Minister Nathi Mthethwa updates the Sector on the Presidential Employment Stimulus Package (PESP)

12 Apr 2021

As of Thursday, 8 April 2021, the following milestones have been achieved with regards to the PESP, administered by the National Arts Council (NAC):

948 beneficiaries have been paid their first tranche (70%) grants to the value of over R150m. Second tranche (30%) payments of these are to be made after the reporting stage, as stated in beneficiaries’ contractual agreements.

An additional 31 contracts to the value of R9.7m were processed for payment by close of business on Friday 9 April 2021, bringing the total to 979 beneficiaries being paid an amount of R160m.

Furthermore, there was a total of 30 contracts being submitted to finance for payment processing in the week starting today.
There are other contracts that have been either not returned by beneficiaries or contracts with outstanding queries and/or beneficiaries who have opted to not continue with their projects.

With respect to the 3rd Phase Relief Fund, it is important to further update the sector that out of the 2 315 applicants that were approved by adjudicators for payment, 939 have been verified by the finance unit and submitted to Business and Arts South Africa (BASA) for payment.

To date, 285 have been paid an amount of R2 850 000.

It is crucial to note that this status continues to change daily as more and more individual applications are adjudicated, processed by finance and paid. Once the individual applications have all been processed, the focus will then shift to applications from organisations. However, the department opted to prioritise the applications from individuals as this is more critical during these trying times.

As announced on 29 March 2021, the department has since engaged and brought on board the Special Investigation Unit (SIU) and finalised the Terms of Reference (ToRs). This means that the department is now ready to send out the call for quotations to secure an independent and legible service provider to undertake this important task of forensic investigation, as of today, 12 April 2021.

The department is aware of the order issued by the courts on 9 April 2021, ordering the artists occupying the NAC offices to vacate the premises of the NAC. We plead with the occupants to respect the court and judicial processes and leave the NAC offices, as matters pertaining to the PESP are being dealt with. On several occasions, we have met with them but they have not allowed the NAC to continue to do its critical work.

While we deeply sympathise with the plight of the sector, we would like to remind the artists occupying the NAC offices that their continued sit-in at these premises is an impediment to the finalisation of the PESP administration and disbursement process. It is also an obstruction to other important responsibilities of the NAC.

In conclusion, the department is applying maximum effort to ensure that we ease the plight of COVD-19 on the sector.

Media Enquiries:
Masechaba Khumalo: Spokesperson (Minister)
Cell: 082 858 4415