The South African Music Rights Organisation (SAMRO) is embroiled in a significant controversy, facing serious allegations of corruption and internal dysfunction from its members, while its leadership defends its financial performance and cites a police investigation for withholding a critical forensic report.
The dispute entered the public arena following allegations made by SAMRO member Tebogo Sithathu, who last week described the organisation as a “crime scene” that has been dysfunctional “for many years.” Sithathu specifically implicated the board, referring to “the notorious four so-called independent board members.”
In a right-to-reply interview, SAMRO CEO Annabell Lebethe firmly denied the characterisation. “Samro is not a crime scene,” Lebethe stated, countering the claims by pointing to the organisation’s recent financial performance.
She presented figures showing a year-on-year increase in royalties set aside for distribution, from R622 million last year to a preliminary amount of R683 million this year. Lebethe also highlighted improved operational efficiency, noting the cost-to-income ratio had been reduced from 40% in 2018 to 22.3% currently. “What we’ve seen in the past few years is a growth in terms of the money that Samro pays out… and we’ve managed to reduce costs,” she said.
The core of the conflict, however, revolves around a forensic report into alleged malfeasance. Sithathu had accused the SAMRO leadership of protecting individuals implicated in the report, including a former non-executive director alleged to have stolen money and now residing in the United States. He demanded the report be released to members, arguing “it’s their money and it’s their right.”
In response, Lebethe explained that the report had been presented to members in 2023 but its public release is being withheld on the advice of law enforcement. She stated that a criminal case had been opened with the Hawks, who have cautioned SAMRO that releasing the report could hinder their active investigation.
“We have repeatedly and consistently asked the Hawks to allow us permission to release the report,” Lebethe said, acknowledging the members’ plight for transparency. “We are purely acting out of caution… releasing the report does not jeopardize the criminal processes.”
The disagreement also extends to the recent removal of board members. Sithathu claimed the process to remove “independent directors” was a necessary due process. Lebethe countered that an initial vote to remove three non-executive directors on July 10th was invalid under the Companies Act. She clarified that SAMRO is working to facilitate a new, legally compliant process that allows the directors in question to make representations before any vote on their removal takes place.
Regarding member complaints about unpaid royalties despite their music being played, Lebethe acknowledged “historical concerns” and stated SAMRO has an obligation to correct inaccurate payments when provided with proof. “Where the member has demonstrated that money is due to them, we will do a post adjustment,” she said, emphasising the need for verification.
The organisation now finds itself at a crossroads, balancing its declared commitment to financial prudence and legal procedure against growing member demands for full transparency and accountability over the serious allegations of past corruption.