Arts and Culture Minister Ben Ngubane responds to allegations in last week’s M&G that he knew about a secret ‘slush fund’
Hazel Friedman’s article, “How much did Ngubane know about secret funds?” (M&G March 29 to April 3) raises two issues of concern regarding my relations with Pact (Performing Arts Council of Transvaal). The first is the extent of my knowledge of the Pact trust funds, the second is whether I had made private policy agreements with individuals within Pact. I will address the two issues separately.
There is some degree of confusion about the extent of the Ministry of Arts, Culture, Science and Technology’s structural involvement in the running of the performing arts councils. The councils are associated institutions that receive a large portion of their funding from the Department of Arts, Culture, Science and Technology. They are therefore answerable, finally, to this department in terms of how they account for these funds.
The councils are, however, registered as Section 21 companies. Each has its own board of directors and its own CEO. The affairs of the councils are therefore run, not by the ministry, but by each company’s own board.
It is for this reason that I have stated that the existence of the Pact trust funds did not require my approval, as they were a matter internal to Pact. As a Section 21 company, Pact is not required to seek approval from me or anyone else for its management practices and decisions.
Friedman is correct in stating that I was aware of the existence of these funds. Deputy President FW de Klerk and I were both made aware of the funds in a meeting held with Pact on November 28 1994.
The meeting informed us of the motivation for these funds as a mechanism for dealing with financial implications of retrenchments if and when they occurred. The funds’ designation as such was made consistent with negotiations between Pact management and Pact employees’ unions and with fair labour practices. In the light of this, the funds were positioned as legitimate vehicles.
When it was formed, the ministry began a process of restructuring the performing arts councils through insisting that new boards be elected. The CEO of Pact, Louis Bezuidenhout, resigned on September 4 1995. Had more senior managers resigned at this time, the stability of Pact would have been threatened. As minister of arts and culture, I had the responsibility of ensuring that Pact, an associated institution funded with public funds through the Department of Arts and Culture, continue to run smoothly.
At my request, key personnel were asked to stay on at Pact. Two employees stayed on until November 30 1995. Another two are still with Pact and are there on a contract basis until the end of April. I was unaware that these individuals had taken their severance packages when I asked them to stay on. Had I known that these individuals had received pay packages in addition to remaining at Pact, I would never have agreed to their continued employment.
The possible irregularities in the management of the Pact funds is something which I take extremely seriously. Indeed, action was taken immediately after this matter was brought to the ministry’s attention.
I have launched an investigation into the purpose and management of the funds in question, whether inappropriate payments may have occurred. When all available information has been consolidated, we will be able to decide on the most appropriate steps to be taken. This may entail a forensic audit of the funds, to evaluate their legitimacy as it relates to the new board and CEO. Alan Joseph, the new CEO of Pact, and John Kani, the new chair of the board, are as eager as I am to see that this issue is sorted out as soon as possible.
Friedman also suggests in her report that I reached an agreement with the opera department of Pact towards the end of last year regarding the future of the Pact Opera Company. The suggestion is that I secured the future of the company. I want to clarify my position in this regard.
I have consistently assured Pact, the other performing arts councils and the public at large that, firstly, the physical and human resources of the councils are regarded as national assets that will be maintained in the future; and secondly, that opera and ballet, along with all other art forms in South Africa, will be promoted and developed.
I am acutely aware of the Arts and Culture Task Action Group (Actag) recommendations regarding the performing arts councils. I have not entered into any private policy agreements that undermine the Actag process.
There is a strong sentiment in the arts community that opera companies should, rather than receive direct funding from national government, apply to the proposed National Arts and Culture Council for funding. These policy options are currently under consideration and will be clarified in the White Paper. In making these decisions, let me assure you that I have the best interests of the arts in South Africa at heart.