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The Chairperson of the National Arts Council (NAC), Ms Angie Makwetla, must appear before parliament’s Standing Committee on Public Accounts (SCOPA) to give a detailed account of the financial mismanagement of Downtown Music Hub (DMH).

Yesterday, a Democratic Alliance (DA) delegation visited DMH - the recording studio that was bought from Gallo Music by the Department of Arts and Culture in 2008, with the intention to support the development of the local music industry.

The studio has significant heritage value, and has, under Gallo music, produced some of the most talented musicians in South Africa, such as Lucky Dube, Ladysmith Black Mambazo and Yvonne Chaka Chaka. The DA, however, wanted to confirm whether the money that continues to be allocated to this project was justified and whether the facilities were still being put to effective use.

Our visit was prompted by the feedback from the Department of Arts and Culture to SCOPA, in which we were told that R18.5 million has been spent on the DMH over a period of five years, but that the Special Purpose Vehicle set up to run the studio has not produced financial accounts for the last three years and remains a black hole in financial statements of the National Arts Council (NAC) – which was charged with its management.

The studio has, however, become a white elephant that has only one fully functioning, digital recording studio, is operating at a loss and seems to have fallen through the cracks of financial mismanagement between the Department of Arts and Culture and the National Arts Council (NAC).

We were disappointed to find that the studios do not appear to be well-equipped and that most of the office space is currently being rented out. The manager expressed his frustration with the handover process from Gallo Music to the NAC, saying that no due diligence was completed before the studios were handed over. The studio also seems to duplicate many of the services currently provided to developing recording artists by the SABC.

We believe that the studio has the potential to serve as a vehicle for artistic development, but that further investment cannot be justified until its financial management has improved.

In addition, DA Deputy Shadow Minister of Arts and Culture, Dr Ena van Schalkwyk, will be submitting questions to the Minister of Arts and Culture, Paul Mashatile, to determine which artists, if any, are using the studios for recording purposes, how the NAC ensures access to artists from disadvantaged and rural communities and what is being done to prevent the expensive duplication of services provided by the SABC.

This looks like an asset that was bought at great cost, continues to be mismanaged and for which the owner cannot demonstrate that it is serving its intended purpose.

It is the people’s money that is being poured into DMH. The people must get value for their money, and benefits must accrue to them if further expenses are to be incurred.