NGUBANE ANNOUNCES RESTRUCTURING OF THE STATE THEATRE

Issued by Ministry of Arts, Culture, Science and Technology

10 April 2000

In light of the first report of the recently appointed Administrator of the State Theatre, as well as high-level consultation with key advisors, Dr Ben Ngubane, the Minister of Arts, Culture, Science and Technology, today announced steps to restructure the Institution.

"It is envisioned that the State Theatre will be retained as a company and will continue to represent all of the arts forms it currently caters for. However, this will take place in a sustainable manner that takes into cognisance the broad spectrum of needs of the South African performing arts sector and the SA public" Ngubane said. He emphasised that restructuring to ensure appropriate delivery by the Institution was a priority.

Implications of the restructuring process include: -

• The State Theatre will be retained as a State asset, pending the finalisation of policy currently being developed
  
• All productions running at a significant loss will be cancelled and the auditoriums will be made available for private hire
  
• Non-core assets will be disposed of and the money raised through this process channelled back into sustaining the institution
  
• Approximately half of the staff will be retrenched, while between 200 and 300 staff members will be retained
  
• Retrenchments will occur in such a way that all core activities are maintained.

The Minister said that it is envisaged that the Special Reserve Fund will be recovered in future years, perhaps in two tranches of R12 million each.

In the short term, funding of the State Theatre will remain at approximately. R33 million. The amount of ~ R16 m, originally cut from its subsidy, will now be transferred to the organisation under its current management by the Administrator and Minister. This will be to ensure that it is able to continue running.

Minister Ngubane said that it would be detrimental at this stage not to allocate the funds to the State Theatre as this would seriously compromise its capability to function during the 2000/2001 financial year. Such a situation would not be in the interest of the arts sector or the communities served by the State Theatre.

However, Dr Ngubane reiterated his commitment to ensuring that funds that were inappropriately spent are recovered from the State Theatre. It is envisaged that, as from the 2001/2002 to 2002/2003 financial years, the original amount of R24 million, not disclosed in the State Theatre's financial statements will be recovered.

Minister Ngubane said that he was satisfied that this process is the most effective possible in the current context.

With regard to determining whether any of the Board Members or management are culpable or could be held liable for the current financial situation of the State Theatre, the Minister announced that:

• The Administrator, in terms of his current mandate, will initiate a forensic investigation, by appointing an independent firm to determine responsibility and culpability, if any, on the part of the Board and management
  
• Following a discussion between the Minister, his Director-General Dr Rob Adam and Judge Willem Heath, the Heath Special Investigating Unit will use all available means for investigating and recovering funds for the State.

Further inquiries: Kimberley Worthington, Tel: (021) 465 4850 e-mail: pd10@dacst3.wcape.gov.za