MEC says DA lied about monies paid to companies distributing Covid-19 relief grants to artists, athletes

Johannesburg – The Gauteng Department of Sport, Arts, Culture and Recreation said the DA’s Kingsol Chabalala lied by claiming that it had paid two entities R16.5 million to distribute R13.2m Covid-19 relief funds to athletes and artists.

The office of MEC Mbali Hlophe said in a statement that Chabalala had spread the lies despite the fact that they had submitted detailed responses to him on the matter in writing.

Chabalala had said it was extremely concerning that Business Arts South Africa (BASA) and the Gauteng Sports Confederation (GSC) were paid “such a ridiculous amount of money” which was higher than the amount individually paid out to artists and athletes. He also said the Covid-19 relief grant did not benefit the financially struggling Gauteng athletes and artists, but a few individuals, labelled as ‘department stakeholders’.

However the department said both BASA and GSC were paid R1 799 880 and not R16.5m million as Chabalala claimed.

According to the department, a total amount of R16 546 200 was paid to both BASA and GSC to distribute to artists and athletes.

BASA got R9 946 200 inclusive of their 10% administration fee for artists, and the GSC got R6 600 000 inclusive of their 10% administration fee for athletes.

“R13 206 000 was paid to 2201 beneficiaries for both sports and arts, at R6000 each resulting in a remainder of R3 340 200 out of which the entities were paid their 10% which amounts to R1 654 620 combined.

“That resulted in a surplus of R1 685 580 which they were requested to hold onto until the finalisation of the appeals process, for payment of additional beneficiaries.

“Due to appeals by artists and athletes, and them submitting outstanding documentation as required by the Gauteng Audit Service, an additional 799 beneficiaries were further added.

“That resulted in the Department increasing the funds to BASA by R805 800 and to GSC to R646 000 to accommodate the additional beneficiaries.

“This therefore means a total amount of R17 998 800 has been paid by the Department to 3000 beneficiaries, artists and athletes combined.

“The two entities in question have been paid R1 799 880 in line with the Service Level Agreement the Department has with them, to receive 10% of the total amount for administrative and disbursement purposes.

“It would be illogical for the Department to pay R16,5m to two entities as a management fee for them to disperse R13,2 million.

“Member Chabalala should know better than to rush to writing a statement and doing a door to door to media houses on nothing else but misinformation.

“As an MPL who has sworn to act with integrity, he has gone against his call of duty. In this regard the Department through the MEC with be reporting Member Chabalala to the Ethics Committee of the Legislature for his continuous gross misconduct,” the department said.

IOL