NAC probe unravels as sham: Diphofa and Bhoola back at desk.

Stalemate turns to suspicion

Months after the National Arts Council (NAC) ostensibly placed two key executives on "special leave," whispers from within the organisation suggest the entire process was little more than window dressing. Julie Diphofa, the former acting CEO, and Reshma Bhoola, the acting CFO, are allegedly back at work, their desks occupied and influence intact, despite a ministerial directive for suspension and promises of an independent investigation. As of March 2026, no public outcomes have emerged from the probe, fuelling accusations that it was a sham designed to placate critics without delivering accountability.

This development casts a long shadow over the NAC, an entity tasked with stewarding public funds for South Africa's vibrant but under-resourced creative sector. With festivals, artists, and community projects still reeling from funding delays, the return of these figures raises pointed questions, Was the investigation ever genuine, or merely a bureaucratic dodge to shield insiders from scrutiny?

The suspension that wasn't

The drama ignited in September 2025 when Minister of Sport, Arts and Culture Gayton McKenzie issued a stern letter demanding the precautionary suspension of Diphofa and Bhoola amid allegations of financial irregularities, nepotism, and mismanagement of pandemic-era relief funds. The NAC board, led by Chairperson Eugene Botha, initially appeared to defy the order, issuing a statement on September 17 affirming that the pair were 'currently fulfilling their roles and 'not under suspension.'

It took until November 20, 2025, over two months later for the council to act, placing them on what Botha described as "special leave" rather than outright suspension. During a parliamentary briefing on November 21, Botha explained this as a measure to allow due process while an independent investigator probed the claims. Critically, the executives retained access to laptops, systems, and records during this period, a red flag raised by the Portfolio Committee on Sport, Arts and Culture, chaired by Joe McGluwa, who warned of potential evidence tampering and compromised integrity.

Yet, sources close to the NAC now allege that no meaningful investigation occurred while Diphofa and Bhoola were ostensibly at home.

An insider said:

"It was all for show. Meetings were minimal, documents untouched, and the 'probe' fizzled out without fanfare."

By early 2026, both were reportedly reintegrated into operations, their return unannounced and unchallenged.

Lingering shadows of PESP scandals

At the core of the controversy lie the ghosts of the Presidential Employment Stimulus Programme (PESP), a lifeline intended to sustain artists during the COVID-19 crisis. Under Diphofa and Bhoola's watch, millions were disbursed, but the Public Protector's report uncovered troubling diversions: funds rerouted to companies linked to NAC insiders, beneficiaries with no ties to the creative industries, and a R65 million scandal involving alleged fraud and nepotism.

Early transparency efforts backfired when the NAC published a full list of PESP 1 recipients, exposing irregularities that sparked public outrage. Subsequent rounds saw the council pivot to opaque reporting, releasing only project titles, no company names with Diphofa citing unsubstantiated 'security threats' to justify the secrecy. Parliamentary probes have repeatedly flagged these as 'dirty deals,' eroding trust in an institution meant to empower the marginalized.

Diphofa and Bhoola are no strangers to such storms. Their appointments as acting executives followed the 2021 suspension of prior leadership over similar PESP mismanagement. Critics argue this pattern points to a entrenched culture of impunity, where allegations accumulate but consequences evade.

Parliamentary pushback and frozen futures

The Portfolio Committee has not minced words. MP's in the Portfolio Committee highlighted the risks of retained access during leave, questioning why the NAC dragged its feet on the minister's directive. In November 2025 testimony, Botha defended freezing the CEO and CFO recruitment, insisting it would be unfair to proceed without allowing Diphofa and Bhoola to apply once cleared. But with no clearance in sight and their apparent return the process remains stalled, leaving the NAC under interim leadership and vulnerable to further instability.

Union voices, including NEHAWU, have amplified calls for administration, citing governance lapses and staff morale in freefall. The Auditor-General's reports continue to flag financial controls as weak, while artists decry delayed grants that threaten livelihoods. "How can we trust an entity that can't even investigate itself?" one grant applicant told investigators.

Broader ramifications for the arts

This saga underscores systemic woes in South Africa's cultural funding landscape. The NAC's mandate, which is to foster free expression and cultural diversity is undermined when public funds appear captured by internal networks. With PESP phases still unfolding amid economic pressures, the lack of resolution risks job losses in festivals, theatres, and community arts programs.

Minister McKenzie's initial tough stance has softened in public view, with no follow-up enforcement reported. As March 2026 dawns, the absence of investigative outcomes suggests the probe may indeed have been performative, allowing business as usual to resume quietly.

victory for evasion over accountability?

Yet, the story isn't over. Insiders hint at brewing leaks and potential whistle-blower actions that could force transparency. For now, Diphofa and Bhoola's return , if confirmed signals a victory for evasion over accountability, leaving the creative sector to wonder: Who truly benefits from the NAC's stewardship? In a nation hungry for cultural renaissance, such sham processes only deepen the divide between promise and reality.