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The extent of the suspected malfeasance at the Commission and its rand value has not yet been specified. However, according to the 2021/22 annual financial statement, KZNFC was in a good financial footing.

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Sizwe sama Yende

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Just a few months after reaching its 10^th anniversary by achieving a Level 1 B-BBEE score, the KwaZulu-Natal Film Commission (KZNFC) finds itself on the radar of the Special Investigating Unit (SIU).

The SIU said in a statement that it had obtained President Cyril Ramaphosa’s authorisation to investigate allegations of serious maladministration in the affairs of the Commission - a state-owned enterprise under the KZN Department of Economic Development, Tourism and Environmental Affairs - and recoup any financial losses.

SIU spokesperson, Kaizer Kganyago, said in a statement that the SIU would probe:

·        • The procurement of and contracting for suitably qualified companies to partner and invest with the Film Commission in the development and operation of the KwaZulu-Natal (KZN) Studios including the Film Commission’s investment in KZN Studios;

     • Any unauthorised, irregular, or fruitless and wasteful expenditure incurred by KZNFC or the State. 

·        • Unlawful or improper conduct by officials or employees of KZNFC, the applicable suppliers or service providers or any other person or entity.

 “The Proclamation,” said Kganyago, “covers allegations of unlawful and improper conduct that took place between 1 July 2017 and 22 March 2024, the date of the publication of the Proclamation or before 1 July 2017 and after the date of the Proclamation that are relevant to, connected with, and incidental to the matters or involve the same persons, entities or contracts investigated.”

Kganyago said that in addition to maladministration, malpractice, corruption and fraud, the SIU would also identify system failures and make systematic recommendations to improve measures to prevent future losses.

The extent of the suspected malfeasance at the Commission and its rand value has not yet been specified. However, according to the 2021/22 annual financial statement, KZNFC was in a good financial footing. The entity had as at March 31, 2022, had an accumulated surplus of R 71.2 million. Its total assets exceeded its liabilities by R 71.2 million.

“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority (NPA) for further action,” he added.

Kganyago said the The SIU was empowered by the SIU Act to institute civil action in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation caused by acts of corruption, fraud, or maladministration.

KZNFC spokesperson, Mu Ngcolosi, did not respond to written questions.

This announcement dampens the high spirit in the KZNFC. Last October, the Commission celebrated its 10^th anniversary in which it also achieved a Level 1 B-BBEE score. The score put the entity in a favourable position when bidding and also qualifies it for some tax relief.