1. CURRENT STATUS AT NAC, NLSA, PACOFS,NFVF,SAHRA &PANSALB
Director General: Department of Arts and Culture
4 December 2018

2. Contents Update on National Arts Council
Update on National Library of South Africa
Update on PACOFS
Update on National Film and Video Foundation
Update on South African Heritage Resources Agency
Update on PANSALB

3. NATIONAL ARTS COUNCIL 3

4. STATUS ON THE APPOINTMENT OF THE INTERIM CEO
ISSUE
PROGRESS
The interim CEO was appointed on the 25 September 2018 on a month-to-month basis by the Council of NAC. The interim CEO salary is the same as the current CEO who is on special leave. This arrangement has shocked the Minister and the Portfolio Committee.
A decision was taken to appoint the CEO of the State Theatre, Dr Mkhize as the Interim CEO of the NAC
Mr Mkiva will be relieved from the Interim CEO duties and will be reinstated as a Council Member
The Minister has written to both the Chairpersons of the State Theatre and the NAC requesting them to finalise the appointment of Dr Mkhize as the Interim CEO.
The Minister has also written a letter re-instating Mr Mkiva as a council member

5. DISCIPLINARY CASES ISSUE PROGRESS
The progress with the implementation of the forensic investigation of the Lalela Project and the CEO’s excess bonus payment
The CEO was placed on special leave.
The initial dates set for the CEO’s disciplinary hearing were 2/5/8 November Subsequent to the meeting held on 17 September with the Initiator, it was decided that due to the volume of the documentation received by the legal team representing the CEO, more time will be needed for preparation. It was then resolved that the dates will change to the 8th of November and the other two dates will be decided on the 8th of November It is anticipated that the case will be concluded in 2019.
The DG has since written to the Chairperson (letter sent on 25 October 2018) requesting that the process be finalised and a report be done for the Minister by 23 November 2018
The Chairperson has responded highlighting the importance of following due process so as not to compromise the case. He further said that he has impressed upon the initiator to endeavour to finalise the case before the end of the year

6. DISCIPLINARY CASES PROGRESS
ISSUE
PROGRESS
The excess payment of bonuses for the CFO and the Art Development Manager (ADM)
Gobodo Forensic Services was appointed to investigate the Lalela Project and the excess bonus payment of the CEO’s , CFO and the ADM’s bonus payment. The investigation has been completed, recommendations are being implemented.
A meeting between the NAC, DAC officials and the initiator was held on the 10th October 2018 at the Sandton Chambers. After lengthy deliberations regarding whether the DAC has jurisdiction or not, it was resolved that all the charges drafted against the CFO pertaining to allegations that happened at the NFVF be dropped, and the new charges against the CFO, which among others include non-disclosure, will be drafted, which is the only charge the NAC can possibly pursue against the CFO.
Following that meeting, the initiator requested documents in pursuance of the charges which are relevant to the NAC. A meeting was held on the 25th October 2018 with all the interview panel members who conducted the CFO’s interview at the NAC. Upon gathering of all relevant information, it is then that the initiator would be able to draft the charges and a notice of disciplinary hearing against the CFO.
A charge sheet was issued to the ADM on the 28th November 2018, and the next available date for the hearing is 24th – 25th January 2019

7. MINSTERIAL MEETING Corrected Minutes by NAC Council
ISSUE
PROGRESS
Corrected Minutes by NAC Council
A letter was written to the Chairperson of the Council to correct the version of minutes that were misrepresenting the views of the Minister on the renewal of the NAC CEO.
The Chairperson met with the Acting DG, Mr Ndima and DAC management on 5 November 2018 where it was agreed that the minutes will be revised to capture the true reflection of discussions.
Subsequently, the minutes were submitted to the Office of the Minister for consideration

8. NATIONAL LIBRARY OF SOUTH AFRICA

9. STATUS REPORT ON THE NLSA LEGAL MATTERS
ISSUE
RESPONSE
Mr M Matyumza: Director: Centre for Book
He was charged on 7 counts of misconduct, and a disciplinary hearing commenced from 20 June 2018 and was finalised on 7 August The ruling by the Chairperson, Advocate Adams, dated 24 August 2018, found Mr Matyumza guilty on 4 of the 7 charges and recommended a sanction of dismissal.
The recommendation from the Advocate was dismissal which was to be effected on 7 September On 11/12 October 2018, the CEO of NLSA learnt that an appeal process was held with an appeal ruling recommending a sanction of a final warning instead of a dismissal. The entity further discovered that the appeal was chaired by an HR Consultant and not an attorney or an advocate, and therefore his ruling lacked legal merit and reasoning.
The advice from the legal firm appointed by the entity is that the appeal process is therefore irregular and subject to an investigation.
According to the report from the CEO, the entity considered to afford Mr Matyumza another appeal hearing in compliance with the Act and Regulations, which he has rejected. Despite being told not to appear at work, he nevertheless came to the office on 22 October The CEO sought legal advise which recommended dismissal. Mr Matyumza was thus dismissed on 22 October 2018.

10. STATUS REPORT ON THE NLSA LEGAL MATTERS
ISSUE
RESPONSE
Mr M Matyumza: Director: Centre for Book
He was charged on 7 counts of misconduct, and disciplinary hearing commenced from 20 June 2018 and was finalised on 7 August The ruling by the Chairperson, Advocate Adams, dated 24 August 2018, found Mr Matyumza guilty on 4 of the 7 charges and recommended a sanction of dismissal.
On 23 October 2018, Mr Matyumza instructed his lawyers to demand that he be reinstated with immediate effect. On 25 October 2018, the lawyers representing the NLSA responded to Mr Matyumza’s lawyers withdrawing the letter of dismissal and stated that the NLSA will convene an appeal in compliance with the NLSA Act and Regulations and that Mr Matyumza will be informed of the date and time of the appeal.
He however refused to participate in the new appeal process and took the matter to the Labour Court. On the basis of the legal advice given to the NLSA, it was decided to let him come back to work rather than spend more money on litigation.
In the meantime the entity received new allegations of sexual harassment and victimization (which were not part of the initial case). On the basis of these allegations and advice from the DAC HR and Legal professionals, a decision was taken to serve Mr. Matyumza with a notice of intention to suspend him. We await an investigation into allegations levelled against Mr. Matyumza to commence.
Mr Mashudu Mavhungu:
precautionary Suspension
Position: Executive Director: Corporate Services
Mr Mavhungu was suspended on 19 October 2018.
Mr Mavhungu’s suspension is due to a pending investigation into the role he allegedly played in shielding Mr. Matyumza from a reported case of Sexual Harassment and his involvement in the appeal process. He also failed to involve the NLSA’s legal representative in the appeal process as required. This behaviour prejudiced the NLSA. An investigation into Mr. Mavhungu’s conduct is underway.

11. STATUS REPORT ON THE NLSA LEGAL MATTERS
ISSUE
RESPONSE
Dr Marumo: dismissed
Position: Bibliographic Services and Collection Management. Dr Marumo was charged for incompatibility, workplace bullying and harassment.
Dr Marumo’s disciplinary hearing commenced on 5 June 2017 and was concluded on 3 April She was found guilty on both charges. The recommendation was a sanction of dismissal. The matter was finalised however, she has referred the matter to the CCMA and the hearing will be held on 3 December 2018
Mr Brian Mabasa: Separation Agreement
Position: Director: Human Resources
Charges: Mr. Mabasa was charged with irregular appointments of staff and interns; Failure to conduct performance evaluations and delays in implementing disciplinary processes against Mr. Matyumza and Mr. Mulaudzi.
The NLSA’s legal team interviewed Mr Mabasa on the allegations levelled against him. A report was prepared on 25 May The report revealed that Mr Mabasa admitted to all the charges. Mr Mabasa entered into a separation agreement with NLSA on 31 May Mr Mabasa was paid his 2 month salary and the matter finalised.

12. STATUS REPORT ON THE NLSA LEGAL MATTERS
ISSUE
RESPONSE
The following were the issues that were raised by the NLSA staff through an anonymous correspondence sent to the DAC:
No staff meetings only five in five years
CEO using the company car to be picked up and dropped off at home; the car is not used for the operations of company, its always on standby for the sole use of CEO
Theft of projector, investigation hampered by the Executive Director of Corporate Services
Executive Director: Corporate Services has companies linked to him that have been awarded tenders by the NLSA; the Security Tender being just one example
Victimization of staff - Board Secretary accused by the CEO of leaking information
Interference by the Board Chairperson- who has been going daily to the office
The DAC received anonymous correspondence from the employees of the NLSA regarding misuse of resources and funds as well as the dismissal, suspension of the Directors at the NLSA. From the correspondences received, it became evident that there were challenges at the entity as a matter of intervention, the DG directed that the DAC officials visit the entity and get clarity on the issues and concerns raised. The meeting was held on 18 October 2018 at the NLSA in Pretoria. A detailed report generated from the meeting with the staff of the NLSA was presented to the Executive Management and the Union members on 28 November A follow-up with all the NLSA employees will be held by 14 December 2018.
The Board appointed an independent investigator and a report has been shared with the Minister for consideration

13. PACOFS

14. COLLUSION AT PACOFS ISSUE PROGRESS
Collusion by the CFO and SCM manager on scandalous operational matters
Irregular expenditure
Report on procurement of council members for gospel show
The DAC received correspondence from a member of the staff at PACOFS making serious allegations against the CFO and the SCM Manager relating to collusion in procuring tenders. A Ministerial letter has been sent informing the Chairperson of PACOFS of the correspondence and requesting the Chairperson to respond to the whistle blower
The Council has assigned Morar to investigate the allegations. The investigation addressed the CFO and SCM manager collusion and procurement of council members for the gospel show. The investigation has been finalised.
Allegations levelled against Portfolio Committee members who were seen using PACOFS’s car during the MACUFE Festival.
An allegation was made by one of the PACOFS employees that there were some Port folio Committee members who used the kombi that belonged to PACOFS during the festival and that the entity has CCTV footage to confirm this allegation. The PC demanded that the footage be brought to the PC. The DAC followed up with PACOFS on the matter. The response from PACOFS was that it is not possible for the entity to provide recordings that are older than three months as the system erases the oldest footage automatically to make space for new recordings.
A response from PACOFS is attached for ease of reference.

15. COLLUSION AT PACOFS Recording of the PC oversight meeting at PACOFS
ISSUE
PROGRESS
Recording of the PC oversight meeting at PACOFS
The Department does not have a recording of the said meeting
The Department only has recordings of its meetings and not the oversight visits to entities by PC
Appointment of the CEO
The recruitment and selection process to appoint the CEO commenced, however it was found to be flawed
Council took a decision to suspend the process until the investigation is concluded
In the interim, Council appointed Mr Xaba as the Acting CEO
At a meeting held with the entities in Cape Town on 29 November 2018, Minister issued a directive for the process to be restarted.

16. NATIONAL FILM AND VIDEO FOUNDATION

17. NFVF
ISSUE
RESPONSE
The Department received letters on 7 November 2018 forwarded by PC from SASFED and Independent Producers Organisation (IPO) on the following matters:
Breakdown of expenditure at the NFVF
Concerns about AFS for the financial year ended on 31 March 2016 IPO
Release of the Comperio forensic report into allegations of mismanagement at the NFVF
The Comperio forensic report was released at a press conference on 21 November 2018
The concerned stakeholders were invited to the press conference
Appointment of NFVF CEO
DAC has received a media enquiry on the appointment of the CEO and other staff issues
Interviews for the appointment of the CEO have since been concluded
A response from the NFVF has revealed that there were conflicts among the Council members, as a result, the Chairperson sought Ministerial concurrence to remove a Council member who was found to have breached Council resolution during the CEO interview process by insisting on retaining confidential documents that were supposed to be returned to the entity. The Council member has since been removed from Council by the Minister.

18. MARKET THEATRE FOUNDATION

19. MTFF
ISSUE
RESPONSE
Status report on the MTF allegations levelled against the Chairperson, the CEO and the CFO
The DAC appointed an investigation Company to investigate the veracity of the allegations levelled against the Chairperson of Council, the CEO and CFO.
The investigation has been finalised
The report will be shared with the Council to implement the recommendations
The Ministry has informed the Chairperson of the findings of the report and is awaiting his representations

20. SOUTH AFRICAN HERITAGE RESOURCES AGENCY

21. SAHRA
ISSUE
RESPONSE
Status on the investigation report on the allegations levelled against the Chairperson, the CEO regarding the irregularities expenditure, non-compliance with Supply Chain Management policies by the SAHRA Management and a breach of oversight responsibility by the Chairperson of Council
The investigation is complete and a final report has been handed over to the Minister.
The SAHRA Council has handed over criminal charges to the Law enforcement Agencies to implement the findings of the report.
The Council will handle the internal disciplinary chargers affecting the SAHRA employees.

22. DEPARTMENT OF ARTS AND CULTURE
4/5/2019
THANK YOU 17