SARA to the Department of Arts and Culture, in relation to SARA’s communication to the Department dated 11th August 2016, regarding Backstage Skills Academy. Allegations of undue delay or failure to respond to SARA challenging the Forensic Report produced by the Department of Arts and Culture and signed by the Minister, Mr. Nathi Mthethwa. Allegations of the Department’s Concealment of the Final Forensic Report by the Business Innovation Group (Pty) Ltd. The DAC submitted its response to the above to the PPSA on 18 August 2017; and is awaiting further engagements/an outcome. 10

DEPARTMENT OF ARTS AND CULTURE 9/2/2016 THANK YOU