R62m Royalty Scandal: Inside Samro’s Buried Report

In 2022, the Southern African Music Rights Organisation (Samro) quietly commissioned a forensic probe into allegations that millions in royalties had been irregularly claimed by board members and major publishers. The investigation, conducted by Fundudzi Forensic Services, uncovered questionable claims worth nearly R62 million. Instead of acting decisively, Samro buried the findings — a report now obtained by Daily Maverick.

This is the first in a series unpacking how one of South Africa’s key music institutions may have failed its members.

A Platform That Backfired

Samro launched a digital portal in 2020 to allow all 156,000 members — not just big publishers — to claim undocumented works. The goal was transparency, but it backfired spectacularly. Within two years, R62m in claims were under investigation. Of this, Samro had already paid out R31m, often without proof of copyright ownership.

Giants Under Scrutiny

Two of the world’s biggest publishers — Sony Music Publishing and Universal Music Publishing Group — were flagged in the forensic report. Whether their claims were fraudulent remains under investigation, but their involvement adds global weight to a local scandal.

Sheer Publishing, a major local player, was singled out for possible criminal investigation. Evidence suggests some of its claims were facilitated by ex-Samro insiders. One former manager, Clint Louw, allegedly exploited his inside knowledge after leaving Samro, later consulting for Sheer and Sony.

A Broken System

Samro’s royalty system, handling hundreds of millions annually, is riddled with weak points. It still relies partly on manual recordkeeping — handwritten playlists, inconsistent spellings, and incomplete data. These errors create “undocumented works” — royalties not linked to their rightful owners. In 2021/22 alone, Samro reported R24m worth of undocumented works.

This “vending machine” of unclaimed songs, ranging from classical works to radio jingles, became easy pickings. According to investigators, publishers and board members manipulated data or claimed works under vague titles, pocketing royalties that may never have belonged to them.

Fallout and Cover-up

The Fundudzi report recommended criminal charges against at least 60 publishers, authors, and composers. But just as the probe gained traction, Samro’s COO, Mpho Mofikoe — who initiated the investigation — was suspended. Before her suspension, she filed a case with the Hawks, citing fraud and misrepresentation.

Instead of transparency, Samro appears to have chosen damage control. Board members implicated in the report were asked to resign or temporarily removed, only to be reinstated months later. Samro denies burying the report, insisting Mofikoe’s suspension was merely “precautionary.”

What’s Next?

The scandal strikes at the heart of Samro’s mission: ensuring artists are paid fairly for their work. With global publishers implicated and local insiders accused of exploiting the system, the fallout could reshape how royalties are tracked and distributed in South Africa.

For now, musicians, composers, and publishers are left waiting to see whether justice — and accountability — will prevail.

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