Scandal rocks South Africa’s music royalty agency

The Southern African Music Rights Organisation (SAMRO) is embroiled in a scandal relating to the suspension of its Chief Operating Officer, Mpho Mofikoe, on 4 August.

Insiders have claimed that Mofikoe revealed R30 million allegedly spent on board members and R60 million in suspected fraudulent claims. Because of this, she was issued a suspension letter, they allege.

SAMRO said that due to an ongoing investigation, they cannot confirm these figures.

“Her only mistake was being honest. She caused a stir, and now she’s facing consequences,” claimed a source, who spoke to Newsday on condition of anonymity.

According to sources, Mofikoe’s revelations triggered the Fundudzi forensic investigation, which examined questionable royalties and suspicious boardroom dealings.

A forensic investigation by Fundudzi Forensic Services uncovered over R3.4 million in questionable claims by former SAMRO employees, who allegedly enabled publishers to collect royalties without owning the works.

The report revealed gross irregularities, including payments made without proof of ownership and alleged employee involvement.

However, the board reportedly opposed the official trying to address the issues and instead closed ranks.

“She demanded accountability and wanted the corrupt removed. But the CEO urged her to forgive and move on. Mpho refused, calling it obstruction of justice,” said another source.

Tensions escalated after a contentious extraordinary general meeting on July 10, where three board members faced dismissal.

Insiders allege that Mofikoe was instructed to identify those board members during the meeting and is now bearing the brunt of her compliance.

“She followed orders but has become the target. The CEO removed her from the investigation and demanded all evidence be handed over or face charges.”

This followed reports of allegations of nepotism and power abuse against SAMRO board chair.

Sources reveal Maweni bypassed formal recruitment by sending a “connected comrade’s” CV directly to SAMRO’s general manager for consideration for a managerial role.

Mofikoe reportedly confronted Maweni’s interference, filed a formal complaint accusing him of unfair labour practices and abusing his position.

SAMRO, founded in 1961, is a non-profit copyright asset management society that protects music creators’ rights by licensing music use, collecting fees, and distributing royalties to over 15,000 members.

SAMRO distributed over R33 million in digital royalties in FY2024, and supports the music industry through education and advocacy, earning recognition as Africa’s leading Collective Management Organisation.

However, SAMRO has faced significant challenges, including criticism for delayed royalty payments, prompting protests from artists like Eugene Mthethwa.

The 2011 Farlam Commission highlighted inefficiencies in royalty distribution, and a 2019 lawsuit against former executives for alleged overpayments of R1.6 million raised concerns about governance.

SAMRO responds

SAMRO confirmed that that the COO had been placed on precautionary suspension on 4 August 2025.

“Contrary to suggestions in the public domain, the COO’s precautionary suspension was not retaliatory, as has been suggested,” said SAMRO.

“Instead, it was in response to preliminary findings pointing to potential internal transgressions.”

SAMRO stated that the precautionary suspension is standard to ensure an impartial process without interference, protecting both the employee and the organisation.

The organisation reassures stakeholders that all remedial actions, including forensic and criminal investigations, are ongoing without interruption.

To safeguard the integrity of these processes, SAMRO will not disclose any accusations publicly.

SAMRO acknowledged concerns following the 10 July 2025 Extraordinary General Meeting, where three Non-Executive Directors were removed and the decision was recently formalised.

The organisation takes member and industry concerns seriously, recognising members’ demands.

However, SAMRO emphasises that the Board must uphold its fiduciary duty by strictly adhering to governance requirements.

The organisation affirms it is acting with due care to ensure the process reflects members’ will transparently, lawfully, and correctly.

“SAMRO extends its sincere appreciation to all members who continue to participate and engage with the organisation, and remains committed to transparent and lawful governance and the continued protection of the economic and moral rights of South African music creators,” it concluded.