Samro under Fire for Lack of Transparency in Corruption Investigation
The Southern African Music Rights Organisation (Samro) has come under scrutiny for not sharing a forensic investigation report on corruption within the organization. The investigation, conducted by Fundudzi Forensic Services in 2023, uncovered fraudulent activities involving certain members, including composers, authors, and publishers, in collusion with a former Samro employee.
The focus of the investigation was on the financial years 2020 to 2022, revealing irregular royalty claims amounting to R3.4 million out of a total of R60 million claimed. While R30 million was paid out, the remaining amount remains in the Undocumented Works pool.
In response to the findings, Samro board chairperson Nicholas Maweni emphasized the organization’s commitment to rooting out corruption, strengthening governance, and restoring trust in the music industry.
Following the investigation, it was determined that the matter should be reported to the South African Police Service (SAPS) and the Hawks (Directorate for Priority Crime Investigation). However, without a case number, the police were unable to confirm the investigation, raising concerns about accountability.
Music Makers United (MMU), a newly formed organization of concerned citizens and industry professionals, has been vocal in its criticism of Samro’s lack of transparency. MMU has called on Samro to release the full Fundudzi forensic report to its members, citing unsuccessful attempts to obtain the document through legal channels.
Samro has defended its decision to withhold the report, stating that it is maintaining the integrity of an ongoing process. The organization has assured members and stakeholders that updates on the investigation’s progress will be provided at future meetings.
In addition to addressing the corruption allegations, Samro has implemented measures to strengthen internal controls and governance, including the appointment of additional independent non-executive directors and improvements to internal processes.
Another point of contention has been the issue of undocumented works, music that cannot be verified or matched with its rightful owners. MMU has accused Samro of treating unclaimed funds as slush funds, raising questions about transparency and accountability in the distribution of royalties.
Samro has explained that undocumented works consist of royalties that cannot be distributed due to missing identification, contractual information, or documentation. These funds are retained in interest-bearing accounts until they can be properly distributed to rights holders.
Despite the criticism and calls for greater transparency, Samro remains committed to addressing corruption, strengthening governance, and restoring trust within the music industry. As the investigation progresses, stakeholders will be updated on the organization’s efforts to ensure accountability and transparency in its operations.
