Sport, Arts and Culture on forensic investigation into CCIFSA

The Minister of Sport, Arts and Culture, Mr Gayton McKenzie, has received the final forensic investigation report into the Cultural and Creative Industries Federation of South Africa (CCIFSA), conducted by Gobodo Forensic and Investigative Accounting (GFIA) on behalf of the Department of Sport, Arts and Culture (DSAC).

The investigation, which examined R51.8 million in public funds transferred to CCIFSA between the 2014/15 and 2023/24 financial years, has found extensive financial irregularities, governance failures, and breaches of the Public Finance Management Act and the Department’s own policies.

Key findings include:

An irregular contract addendum signed in March 2016 increased the original CCIFSA funding agreement by R772,884 with no submission, no justification, and no proper approval. R5.4 million in unspent funds at the end of the 2016/17 contract period was not returned to the Department as required, and was instead used by CCIFSA to fund its operations during years in which it had no valid contract with DSAC. A close-out report submitted to the Department contained financial information that misrepresented funds intended for the Downtown Music Hub as CCIFSA’s own operational funding.

In respect of the Downtown Music Hub programme, CCIFSA’s appointment as fiduciary agent followed a flawed procurement process, and DTMH funds totalling R13 million were commingled with CCIFSA’s own funds in a single bank account – a serious governance failure that the report finds was not in the best interest of DTMH and resulted in maladministration.

In respect of the Ushering In a New Era awards (commonly known as USIBA) Ministerial Conference and Awards, the R10 million first tranche paid to CCIFSA cannot be properly accounted for, as no supporting invoices or proof of payments were provided. The bulk of these funds were irregularly subcontracted to a third party in breach of the agreement.

A budget submitted by CCIFSA in support of a recent funding application reflected an administration fee of 32% of the total allocation – more than three times the 10% maximum stipulated in the applicable agreement. The administration costs in question consisted primarily of salaries and payments to CCIFSA executives.

Minister McKenzie has noted the findings with serious concern and has directed that the Director-General has been instructed to commence the appropriate processes against the departmental officials identified in the report. In accordance with their rights and the requirements of fair labour practice, those officials will be afforded a full opportunity to make representations and respond to the findings before any decision is taken on disciplinary action.

The Department will declare the irregular expenditure identified in the report in accordance with the PFMA, and will refer the report to the Auditor-General of South Africa, the Special Investigating Unit, and the Hawks for any further investigation they may deem appropriate. The Department will also conduct a full review of its current and future funding relationship with CCIFSA, including the legal basis on which any further public funds may be transferred to the federation.

On the ongoing public narrative:

The Minister wishes to directly address the narrative still being advanced by certain individuals associated with CCIFSA, who have sought to position themselves publicly as victims of departmental or political persecution.

“This report puts that narrative to rest,” said the Minister. “What this investigation has documented is not victimisation. It is mismanagement of public money, failure to account, failure to return unspent funds, and the misrepresentation of financial records. The South African public, and the artists and creatives this federation was meant to serve, deserve honesty about what happened to these funds. They will not be served by a public theatre of grievance designed to obscure the findings of an independent forensic investigation.

“The cultural and creative industries are too important, and the public funds entrusted to this Department too scarce, for us to allow R51 million in transfers to escape proper scrutiny. Where officials in my Department are found to have failed in their duties after due process, they will face consequences. Where funds were used irregularly, that will be declared and addressed. And where the law has been broken, that will be a matter for the appropriate authorities.”

The full report is a confidential internal departmental document. The report has been shared in confidence with the Portfolio Committee on Sport, Arts and Culture and with the Auditor-General as part of the Department’s accountability obligations.

Date published: 07 May 2026

Enquiries:
Spokesperson: Office of the Minister of Sport, Arts and Culture
Ms Stacey-Lee Khojane
Cell: 077 608 7579
E-mail: StaceyK@dsac.gov.za

Head of Communication and Marketing: Department of Sport, Arts and Culture
Ms Zimasa Velaphi
Cell: 072 172 8925
E-mail: ZimasaV@dsac.gov.za

#GovZAUpdates