PRESS RELEASE

ISSUED BY: National Lotteries Board (NLB)

CONTACT: Sershan Naidoo – NLB Spokesperson

TEL: 012-432 1303

EMAIL: sershan@nlb.org.za

DATE: 3 September 2008

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NATIONAL LOTTERIES BOARD’S RESPONSE TO THE MEMORANDUM FROM REPRESENTATIVES OF ART COMMUNITIES

The Board received a memorandum on 29 August 2008 from Representatives of Arts Communities. The Chairperson of the Board assured the representatives that an investigation into the concerns of the group would be investigated and that a response would be submitted by the close of business on Wednesday, 03 September 2008.

In its response, the Board noted the contents of the memorandum and assured the group that the Board will address any legitimate concerns.

Following its investigation into the disgruntled organisations, the Board can report on each of the organisations as follows:

Craft Association (#14807)

The Distributing Agency asked for audited financial statements for 12 organisations linked to this application. National Craft Association submitted audited financial statements for 10 of the 12 plus for 2 others that were not requested. The Distributing Agency at its meeting of 25-27 August 2008 concluded that the info submitted was insufficient. Further processing will take place on receipt of the outstanding information.

Vukani Community Theatre (#’s 11786, 16574, 11801, 11788)

Project Number 11786: An allocation of R1,088,000.00 in January 2004 to be paid in 9 payments over 3 years. R482,667.00 of the grant has been paid. On a Site Visit to Rasa Productions in Durban, many discrepancies were found in that there were missing invoices, cheque requisitions, deposit slips and cheques.

Project Number 11788: In December 2003 an amount of R856,838.00 was allocated for a tour of “Coolie Odyssey”. The amount was to be paid in 3 payments. An amount of R285,612.00 has thus far been paid. Coolie Odyssey was to be produced by Rasa Productions who just received R150,000.00 of the R285,612.00. Rasa Productions has since filed a civil claim against Vukani Community Theatre.

Project Number 16574: In May 2005, the organisation was allocated R2,710,294.00 to be paid in 10 payments over 3 years. R1,057,207.00 has thus far been paid in August 2005. Acknowledged receipt of fund in May 2006. Progress Report has not yet been submitted.

Project Number 11801: Allocated a grant in December 2003 an amount of R746,200.00 to be paid in 4 payments over 2 years. Three payments of R540,100.00 have been paid in July 2004, October 2004 and April 2005. On 9 July 2007, NLB requested a report on the previous payment. On 13 July 2007, the organisation submitted a report and requested to use funds from another grant for the Ingxubevange Dance Festival. This could not be acceded to because the other grant was subject to a dispute between Vukani and Rasa Productions.

Further payments to Vukani have not been made as a result of the issues detailed above. The NLB acknowledges that there might have been a deficiency with regards to communication with the applicant.

Soyikwa Institute for African Theatre (#15301)

The organisation was allocated a grant in September 2004. The Grant Agreement finalised in November 2004 and the first payment was released in March 2005. The Progress Report was received in November 2005. Further correspondence was sent to the beneficiary in November 2005 and April 2006 and the second payment was made in July 2006. Thus far, no further reports received therefore no further funds were released.

Victory Sonqoba Theatre (#17378)

This applicant initially submitted ‘audited’ financial statements by a firm whose credentials were questioned. The Distributing Agency refused to accept these financial statements and informed the applicant that the funds would be released once they were satisfied with the financial statements. The organisation has subsequently presented audited financial statements for 2006 that does not include a balance sheet. The Distributing Agency has decided that the funds will not be released until the 2003 and 2004 audited financial statements have been presented and found to be acceptable.

Abangani Theatre

The application was declined because the audited financial statements have not been presented in the format as laid down for audited financial statements. Further, the financial statements for each financial year should be presented separately. The organisation submitted financial statements which in fact covered a period of two years.

Hlanganani/Kopanang (#19236)

This application was made with Soyikwa Institute of African Theatre in August 2004. An allocation was made to the organisation in December 2004. The Grant Agreement was received in April 2005. First payment was made in June 2005 and a Progress Report was received in August 2007. In May 2008 additional information was requested from the organisation. This was received in August 2008 and was not satisfactory. The file will be processed further once the required information is submitted.

Vuyani Dance Theatre (#16385)

The organisation was allocated R1,2m in 2005 for New Works, Production Tour and Administrative costs. When the Progress Report was submitted to the Distributing Agency they found a deviation from the original allocation in that funds were spent on medical and tax expenses to the extent of over R80,000.00. The Distributing Agency ruled that the funds be returned and the outstanding amounts on the grant be withdrawn. When the legal department of the NLB reviewed the file, they found the expenses for tax purposes to be bona fide and sent a demand for the return of the R7,291.91. The amount has been returned and the organisation has been assured that it will not be prejudiced in any new application.

Craft Association (#21843)

This application has been declined because the previous application (#14807) has not yet been finalised. The Distributing Agency requires the requested audited financial statements.

South Africa Roadies Association (#29970)

This application was declined because the audited financial statements for two years (2005 and 2006) identified lack of controls over administration and the implementation of donations.

Mthakathi Theatre (#’s 30236 and 28027)

These applications have not yet adjudicated. The organisation will be duly informed once the process has been completed.

Dithero/MACA

The name, as presented by the representatives of arts communities, cannot be located on our Management System.

Magnificat (#15936)

The organisation was allocated R848,863.00 in December 2004. The Grant Agreement was received in April 2005 and the organisation was paid R509,317.00 in June 2005. The Progress Report was received in June 2006 and it was noted that the organisation had still to use R200,000.00 of the grant. In February 2008 a new Progress report was submitted. In June 2008 more information was submitted and it showed that the surplus in the 2005/2006 financials is R222,883.00 and the opening balance in the 2006/2007 financials shows R198,297.00 – a discrepancy of R24,586.00. Commissioning Costs was R10,800.00 but reflected as R111,660.00 in the expenditure reports. In the original budget, auditing costs were R5,000.00 but reflected as R8,094.00 in the progress report. The aforementioned discrepancies was brought to the attention of the organisation in August 2008. The organisation needs to explain this before any further payment is effected. The organisation advised on 2 September that outstanding information would be submitted by 5 September 2008.

The Board welcomes constructive criticism and assures the public that efforts are being made to improve service delivery, which would also require the cooperation of applicants.

More importantly, the Board wants to place on record its disapproval of the  manner in which the applicants involved in the 29 August 2008  trespassing of the Board’s office chose to air their grievances. The Board will not tolerate such behaviour and will have people engaging in such behaviour forcibly removed and charged with trespassing. 

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