Sport, Arts and Culture Minister Gayton McKenzie has fired the entire council of the National Film and Video Foundation after it ignored his warnings about an illegal appointment.
The minister dissolved the NFVF Council three months after he first raised concerns about the body appointing one of its own members as acting chief executive officer.
McKenzie says the council knew the appointment broke the law but did nothing to fix it until he threatened to disband the body.
“I gave this council written notice of the problem in July and offered it two lawful ways out. It took neither. The arrangement ended only once dissolution was on the table, which eroded the last of my confidence in this council,” he said.
Council admitted mistake
The trouble started in July when McKenzie wrote to the council chairperson and pointed out legal problems with appointing a council member as acting CEO.
The minister gave the council two legal options to resolve the issue, but it ignored both.
On 14 September, McKenzie issued a notice that he planned to dissolve the council. The council sent written responses on 18 September, which the minister reviewed before making his final decision.
In its response, the council admitted the appointment was unlawful. Section 13(4) of the National Film and Video Foundation Act does not allow the appointment of an acting CEO from outside the foundation.
The council also accepted that the member’s resignation was invalid because it did not follow the law. This meant she held an executive role while still serving on the council, which broke the rules and created a conflict with the council’s oversight duties.
Other problems contributed
McKenzie said other issues also influenced his decision to dissolve the council.
The council chairperson recently resigned. The council also ignored ministry guidance on how to handle the suspension of the former acting CEO.
“Accountability at entity level cannot be optional, and it cannot wait until somebody is caught,” McKenzie said.
He thanked council members for their service to the foundation and South African film, but insisted the decision was about institutional accountability rather than questioning anyone’s honesty.
Funding will continue
The minister has put new arrangements in place to prevent disruption to filmmakers and the industry.
The foundation’s CEO will now take on the responsibilities of accounting authority under the Public Finance Management Act until a new council is appointed.
All approved and committed funding will continue, including money allocated under the current PESP6 Blockbuster cycle. The department is working directly with foundation management to make sure payments to filmmakers, production houses, cast and crew are not interrupted.
An independent investigation into whistleblower claims at the foundation will also continue. The department’s internal audit unit is handling the probe, not the council.
McKenzie said he remembers what happened the last time the NFVF Council was dissolved, when funding approvals stopped for three months.
“That is exactly why we shall move quickly to appoint a new Council, and to ensure that processing continues in the legal manner. The people who depend on this Foundation did nothing wrong, and they will not be made to carry the cost of governance issues that were not of their making,” he said.
The process to appoint a new council will start soon.
