By Fanelo Maseko
Serious allegations of financial mismanagement, governance failures, and leadership irregularities have emerged within the Media Development and Diversity Agency (MDDA), raising concerns about accountability in a state institution tasked with promoting media diversity.
In a strongly worded communication addressed to Deputy Minister Kenny Morolong, MDDA staff have accused the agency’s leadership of failing to act on critical issues first raised in March 2025. The letter, coupled with a follow-up email, paints a troubling picture of an organisation plagued by alleged irregular appointments, internal divisions, and potential financial misconduct.
R12 Million Surplus Funds Spark Legal Concerns
At the centre of the controversy is the alleged retention of approximately R12 million in surplus funds, which staff claim should have been surrendered in line with national financial regulations. According to the communication, the MDDA has continued to hold and accrue interest on these funds, raising red flags about compliance with the Public Finance Management Act (PFMA) and National Treasury regulations.
Staff argue that this conduct could expose the agency to financial irregularities, adverse audit outcomes, and reputational damage, undermining public trust in an institution already facing funding challenges.
“The continued retention and interest accrual on such funds expose the MDDA to potential financial irregularities and may constitute a contravention of the PFMA,” the staff noted.
Calls for Urgent National Intervention
Frustrated by the lack of response from leadership, MDDA employees have indicated plans to escalate the matter to both the National Treasury of South Africa and the Parliament of South Africa.
They are calling for:
- An urgent Treasury investigation into the legality of the retained funds
- A parliamentary inquiry into governance failures
- Immediate surrender of any unlawfully retained funds
- Consequence management for responsible officials
- Stronger internal controls to prevent future violations
Leadership Crisis and Governance Breakdown
The attached letter reveals deeper structural issues within the MDDA. Staff allege that the agency’s board chairperson has overstayed the legally mandated five-year term, potentially violating provisions of the MDDA Act.
Even more concerning are claims that the agency’s CEO was irregularly appointed, a finding reportedly confirmed by the Auditor-General of South Africa. Staff say this has led to a collapse in management structures, declining morale, and a breakdown in operational efficiency.
Allegations of corruption and nepotism have also surfaced, with employees warning that inadequate internal systems have left the organisation vulnerable to abuse.
Broken Promises After Ministerial Engagement
The crisis follows a March 2025 meeting where Deputy Minister Morolong engaged separately with MDDA staff and board members, promising to investigate the concerns raised. However, more than a year later, staff claim there has been no feedback, action, or communication from the Deputy Minister’s office.
The lack of follow-through has deepened frustration among employees, who say all internal channels have now been exhausted.
Public Trust at Stake
The MDDA plays a critical role in supporting community and small media enterprises across South Africa. Staff warn that ongoing governance failures could severely impact its ability to fulfill this mandate—especially at a time when the agency is reportedly struggling to secure external funding.
“The MDDA has never lost funds to Treasury in its history. This situation reflects directly on current leadership,” the staff said.
Next Steps
Employees have confirmed that a comprehensive dossier detailing all allegations will be submitted to key oversight bodies, including the Presidency and the Public Protector, if urgent action is not taken.
