Parliament Slams NFVF
Parliament slams NFVF board for low attendance amid credit card misuse scandal, as only three members showed up to account for allegations including the former acting CEO’s use of a work card to buy booze worth R4,500, prompting anger from the portfolio committee on sport, arts and culture and calls for a full audit of the foundation’s operations plagued by governance issues, inappropriate appointments, and fund allocations to connected individuals. During the marathon six-hour meeting on Thursday, 4 September 2025, Minister Gayton McKenzie expressed disappointment over the board’s poor turnout, while the committee grilled officials on financial mismanagement, a recent burglary, high office rentals, and claims of bullying, highlighting systemic challenges at the National Film and Video Foundation that have led to demands for greater transparency and accountability in South Africa’s creative sector.
Committee Expresses Outrage Over Absent Board Members
The portfolio committee on sport, arts and culture was left fuming when only three of the National Film and Video Foundation’s board members appeared to present the entity’s annual performance plan and address serious allegations of misconduct. This low turnout drew sharp criticism from committee chairperson Joe McGluwa, who called it unacceptable and a sign of disrespect towards parliamentary oversight. The meeting, intended to scrutinise the NFVF’s operations and challenges, instead highlighted deeper governance flaws within the organisation tasked with supporting South Africa’s film and video industry.
Minister Gayton McKenzie, who attended the first half of the six-hour session, voiced his frustration, noting that as a minister, he had made time despite a busy schedule. “I just think it’s very unfortunate that I, as a minister, can make myself available,” he said. “I wasn’t available today but I made sure to write to the chair and inform him that I would be available for the first half of the meeting. The board members cannot simply decide they’re not available. It puts us in a very bad light. We shouldn’t do that.” McKenzie’s comments underscored the importance of accountability from public entities, especially those facing scrutiny over financial irregularities.
NFVF deputy chair Mthokozisi Radebe apologised for the misunderstanding, explaining that some members had misinterpreted the invitation. However, this did little to appease the committee, which pressed on with questions about the foundation’s R160 million budget constraints, of which R120 million is allocated to core work like training, leaving just R40 million for operations, with R37 million going to employee costs and nearly R3 million to office accommodation. This tight funding has strained the NFVF’s ability to fulfil its mandate of promoting film production, skills development, and industry growth.
Credit Card Misuse and Financial Irregularities Under Scrutiny
Central to the meeting’s tension was the revelation that the former acting CEO had used a work credit card to purchase alcoholic beverages worth about R4,500. NFVF CFO Peter Makaneta confirmed that the Auditor-General had flagged this expenditure as inappropriate. “There was about R4,500 that was flagged as money used via the credit card to purchase alcoholic beverages,” he said. In response, the foundation has withheld the amount from funds due to the former acting CEO, following the Auditor-General’s recommendation to recover the money.
The committee expressed shock at this misuse, viewing it as symptomatic of broader financial mismanagement. This incident adds to a litany of concerns, including allegations of inappropriately appointing council members without proper consultation and allocating funds to individuals with internal connections. These issues have eroded public trust in the NFVF, prompting calls for a full audit to uncover any further irregularities and ensure funds are used effectively to support the creative economy.
Makaneta also addressed a recent burglary at the NFVF offices, where laptops were stolen. “Our assessment is that there have been security breaches,” he said. “Managing security and cameras falls within the landlord’s mandate. The fact that this break-in took place means there have been indeed been security breaches.” Fortunately, the stolen items were insured, allowing the foundation to recover R240,000. In response, security has been beefed up, but the incident raised questions about the adequacy of protections for public entities handling sensitive data and funds.
High office rental costs were another point of contention, with the NFVF paying R2.9 million annually. Makaneta revealed plans to negotiate with the landlord and explore cheaper options in the Houghton area, aiming to reduce the rate from R170 to R120 per square metre. “We have engaged the landlord to review the rent, and we have also conducted our own market analysis, looking around the Houghton part-town precinct for cheaper options. In fact, we engaged the department — we had a CFO forum yesterday [Wednesday] where we raised this matter. We will engage the public works department to start a process to identify cheaper premises,” he said.
Allegations of Bullying and Favouritism Raise Red Flags
The committee delved into claims of bullying within the NFVF, including an applicant who submitted 17 funding requests only to have them rejected without explanation. Such allegations suggest a lack of transparency in grant allocations, fuelling suspicions that funds are directed towards those with connections rather than merit. This has led to demands for stricter oversight and an independent audit to investigate these practices and restore credibility.
Minister McKenzie faced direct accusations from EFF member Eugene Mthethwa of handpicking board members for personal gain. “You are deliberately destabilising the entities under your department for your own purpose,” Mthethwa said. “The National Arts Council has someone on suspension for 21 months. It is the same in all entities under your department. What you have done is not honest; you always quote the Bible when speaking in public; be honest and do the right things. Allow the public to comment on names of people you put to serve on boards.”
McKenzie vehemently denied the claims, asserting there is no legal requirement to publicise board appointments. “You do not have questions, but insults,” he responded. “There is no act that says I must open up names to the public. You come here to insult me and my religion as well as my political party.” He clarified differences between acting and permanent appointments and noted that individuals serving on multiple boards is coincidental and not unlawful. “This is not against the law,” McKenzie said.
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