A company owed by the Countdown Music Festival has opened a criminal case against the organisers of the show.
This after the organiser, LGVN Construction and Suppliers, which received a R1-million sponsorship from Buffalo City Metro, allegedly sent a fraudulent proof of payment for R80 000 to one of its service providers 10 minutes before the event.
Empire Events, which was responsible for security and emergency services at the event, had refused to render services without payment.
It is alleged that LGVN’s Lindelwa Nkente then sent the fraudulent proof of payment to Empire for the company to render its services.
A police spokeswoman confirmed to the Daily Dispatch that a case of fraud had been opened on Tuesday.
Another service provider, Sounds Fantastic, which was responsible for sound and stage set-up, is owed more than R300 000, according to owner Ben Goldblum.
Simphiwe Mashexa of MDP Group Mass Media said Nkente owed him R35 000 for his work.
Mashexa was responsible for marketing the event and doing posters.
Mashexa, who has worked with Nkente in the past, said he had hoped things would be different this time.
“This is not the first time this is happening to me. The same thing happened in 2015 but this time around they promised that they would process everything on time,” he said.
Mashexa quit a week before the event after Nkente failed to pay him a deposit of R17 500.
Contacted by the Daily Dispatch yesterday, Nkente said the payments had been coming in dribs and drabs and that the company had since effected payments to those owed.
“I have communicated this with these service providers, particularly Ben. I had discussions with him that I will make the rest of his payment at the end of this month,” she said.
Mkhululi Costa Vena, who was contracted to do hospitality, but ended up taking the role and duties of project manager, has had to deal with a number of local artists who have also been not paid.
Vena’s management fee was R63507, but he had only received R5000.
Apart from the non-payment of artists, he said Absa Stadium had also been not paid a balance of R50 000.
Nkente has denied owing money to the stadium.
According to the service providers, Nkente blamed Computicket for the delayed payments and at some point said she was waiting for BCM tourism to make a payment.
But Vena said: “Besides the tickets from the Computicket sales, more than 7000 tickets were sold at the gate for R200 on the day of the first event. They cannot say they are waiting for Computicket.”
BCM spokesman Sibusiso Cindi told the Dispatch this week that LGVN had received its full payment from the metro.
Cindi said service providers could lodge complaints with BCM and the matters would be taken to its legal department if there were any merits to the claims.
“The legal department will then engage Countdown, and remind them about the clause regarding payment of service providers within 30 days,” he said.
“BCM will make a legal demand that Countdown observes its contractual obligations, as refusing to do so brings the name of BCM into disrepute.” — poliswap@dispatch.co.za
Countdown Festival firm could face the music
This after the organiser, LGVN Construction and Suppliers, which received a R1-million sponsorship from Buffalo City Metro, allegedly sent a fraudulent proof of payment for R80 000 to one of its service providers 10 minutes before the event.
Empire Events, which was responsible for security and emergency services at the event, had refused to render services without payment.
It is alleged that LGVN’s Lindelwa Nkente then sent the fraudulent proof of payment to Empire for the company to render its services.
A police spokeswoman confirmed to the Daily Dispatch that a case of fraud had been opened on Tuesday.
Another service provider, Sounds Fantastic, which was responsible for sound and stage set-up, is owed more than R300 000, according to owner Ben Goldblum.
Simphiwe Mashexa of MDP Group Mass Media said Nkente owed him R35 000 for his work.
Mashexa was responsible for marketing the event and doing posters.
Mashexa, who has worked with Nkente in the past, said he had hoped things would be different this time.
“This is not the first time this is happening to me. The same thing happened in 2015 but this time around they promised that they would process everything on time,” he said.
Mashexa quit a week before the event after Nkente failed to pay him a deposit of R17 500.
Contacted by the Daily Dispatch yesterday, Nkente said the payments had been coming in dribs and drabs and that the company had since effected payments to those owed.
“I have communicated this with these service providers, particularly Ben. I had discussions with him that I will make the rest of his payment at the end of this month,” she said.
Mkhululi Costa Vena, who was contracted to do hospitality, but ended up taking the role and duties of project manager, has had to deal with a number of local artists who have also been not paid.
Vena’s management fee was R63507, but he had only received R5000.
Apart from the non-payment of artists, he said Absa Stadium had also been not paid a balance of R50 000.
Nkente has denied owing money to the stadium.
According to the service providers, Nkente blamed Computicket for the delayed payments and at some point said she was waiting for BCM tourism to make a payment.
But Vena said: “Besides the tickets from the Computicket sales, more than 7000 tickets were sold at the gate for R200 on the day of the first event. They cannot say they are waiting for Computicket.”
BCM spokesman Sibusiso Cindi told the Dispatch this week that LGVN had received its full payment from the metro.
Cindi said service providers could lodge complaints with BCM and the matters would be taken to its legal department if there were any merits to the claims.
“The legal department will then engage Countdown, and remind them about the clause regarding payment of service providers within 30 days,” he said.
“BCM will make a legal demand that Countdown observes its contractual obligations, as refusing to do so brings the name of BCM into disrepute.” — poliswap@dispatch.co.za
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