More light shed on Joyous Celebration financial and governance issues

Longstanding governance disputes date back several years, says director Lindelani Mkhize

Lindelani Mkhize, founder of Joyous Celebration. File photo. Veli Nhlapo.25/03/2013. © Sowetan / Sunday World.
Lindelani Mkhize, founder of Joyous Celebration.

Lindelani Mkhize, one of three Joyous Celebration directors, has issued a statement rejecting allegations of unlawful conduct related to the group’s finances and governance.

The co-directors of the iconic gospel group, Mthunzi Namba and Jabu Hlongwane, have accused Lindelani of multiple financial irregularities.

These include; failing to disclose and account for monies owed to the corporation, which led to Joyous Celebration Foundation NPC receiving a R1m tax demand from Sars in 2024; secretly securing sponsorships and hosting events; directing payments received for these events to personal accounts or companies; using company assets to fund more than R1m in personal travel and car rentals over three years; and taking a R300,000 loan from Joyous Celebration in 2017 and failing to repay it.

The allegations are part of an alternative dispute resolution application to the Companies Tribunal — which the Sunday Times has seen — filed last month by the Joyous Celebration co-founders after a recommendation in May by a Companies and Intellectual Property Commission investigator.

Responding to the allegations in a statement shared on Tuesday, Lindelani rejected any suggestion of improper or unlawful conduct, adding that the issues they were facing were based on longstanding governance disputes that dated back several years.

Lindelani also revealed that in December 2021 the two directors planned to exit Joyous Celebration.

“Historically, major events, sponsorship receipts and bookings were administered through an external managing agent. Upon that agency’s exit, these functions were administered internally through the Joyous Office under its duly appointed bank transactor. It was during this period of internal administration that significant liabilities, including tax-related obligations, accumulated and accounting concerns became apparent.

“Upon discovering these matters, Dr Mkhize requested historical bank statements and instructed an independent accountant to review the records. Formal written queries were addressed to the Joyous accountant regarding payments, accumulated tax liabilities and financial controls. The response was issued by Pastor longwane, who wrote: ‘Dear Mr Mkhize. If there is payments you want to ask about, I suggest that you ask me. Mpho does not make payments. He might have an idea about other things, but payments are made at the office.’”

Lindelani said he is dedicated to protecting the legacy of the group and has for approximately 24 months continued his production leadership role, maintained appropriate records and facilitated structured booking arrangements through a non-profit foundation affiliated with him to stabilise operations and protect the continuity of productions.

“Any administrative or financial oversight undertaken in recent months has been limited to interim stabilisation measures pending formal resolution of the governance dispute and potential sale.

“The central disagreement concerns governance principles, including the distinction between operational remuneration (performance fees linked to active participation) and ownership returns (dividends declared in accordance with financial performance and lawful resolution). Membership does not create an automatic entitlement to ongoing operational payments in the absence of participation or outside declared distributions.”

TimesLIVE


Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Comment icon