Taxpayers robbed and lied to: CCIFSA caught rewriting a R51.8 Million scandal

Denial. Spin. Propaganda

If you want to know why South Africa’s arts sector is in the gutter while a handful of "administrators" live like royalty, look no further than the 187-page Gobodo Forensic Report.

After a decade of burning through R51.8 million of your hard-earned tax money, the Cultural and Creative Industries Federation of South Africa (CCIFSA) has been caught red-handed.

The reaction from the creative sector was immediate. Aviwe Gqomfa, responded to the Minister’s statement and wrote:

"The mask has finally fallen. CCIFSA isn't a federation for creatives; it’s a self-enrichment scheme. While our artists struggle for resources, these people were busy "commingling" R51 million and hiking their own salaries.

"The forensic report by Department of Sport, Arts and Culture Minister Gayton Mckenzie confirms what we’ve felt for years: the biggest scam in the industry. Every single person responsible for this betrayal must be held accountable, charged, and face the full might of the law. We are done with "gatekeepers" who only look out for their own pockets."

But instead of hanging his head in shame, the National Coordinator, Luzuko Khohli tried to gaslight Gqomfa and the taxpayers.He wrote:

“I know where your excitement is but you may just have celebrated too early. For your information, all these findings refer to the period between 2015 and 2018. They found nothing in the current administration. Your minister owes us an apology for calling us criminal and corrupt.”

“All those who stole from government will be brought to book but the organisation will continue to do its part. I’m sure this information may be a bit disappointing, but that’s what your minister doesn’t tell you,” he continued.

What the report actually covers

The Public Dispatch has read the entire 187-page Gobodo Forensic Report. Khohli’s spin is not just wrong but it is a brazen gaslighting of every South African taxpayer who funds this circus.

Khohli wants you to believe the rot stopped in 2018. It didn't. Joy Mbewana’s current leadership took the reigns in August 2019. Since then, they have presided over five financial years of the investigation's scope.

During their period (2019-2024), the report found that there was non-compliance, manipulation of reports and irregular budget claims.

2019/20: Manipulated reports submitted under Mbewana

Just three months after Mbewana was elected, CCIFSA submitted a long-overdue close-out report containing deliberately manipulated financial information.

The forensic investigators did not call it a mistake but they used the word "manipulated." Amounts were misrepresented to justify payments, and the report explicitly states the financial information “was manipulated (by CCIFSA officials)”.

CCIFSA officials deliberately falsified financial information to justify spending R2.03 million. Whether Mbewana and Khohli wrote the lies or simply rubber-stamped them, they were the ones at the helm when fraudulent data was fed to the government.

2020/21: Current leadership’s own R2.5 Million MoA botched

On 8 May 2020, CCIFSA and DSAC signed a new MoA for R2.5 million. This agreement was concluded entirely under the current administration. The first tranche of R1.5 million was paid shortly after signing.

The second tranche of R1 million was withheld. The reason, as stated in the Gobodo report at paragraph 1.3.3:

“unsatisfactory / incomplete reporting submitted and lack of source documents.”

This was not inherited rot. This was Mbewana and Khohli’s administration failing basic accountability with fresh taxpayer cash.

The second tranche was eventually released in two parts during the 2021/22 financial year, a part-payment of R847,650 for a conference venue and a direct payment of R143,166. The total paid was R980,816. The current administration managed this agreement from start to finish.

2023/24: The 32% salary grab

This is the finding that demolishes Khohli’s claim entirely.

On 2 October 2023, CCIFSA and DSAC signed a MoA for R5 million. The first tranche of R4.5 million was paid shortly after signing.

The contract strictly limited administration fees to 10%. But the current leadership submitted a budget demanding a 32% administration fee, more than triple the maximum 10% allowed. This was going to their salaries and payments to executives.

They tried to loot your money directly into their own pockets. When the second tranche of R500,000 was paid, they couldn’t even produce the required supporting documents.

The R5.4 million that was never returned

Khohli also ignores the R5.4 million in unspent funds that CCIFSA was supposed to return to the state years ago. Instead, they used it to pay for their own operations during years when they didn't even have a valid contract.

The current leadership took office in August 2019. At that time, the R5.4 million had already been spent. But the question for the current leadership is:

• When they assumed office did they conduct a financial review of the organisation they were inheriting?

• Did they identify that R5.4 million in public money had been spent without a contract?

• Did they report it to DSAC?

• Did they take steps to regularise the situation?

If they did, there is no evidence of it in the Gobodo report. If they did not, they inherited a financial irregularity and did nothing about it for five years.

The scorecard of shame

Under Mbewana and Khohli administration the Gobodo report found the following:

• 2019/20: Manipulated reports submitted

• 2020/21: Funds withheld for terrible reporting

• 2022/23: One compliant year (the exception that proves they can do it when they feel like it)

• 2023/24: 32% executive payout attempt + half a million rand paid with zero documents

This is not old news but a systemic, ongoing contempt for public funds. It's an ongoing plight of artists caused by the 'so called leaders'.

Taxpayers demand answers, not more lies

Khohli’s social media defense is not a misunderstanding, it is a calculated attempt to protect a lucrative gravy train.

• He lied about the period.

• He lied about the findings.

• He lied about their innocence.

• He told the public the findings were old news,

• that the current leadership was clean, and that the Minister owed them an apology.

But the Gobodo report says the rot is fresh, active, and currently sitting in CCIFSA’s executive offices. The Hawks, SIU, and Auditor-General are now involved. Irregular expenditure has been flagged. Consequence management is coming.

South African taxpayers, the ones who actually work, pay tax, and get nothing while this federation treats public funds like a personal slush fund are done with the excuses, the letters of demand, the PAIA games, and the victimhood.