Arts council boss Rosemary Mangope’s golden handshake

Editor’s note:

• The following article has been updated to correct a number of inaccuracies following a complaint to the Press Ombud.
• In its initial version, the headline incorrectly published as fact that former NAC chair Rosemary Mangope had struck a secret deal to receive a multi-million Rand golden handshake, as well as the use of a work laptop and cell phone.
• This was stated as a fact, though the claims were mere allegations, and the terms of the deal have since been revealed, proving these allegations as false.
• The initial article also omitted details about the Public Protector’s findings on an investigation into Mangope, which determined that she did not falsify a funding application by the SA Roadies Association (Sara), despite finding that the application had been improper.
• This omission was an error.
• Finally, the original article failed to give the NAC sufficient opportunity to respond to the allegations of corruption levelled against Mangope by Freddie Nyathela, president of non-profit organisation SA Roadies Association.
• This failure was also a regrettable error.
• The Citizen would like to apologise to both the NAC for the above errors, which have been rectified in the article below.
• The full ruling of the Ombud can be accessed at https://www.presscouncil.org.za/Ruling/View/national-arts-council-vs-the-citizen-4644

Former National Arts Council (NAC) CEO Rosemary Mangope, who left the entity before a disciplinary hearing against her could be concluded, struck a secret golden handshake with the council last month.

Mangope and CFO Clifton Changfoot were charged and faced disciplinary hearings following a forensic investigation into artists’ R300 million Covid-19 relief funds, known as the Presidential Employment Stimulus Programme (PESP).

According to sources at the NAC, Mangope threatened to spill the beans during the last leg of her disciplinary hearing, vowing that she “would not go down alone” at the arts council.

“That is when her fellow managers realised that they could also get into trouble if she revealed all. The hearing was halted and all charges against her withdrawn,” said one source who wouldn’t be identified as they are not permitted to speak to the media.

A second source said staffers were left shocked by the agreement.

“Those of us who found out that the former CEO is still earning her salary while she does nothing were left shocked and dismayed too.

“She is a ghost employee of NAC now, and managers agreed to that… it’s illegal.”

According to an NAC press statement dated 29 April 2022, Mangope’s hearing, led by an independent chairperson, began on 14 December 2021 and resumed again this year between 7 and 10 February, 23 and 25 March and again on 4 April.

“Prior to the conclusion of the hearing, the NAC and Ms. Mangope agreed to part ways amicably. The mutual separation agreement was signed by the parties on the 14th of April 2022 and its terms remain confidential.

“Following the conclusion of the agreement, the NAC has withdrawn the charges against Ms. Mangope,” read the statement.

Probe into relief funds meant for artists

As the Covid pandemic raged on, protesting artists and creatives staged a sit-in at the NAC offices in Newtown, Johannesburg, last year, demanding answers on the relief payments.

They demanded that council pay them what’s due to them, adding that they had lost confidence in Minister Nathi Mthethwa and his department.

At the forefront of the sit-in was opera singer Sibongile Mngoma, who slept on the floor along with many of the artists, including Mercy Pakela and others.

The PESP controversy saw musician Chicco Twala writing an open letter claiming that ‘King of Kwaito’ Arthur Mafokate and his family benefited from the fund meant for struggling artists.

But Mafokate denied the claims, saying he hadn’t received a cent from the NAC.

This prompted Mthethwa to launch a forensic investigation into how the presidential relief funds were disbursed.

The damning report found that Mangope failed to ensure internal control and financial management. It also found that she had not ensured that the funds were managed properly.

The investigative report further showed that five former council members were implicated in receiving R511,000 illegally.

She was then found to have misrepresented information to the executive committee which continued to approve funding for applications beyond the allocated PESP budget, when no formal submission requesting additional funding from Treasury was submitted.

Regarding Changfoot, he was found to have failed to exercise financial and management oversight when more than R8 million was awarded to applicants, even though no approval had been granted by the executive committee.

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Mangope’s history of questionable conduct

The former arts boss is the daughter-in-law of the late bantustan leader Lucas Mangope. She married his son, North West ActionSA leader and retired army general Kwena Mangope.

Her career in the arts started at the once revered Mmabana Cultural Centre in Mahikeng during the reign of the former Bophuthatswana leader.

Mangope, a former senior official in Mthethwa’s department, was appointed NAC boss in 2013.

She had found herself in hot water at the arts entity before.

The NAC placed her on suspension in 2018 after a whistle-blower lifted the lid on a possible conflict of interest and irregular awarding of arts funding.

Along with two other officials, she was implicated in the alleged contravention of the PFMA (Public Finance Management Act), and of illegally awarding herself a salary increase and bonuses, among others.

She was later recalled from special leave after a disciplinary hearing exonerated her on all the charges.

Public protector finds against Mangope

Meanwhile, in 2015, allegations of corruption, financial mismanagement and misconduct in funding applications were levelled against Mangope by Freddie Nyathela, president of non-profit organisation SA Roadies Association (Sara).

The organisation trains youth in the technical and production sector of the arts.

Nyathela’s complaint to Public Protector Busisiwe Mkhwebane alleged that there was impropriety and abuse of the Expired Projects Surplus policy by Mangope and the council. The NAC adopted the policy in 2015 to enable it to access surplus funds instead of returning the money to the Treasury as is legally required.

He further alleged that Mangope falsified an application for funding using Sara’s profile without his knowledge. The Public Protector, however, found this not to be the case.

Mkhwebane’s 2020 report found that NAC’s surplus funds policy was unconstitutional and inconsistent with Treasury regulations. Investigators further found that using Sara’s previously rejected application without its knowledge and consent was an improper conduct that constituted maladministration.

In her submission to Mkhwebane, Mangope stated that she did not inform Nyathela about the application and Sara as she didn’t want to “raise his hopes”.

“I find the reasoning, such as that they did not want to raise his hopes, when in fact such an application was presented to the executive committee in their name, unacceptable,” said Mkhwebane.

As part of the remedial actions, she directed Mangope to apologise in writing to Nyathela and that the NAC amend the surplus fund policy, align it with Treasury regulations and block NAC staff access to the funds.

She directed Mthethwa to oversee the implementation of the remedial action within two months.

Riled up by the damning findings, Mangope launched a bid to have the public protector report set aside.

In return, Nyathela, who had vowed to fight on, laid corruption charges against Mangope with the police.

Speaking to The Citizen, Nyathela said he was first “sent from pillar to post” by the National Prosecuting Authority (NPA) in Gauteng, who first declined to prosecute.

He then contacted NPA boss Shamila Batohi‘s office.

“The NPA office in Gauteng refused to prosecute even though the Hawks advised that Mangope should face corruption charges, especially on the illegal internal policy on surplus funds, which the public protector said was unconstitutional.

“I then made submissions to Batohi, and it seems things are beginning to move now.

“The NPA in Gauteng is now [busy] with the case, the Hawks came to see me last week, we went through my complaints to ensure nothing is left out.”

He said the alleged corruption at NAC was fueled by the unfettered access to the surplus funds.

“They adopted that policy to implement a looting scheme. Those are the funds that are supposed to help young artists in this country… talented youngsters are rejected and not afforded funding just because they are not part of the inner circle at NAC… that arts council is rotten,” he said.

Calls for NAC to explain Mangope secret agreement

Last week Democratic Alliance (DA) MP Veronica van Dyk said she asked Portfolio Committee on Sports, Arts and Culture chairperson Beauty Dlulane to request the NAC board to appear before Parliament and explain Mangope’s golden handshake and departure last month.

“That this was allowed to happen is shocking, but not surprising. No doubt, Rosemary Mangope will soon resurface in another position of power at a public entity where she will once again be allowed to irregularly and inconsistently manage to the detriment of beneficiaries.

“The fact that the terms of the agreement between Mangope and the NAC – a public entity – is confidential just reeks of further possible malfeasance. South Africans, especially our long-suffering arts community, deserve to know the intimate details of Mangope’s pardon,” she said in a statement.

National Freedom Party (NFP) spokesperson Canaan Mdletshe called on the NAC to make the agreement with Mangope public.

“This cannot be a matter that is concluded and finalised privately when there are public monies involved. We want transparency, and accountability from the NAC and Minister Nathi Mthethwa.”

The department, he added, has “dismally failed” artists, sports and arts development.

“It is quite clear that the NAC has failed in its duties to protect and prioritise the sustainability of its mandate in ensuring that arts and the industry survive in this country.

“But it is becoming clear that part of the reasons why this department is failing is because of a weak political head in Minister Nathi Mthethwa. This is the department that has become a cash cow for corrupt individuals.”

Mdletshe called on President Cyril Ramaphosa to direct the Special Investigating Unit (SIU) through a proclamation to probe NAC.

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‘Terms of the agreement won’t be disclosed’

In her reply to The Citizen‘s questions on Friday, NAC chairperson Celenhle Dlamini would not budge, saying the details of the agreement will remain sealed.

She further denied that Mangope was offered a salary and other benefits until she turns 65.

“Ms. Mangope was suspended as CEO in February 2021 and, following a disciplinary process and the subsequent conclusion of a settlement agreement between herself and the NAC in April 2022, she is no longer in the employ of the NAC.

“The terms of this settlement agreement are confidential and will not be disclosed,” she said in an email.

She would not answer why Mangope’s hearing was stopped before it could be wrapped up nor why the charges were withdrawn.

Meanwhile, Nyathela has taken the NAC matter a step further and wrote to National Assembly Speaker Nosiviwe Mapisa-Ngcakula on Thursday, asking her to get Dlulane’s committee to urgently intervene.

Mapisa-Ngcakula’s office acknowledged receipt of his letters.

According to a trove of email correspondence Nyathela forwarded to The Citizen, he first wrote to Dlulane in March, asking her to call the NAC board before her committee to account, including on Mkhwebane’s findings against Mangope.

“I will not rest until the corruption at the NAC is tackled. They hijack people’s ideas and NGOs and use them to claim monies. This can’t be allowed, this is done at the expense of our people, it’s heartless.

“All this is happening while young people are unemployed and loitering while an arts cabal misuses public budgets meant to help them,” Nyathela said.

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