Gabi le Roux, known for producing hits including SA anthem Nkalakatha by late kwaito star Mandoza, has accused Brian Mokoena, who once managed Arthur Mafokate’s record lable, of trying to capture the Souther African Music Rights Organisation (Samro), Sunday World reports.
Le Roux, a member of Samro’s board, says Mokoena is a member of a syndicate with links to the controversial Gupta family, who he alleges is using a forensic report that implicates the organisation’s bosses in impropriety to try get rid of the current board.
Le Roux sent a WhatsApp message that Sunday World has reportedly seen, alleging that a group of “rogue” musicians with loyalty to former SABC COO Hlaudi Motsoeneng is preventing the organisation from functioning properly.
“I am sorry to tell you that our music industry is now under seige from a small group of individuals [linked to Motsoeneng] who want to use the Dubai forensic report to topple the Samro board, Moshito board and all other structures, insert themselves, so capturing the South African music industry,” Le Roux said.
“Essentially, we now have the domination by multinationals on the one side and these rogues on the other side, and it is difficult to tell which grouping is more detrimental to our struggle to have a proper functioning and fair music industry,” he continued.
Motsoeneng told Sunday World that he has no idea why Le Roux is attempting to implicate him in this matter.
The Citizen recently reported that it has “grave concern” over a failed R47 million investment in a music rights initiative in the United Arab Emirates (UAE).
The deal was initiated years ago and signed in 2015 when the Arab Emirates Music Rights Organisation (Aemro) was recognised as a potential partner in line with Samro’s strategic growth priorities, reports Music In Africa.
According to Samro, the deal was then terminated after their board concluded that “the deal was unprofitable amid tough economic conditions,” and Aemro was not licensed to operate in the UAE.
At the time, the deal, which was introduced by former Samro CEO Sipho Dlamini, was based on a projected return on investment north of R1 billion for Samro.
“This investment was made after due consideration at the time but developments in the UAE, with our global partner collective management organisations [CMOs], coupled with an adverse economic environment in South Africa has heightened the risks. Hence, in the interest of Samro members, Samro has decided to terminate this venture,” read a statement released by the organisation shortly after the deal was terminated.
The deal has been subject to scrutiny by various parties for years and Samro has lost $3.5 million (R51 million) to date.
A report published by Fin24 details delays to the release of a forensic report into the investment and a gross lack of risk assessment on the part of management prior to signing off on the deal.