Message from the Council – PESP Industry Briefing, 14 May 2021

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Message from the Council – PESP Industry Briefing, 14 May 2021
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Johannesburg – The NAC welcomes the creative and cultural sector to another PESP Industry Briefing. This webinar provides weekly updates on the progress made in respect of the disbursement of the Presidential Employment Stimulus Programme (PESP) funds and how funds are distributed. This follows the previous briefing session, which was held on Friday, the 7th of May 2021.

The NAC received an allocation of R300 million, of which R285 million was to be distributed for PESP funding. As of today, the following milestones have been achieved:

  1. The NAC announced a total of 1 331 applicants that were approved for the PESP grant.
  2. To date, a total of R 208 355 256.60 has been paid to 1 300 beneficiaries, which is a combination of 70% of the grant value (the first tranche) and the full grant amounts payable to beneficiaries.
  3. We can now say that 98% of 1 331 beneficiaries have now received 70% of the grant value (the first tranche) and full grant amounts.
  4. Of the total grant amount of R285 million, 73% of payments have been disbursed to beneficiaries, including those that have concluded their projects. This is in accordance with the PESP agreement between the Department of Sport, Arts and Culture (DSAC) and the NAC.
  5. As of this afternoon, the first tranche payments due comprises: applicants made up of 4 payments still to be made, 10 contracts still to be sent to beneficiaries on receipt of the revised required information and 12 contracts sent but not yet received back from beneficiaries.
  6. The balance of the second tranche/final payments will be paid in various intervals following receipt of required reporting.
  7. By the close of business today, 1 returned contract will be processed for 1st tranche payment, which is a further R 7 626. This will bring the total number of paid beneficiaries to 1 301, approximating to R 208 362 882.60.
  8. The anticipated number of work opportunities retained and created by contracts returned now stands at just over 26 000.

 

We can confirm that as of today, there are only 22 beneficiaries who have not submitted their documents and who, unfortunately, stand to forfeit their grants. Beneficiaries with outstanding documentation or contracts not yet returned were notified of the deadline.

Many beneficiaries who have received their first tranche payments have, or are, in the process of submitting their interim reports. Reporting is now open on the GMS portal for all beneficiaries who have received payment. Beneficiaries are required to submit their reports around the timelines stated in their contractual agreements. Beneficiaries can view the requirements and guidelines for reporting on our website here: https://www.nac.org.za/funding-news/pesp-reporting-requirements-and-guidelines/

The submission of the interim reports, which needs to indicate the project activities and provide proof of expenditure, must be followed by the submission of the final report, which will indicate the remaining activities and expenditure to complete the project. Final reports will be accessible to all beneficiaries on the GMS portal upon approval of the interim report.  We urge beneficiaries to submit proper and credible proof of expenditure as part of their reporting. Once final reports are submitted with compliant tax clearance pins, the second (final) tranche payment will be processed.  All projects need to be completed by the 31st of May 2021

Beneficiaries whose outcomes are outstanding forms part of the declined applications. The GMS has been updated to indicate that such applications have been declined.  This will be followed up by declined letters to each applicant. Council has uncovered some inconsistencies in how some of the applications were declined and the matter will be subjected to an audit investigation.

We thank all beneficiaries who have shared their innovative projects with us. We continue to urge beneficiaries to continue to share their posters with us on our social media pages and via email at communications@nac.org.za.

This Council remains fully committed to successfully completing the PESP process to ensure that the PESP funds reach all beneficiaries so that they can retain and create the much-needed work opportunities in our industry.

ENDS…

For Media Enquiries: Council Spokesperson, Clr. Tshepo Mashiane – 072 037 3358

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