Parliament was told on Thursday that the former acting CEO of the National Film and Video Foundation (NFVF) used a work credit card to buy booze.

However, only three of the foundation’s board members showed up to account for it.

This angered members of the portfolio committee on sport, arts and culture, including its chairperson, who said the no-show of nine members was unacceptable.

They said they were also shocked over the so-called misuse of the credit card.

The NFVF appeared before the committee to present its annual performance plan and discuss the many challenges it faces.

It is accused of inappropriately appointing council members without proper consultation and allocating funds to those with internal connections.

These issues have led to calls for a full audit of the NFVF.

Minister Gayton McKenzie, who was present for the first half of the six-hour meeting, said he was upset with the board members’ poor attendance.

“I just think it’s very unfortunate that I, as a minister, can make myself available,” he said.

“I wasn’t available today but I made sure to write to the chair and inform him that I would be available for the first half of the meeting.

“The board members cannot simply decide they’re not available. It puts us in a very bad light. We shouldn’t do that.”

NFVF deputy chair Mthokozisi Radebe said he misunderstood the invitation to attend.

He said they were cash-strapped and had a budget of only R160m, of which R120m is allocated to core work, including training.

This leaves R40m, with R37m going to employee costs and almost R3m to office accommodation.

When chair Joe McGluwa pressed for details about the credit card purchase of alcohol, NFVF CFO Peter Makaneta said the Auditor-General had flagged approximately R4,500 spent via the work Mastercard on alcoholic beverages.

“There was about R4,500 that was flagged as money used via the credit card to purchase alcoholic beverages,” he said.

The former acting CEO was not named. 

“What we have done — and what we are dealing with — is based on the AG’s recommendation that we recover that money.

“We have since withheld the R4,500 from the funds that were due to the former acting CEO.”

Makaneta also said the foundation suffered a burglary in which laptops were stolen.

“Our assessment is that there have been security breaches,” he said.

“Managing security and cameras falls within the landlord’s mandate.

“The fact that this break-in took place means there have indeed been security breaches.”

He said after the incident, without mentioning when it took place, they beefed up the security.

“We were fortunate that the laptops were insured, and we were able to claim back the R240,000 that was lost,” Makaneta said.

“However, it was recovered.”

Makaneta also revealed that the NFVF’s office rental bill is a hefty R2.9m per annum.

He said they were actively seeking to reduce this cost.

“We have engaged the landlord to review the rent, and we have also conducted our own market analysis, looking around the Houghton part-town precinct for cheaper options.

“In fact, we engaged the department — we had a CFO forum yesterday [Wednesday] where we raised this matter.

“We will engage the public works department to start a process to identify cheaper premises.

“Currently, we are paying about R170 per square metre, and we want to reduce that to about R120 per square metre to lower our office rental costs.”

The committee also raised allegations of bullying within the NFVF, with one claim that an applicant sent 17 funding requests which were rejected without explanation.

The panel responded that they regularly receive complaints from applicants about repeated unsuccessful applications.

McKenzie also faced criticism over allegations that he “handpicked” board members.

Committee member Eugene Mthethwa said McKenzie was “galvanising” the sector for his own political power.

“You are deliberately destabilising the entities under your department for your own purpose,” he said.

“The National Arts Council has someone on suspension for 21 months. It is the same in all entities under your department.

“What you have done is not honest; you always quote the Bible when speaking in public; be honest and do the right things. Allow the public to comment on names of people you put to serve on boards.”

McKenzie denied the allegation.

He said there was no legislative provision that requires him to put out names of the people appointed to serve on boards.

“You do not have questions, but insults,” McKenzie said.

“There is no act that says I must open up names to the public. You come here to insult me and my religion as well as my political party.”

He said committee members should note the different legislative requirements that apply to acting executives and those that were appointed permanently.

He also said it was pure coincidence that individuals are serving on more than one board.

“This is not against the law,” he said.

IOL News

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