Musicians of SAMRO lose R40 million due to bad investment decision
As if musicians in SA don’t struggle enough, members of SAMRO lose R40 million from an investment gone wrong.
As if it’s not bad enough, members claim that the investment was put through by their board without consent.
The board reportedly invested in a Dubai association called the Arab Emirates Music Rights Organisation (AEMRO), which was meant to yield a potential return of over R1 billion.
In classic SA luck, the deal went sour with no one able to explain what went wrong or whether the deal was ever genuine, according to 3 members.
Naturally things have gotten heated as members demand answers from the board, including executive officer, Nothando Migogo.
A marathon meeting was held at SAMRO’s headquarters in Braamfontein on Friday, as members tried to get answers as to why THEIR money was invested without their consent as well as how the deal went wrong.
Negligence of the highest order
As a Music Rights Organisation, countless members put their trust in you, and a move like this proves negligence of the highest order.
Some understandably furious members demand that the whole board resign while others wonder why the board isn’t investing money in the development of the SOUTH AFRICAN music industry before going abroad.
Naturally the board also failed to produce a financial report, which is a further testament to their uselessness.
The primary role of the organisation is to “administer performing rights on behalf of its members through the collection of license fees, which are then distributed as royalties,” as channel 24 explains.
Out of the estimated 15 000 members, only a few hundred attended the meeting on Friday.
SAMRO CEO Migogo told the City Press that the organisation lost R40 million due to its goal of expanding beyond the country’s borders.
This plan was devised 2 years ago, and Migogo claims that they informed members at the time and that the application was duly completed and submitted to Cisac for approval, which was then rejected by Cisac.
Musicians of SAMRO lose R40 million and we ask – who will be accountable?