Following our previous briefing session on the 9th of April 2021, we take this opportunity to update the sector about the progress made on the PESP funding initiative. First tranche payments are continuously being made to our beneficiaries, daily and we are happy to report that many paid beneficiaries are expediting their projects. It is exciting to witness these innovative projects unfold. Furthermore, we reiterate that the PESP funds allocated to the NAC have not gone missing.
The National Arts Council received an allocation of R300 million of which R285 million was to be distributed for PESP funding. As of this morning Friday, 16th of April 2021, the following milestones have been achieved:
- The NAC can confirm that a total of 1 331 applicants were approved for the PESP grant.
- 1053 beneficiaries have been paid their first tranche (70%) grants to the value of R168 811 395. Second tranche (30%) payments will be made after the reporting stage, as stated in beneficiaries’ contractual agreements and according to the new guiding figure;
- This means the NAC has now disbursed 59 84.9% of the funds in accordance with the first tranche payment agreements to approved and compliant beneficiaries;
- The remaining balance of the first tranche (70%) to be paid is now approximately R30 million.
- The final balance of R85.5 million second tranche payments will be paid after reporting stage, at various intervals.
By close of business today, a further 18 contracts worth R 909 376 will processed for payment. This will bring the total of paid beneficiaries to 1071, amounting to R169 720 771.
The remaining R30 million first tranche (70%) to pay up is made up of 260 contracts, which include the 125 applicants whose GNLs were sent out yesterday, 46 contracts yet to be received, 83 contracts that we have received and that is being processed for payment.
As payments are being processed, these amounts will fluctuate on a daily basis and we will continue to update the sector on our website and social media platforms.
The 125 beneficiaries who have received GNLs in the past 24-hours need to return their documentation by no later than Tuesday, 20 April 2021. Beneficiaries should note that should the NAC not have received these outstanding contracts by this date, the NAC will remove the application from the final approved list.
All outstanding contracts and GNLs need to be submitted by today, 16 April 2021, in order for us to expedite payments of their first-tranche grant amounts.
Beneficiaries who have received first tranche payments will need to submit their interim reports via the GMS portal, in order for their second tranche payments to be processed. The reporting templates for Stream 1 are now available on the GMS portal. We are currently updating all Stream 2 payments on GMS and their reporting templates will be available by the latest Tuesday, 20 April 2021.
We are also happy to announce that medium compliance applications, whose outcomes have been outstanding, have been approved by Council. This includes both individuals and organizations in stream 2.
We have heard the call from the industry for transparency on all payments made to date. To this end, Council has resolved that all paid beneficiaries should be published with amounts that indicate the first instalments made. This list will be made available on our website later today.
The sit-in group has had a serious impact in delaying the crucial work that the NAC must undertake to service the broader Cultural and Creative industries. For instance, the sit-in has impacted the finalization of the Provincial Partnerships Programme and the Annual Grant Call for 2021/2022. As a result, an eviction order has been granted and the Sheriff is making progress with effecting it. This comes after the court ruling issued by the Johannesburg High Court on Friday, 9 April 2021, which awarded the Order for Eviction for an illegal sitting-in.
The NAC encourages the artists to abide by the ruling while maintaining lawful conduct.
This Council remains fully committed to successfully completing the PESP process to ensure that the PESP funds reach all beneficiaries so they can retain and create the much-needed work opportunities in our industry.
For Media Enquiries: Council Spokesperson, Clr. Tshepo Mashiane – 072 037 3358