Artists United has called on the South African Broadcasting Corporation (SABC) to suspend royalty payments to Collective Management Organisations (CMOs), including the Southern African Music Rights Organisation, accusing them of corruption, poor governance and failing to pay artists the royalties they are owed.
In a position statement issued on Wednesday by its representative Eugen Mthethwa, the organisation said the public broadcaster should not be pressured to make further payments to CMOs while it continues to battle financial difficulties.
Artists United alleged that many collecting societies receive millions of rand from music users such as the SABC through blanket licence agreements but distribute only a portion of the money to artists, leaving large sums undistributed.
The organisation claimed some CMOs have retained artists’ royalties for years while citing “undocumented works” as the reason for withholding payments.
It further alleged that SAMRO has hundreds of millions of rand in undistributed royalties and questioned the organisation’s decision to terminate the services of a third-party company that had allegedly helped identify and pay royalties to artists in marginalised genres such as choral music and maskadi
Artists United accused some CMOs of using undistributed funds for sponsorships and benefiting a select few instead of paying artists.
The organisation also claimed collecting societies are required under Companies and Intellectual Property Commission regulations to distribute all collected royalties, less administrative costs, but alleged that they continue to retain substantial amounts every year.
Despite the SABC’s own financial challenges, Artists United said the broadcaster has continued paying royalties, including blanket licence fees, while many artists remain unpaid for royalties dating back more than a decade.
The organisation called on the SABC and other royalty users to immediately stop making payments to CMOs until independently audited financial reports are released, outstanding royalties are paid to beneficiaries, and governance structures are restored through properly elected boards and regular annual general meetings.
Artists United further alleged that a forensic investigation uncovered the theft of more than R60 million involving SAMRO board members. It also referred to a recent court judgment involving SAMRO Chief Executive Officer Annabell Lebethe, alleging that the ruling raised further concerns about the organisation’s governance.
The organisation claimed that some CMOs have failed to hold annual general meetings for years and alleged that SAMRO has not conducted board elections for more than 18 months, rendering its current board illegitimate.
Artists United said it was not opposed to artists receiving royalties but argued that payments should only resume once CMOs demonstrate transparency, accountability and proper governance.
It added that it is prepared to support the SABC, including as a friend of the court if necessary, to help establish what it described as a fair and transparent royalty system for South African artists.
