Power Play in Government ⚡🚫: Gayton McKenzie Banishes Samic for Defaulting on Duty

In a stunning move, Gayton McKenzie has taken drastic action against Samic, issuing a ban after the company was accused of failing to meet its obligations. The decision has sent shockwaves through the government sector, with many questioning the implications for both Samic and the broader industry. McKenzie’s firm stance highlights his commitment to holding companies accountable, but it also raises concerns about the potential fallout for others who might find themselves in similar situations. As the drama unfolds, all eyes are on McKenzie’s next move and the future of Samic’s operations.

Gayton McKenzie’s department banishes Samic for ‘defaulting’

The South African Music Industry Council (Samic) has been banished by the Department of Sport, Arts, and Culture after it continuously failed to submit a report to the department.

In a letter dated April 30, the department informed the chairperson of the sport, arts, and culture portfolio committee, Joe McGluwa, that Samic had been listed as one of the defaulters.

Sunday World has seen the letter, which reads in part: “Kindly be informed that Samic has failed to submit the required report despite numerous reminders from our office. Consequently, Samic has been listed as one of the defaulters in our records.”

An insider told Sunday World that Samic received more than R1-million from the department.

“The money was received in tranches in 2021, and it was meant for an elective conference,” a Samic member, who chose to remain anonymous, told Sunday World.

“The conference did take place at the Birchwood Hotel [in Boksburg, east of Johannesburg]. However, the funds were also stolen by Samic members, which is why they couldn’t account for them to the department.”

Memorandum of agreement

Sunday World has also seen a memorandum of agreement between the department and the Samic detailing how funds were paid into the council’s bank account.

The memorandum of agreement reads in part: “The department hereby agrees to provide financial support to the beneficiary in the sum of R602 000 during the current financial year, which allocation shall be paid into the beneficiary’s account as per the directive of the duly authorised signatory stated in this agreement.

“A project management/administration fee, being a maximum of 10%, may be levied on the total allocation. R541 800 on receipt of the signed memorandum of agreement, which must be signed by both parties for it to be valid.

“R60 200 on receipt of a signed narrative and expenditure report supported by the relevant invoices and receipts, advising on the utilisation of the first tranche by 15 May 2021.”

Previously, Sunday World reported that the Department of Trade and Industry (DTI) terminated its relationship with Samic after it failed to account for R500 000.

It was further reported that Samic no longer exists, as it was deregistered due to non-compliance.

Ex-Samic boss distances himself

Former Samic president Eugene Mthethwa, who was unceremoniously removed from the council, said he was no longer in charge when the funding was paid out.

“I can confirm that the monies were paid to Samic, but I was already out of the organisation. Nonetheless, I reported this to the former DTI minister, Ebrahim Patel, but nothing was done,” Mthethwa said at the time.

“So, all these questions must be directed to Romeo Qetsemani; he was the engine behind Samic.”

Current Samic president Vusi Leeuw also referred questions to Qetsemani. “Qetsemani will be able to answer you,” said Leeuw.