Gayton McKenzie: Council dissolved after dispute over acting CEO appointment

Sport, Arts and Culture Minister Gayton McKenzie has dissolved the Council of the National Film and Video Foundation (NFVF), citing governance failures and the Council’s handling of the appointment of one of its own members as Acting Chief Executive Officer.

McKenzie took the decision on 23 September 2026 in terms of section 6(10) of the National Film and Video Foundation Act 73 of 1997.

The decision followed a process that began on 7 July, when the Minister wrote to the then Chairperson of the NFVF Council outlining what he regarded as legal defects in the Council’s appointment of one of its members as Acting CEO.

According to the Ministry, McKenzie identified two lawful alternatives available to the Council, but neither was implemented and the arrangement remained in place.

On 14 September, the Minister issued a Notice of Intention to dissolve the Council and invited written representations. The Council submitted its response on 18 September, which the Minister said was considered before the final decision was made.

Council acknowledged legal concerns

In its written representations, the Council reportedly accepted that it had understood section 13(4) of the NFVF Act to prevent the appointment of an Acting CEO from outside the Foundation.

The Council also indicated that it did not maintain that the appointment was lawful.

The Ministry said the Council further acknowledged that the resignation of the member concerned was defective because it did not comply with section 7(3)(e) of the Act.

This meant the individual remained a Council member while holding executive office – a situation the Ministry said was contrary to section 6(8)(a) and created a conflict with the Council’s oversight responsibilities.

McKenzie said the issue went beyond a technical error.

“A Council that knows what the law requires and proceeds anyway has not made a technical error, but a choice,” he said.

“I gave this Council written notice of the problem in July and offered it two lawful ways out. It took neither. The arrangement ended only once dissolution was on the table, which eroded the last of my confidence in this Council.”

Other governance concerns considered

The Ministry said the decision was also influenced by other developments, including the recent resignation of the NFVF Council Chairperson.

The handling of the former Acting CEO’s suspension was also cited as an additional factor. According to the Ministry, guidance provided by the Department was not followed in that matter.

The Minister stressed, however, that the dissolution should not be interpreted as a finding of dishonesty against individual Council members.

“I thank every member for the time they gave to the Foundation and to South African film. But accountability at entity level cannot be optional, and it cannot wait until somebody is caught,” McKenzie said.

The distinction is significant because the dissolution concerns the governance and functioning of the Council as an institutional body, rather than establishing wrongdoing by every individual who served on it.

NFVF operations and filmmaker funding to continue

Despite the dissolution, the Ministry said measures have been put in place to prevent the disruption of the Foundation’s operations and funding programmes.

With immediate effect, the NFVF Chief Executive Officer will assume the responsibilities of the accounting authority in terms of the Public Finance Management Act until a new Council is appointed.

The Department has also directed that approved and committed funding continue to be processed.

This includes funding under the current PESP6 Blockbuster cycle, with the Ministry saying it is working directly with NFVF management to ensure that approved disbursements to filmmakers, production companies, cast and crew are not interrupted.

The Ministry said the independent investigation into whistleblower allegations at the NFVF will also continue.

The investigation is being conducted by the Department’s Internal Audit unit rather than the dissolved Council and will therefore proceed independently of the Council’s removal.

New NFVF Council to be appointed

The process of appointing a new Council has now commenced in accordance with section 6 of the National Film and Video Foundation Act.

The Ministry’s priority is to avoid a repeat of previous disruption following the dissolution of an NFVF Council.

McKenzie acknowledged that the previous dissolution resulted in funding approvals being delayed for approximately three months.

“I am acutely aware of what happened the last time this Council was dissolved, when funding approvals stalled for three months,” he said.

“That is exactly why we shall move quickly to appoint a new Council, and to ensure that processing continues in the legal manner. The people who depend on this Foundation did nothing wrong, and they will not be made to carry the cost of governance issues that were not of their making.”

What the dissolution means for the film industry

The NFVF plays a central role in South Africa’s film and television ecosystem, including supporting the development and production of local content and providing funding opportunities for industry participants.

The immediate concern following the dissolution is therefore continuity – particularly for filmmakers, production companies and workers whose projects have already received approval or are moving through funding processes.

The Ministry says those processes will continue while the new Council is being appointed.

The latest development effectively places the NFVF in an interim governance arrangement, with the Chief Executive Officer assuming the accounting authority responsibilities while the Department begins the statutory process of establishing a new Council.

The Ministry has framed the move as an institutional accountability measure, while simultaneously seeking to ensure that the dispute does not result in financial or operational consequences for filmmakers and other industry professionals who rely on the Foundation.

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