Joyous Celebration in Legal Turmoil: Former Musical Partners Fallout over Financial Mismanagement Allegations

Directors of popular gospel choir group Joyous Celebration, renowned for producing multi-award-winning hits, are set to trade legal blows over the handling of funds accrued from numerous musical ventures.

A weekend newspaper carried allegations made by director Jabu Hlongwane against co-director Lindelani Mkhize, accusing Mkhize of multiple financial irregularities linked to the choral group, which has contracts with major labels including Universal Music Africa and Motown Gospel.

Durban-based Joyous Celebration are also multiple South African Music Awards (Sama) winners and are internationally known for their dynamic live performances, having provided a platform for artists to launch solo careers

Hlongwane, who purportedly has the backing of the group’s third director, who is known to the publication, claimed Mkhize failed to disclose and account for monies owed to the close corporation that manages the group’s business activities.

Due to alleged non-disclosures by Mkhize, Hlongwane said the group was hit with a R1 million tax demand from the South African Revenue Service in 2024.

Other allegations levelled at Mkhize include claims that he secretly secured sponsorships from a premier telecommunications company and a banking institution.

The allegations form part of an alternative dispute resolution application lodged with the Companies Tribunal last month by Hlongwane and the other director.

Speaking to the Daily News this week, Mkhize refuted the financial impropriety allegations.

Mkhize said Hlongwane handled all banking matters and produced a 2016 letter from the bank in question, viewed by the publication, confirming the authority Hlongwane had. He claimed critical information regarding the close corporation’s banking transactions, including accrued debts, was not disclosed to him, adding that he only became aware of the group’s financial affairs after pursuing the matter further through an accountant.

He said Hlongwane initially resisted but eventually allowed the accountant access to study the group’s financial records.

According to the accountant, critical information had been kept under wraps, including debts and the SARS bill.

Mkhize said the accountant’s probe uncovered what he described as “shocking discoveries”, including substantial performance fees awarded to Hlongwane and the other director, which appeared disproportionately high compared to the compensation he received.

He said the fees allocated to him were “far less”, considering the work he had done to prepare the choir.

Mkhize said when he raised the findings with his partners, it triggered their fallout, with the two defending the disbursements they received. He argued that such payments should have been structured as dividends reflecting a fair distribution in line with performance contributions.

Mkhize said the group’s troubles began in the post-Covid-19 period, when he focused on Joyous Celebration’s survival and supporting the choir’s children, while his co-partners were absent.

“I felt isolated and alone,” Mkhize said, adding that he called for a directors’ meeting.

During that meeting, the other director allegedly expressed a desire to quit the group, saying: “I want to focus on my things.” Hlongwane also left the group thereafter, according to Mkhize.

He said their departures left him fighting to prevent the group from collapsing.

Mkhize said he then attempted to ensure an amicable separation, but the process was fraught with complications. Instead of the dissolution being handled internally, he said he received a letter from Hlongwane’s attorney in March 2022 demanding a “buyout” of the group, which came as a surprise.

It was at this point that Mkhize pushed for an accountant to examine the group’s financial records, uncovering various issues, including the SARS debt.

Another discovery, he said, was that Hlongwane and the other director were allegedly still drawing performance fees despite no longer being involved in performances, while he carried the burden of honouring Joyous Celebration’s musical commitments.

“How is it possible that you get paid when you have not worked?” Mkhize asked.

Addressing allegations that he pocketed an unauthorised loan, Mkhize said the money was remuneration due to him, as he had not drawn a salary from the group since its inception in 1996 and had only been paid for stage production work.

He said the R300,000 he received was recorded as a loan rather than remuneration, adding that he intended to settle it through dividends accruing to him. For this reason, it was documented as a director’s loan, and Hlongwane was made aware of it.

Mkhize said he was being unfairly singled out in scrutiny of the company’s financial practices, claiming only his loan was highlighted while the other directors’ drawings were not mentioned.

He said media reports portrayed him as having mismanaged the group’s finances, a claim he denied. He also refuted wrongdoing in relation to travel, car hire and hotel expenses charged to the company credit card, saying they were necessary business costs. He questioned why his partners’ credit card expenses were not subjected to similar scrutiny.

Mkhize disclosed that he has not been on speaking terms with the other directors for a long time.

“We have put up a facade in public for the benefit of the Joyous Celebration brand and to protect the group’s entire cast and crew who were unaware of what was happening behind the scenes. My last interaction with the other director was over three years ago, during a meeting with lawyers. Hlongwane and I have not been on speaking terms for a significant period,” he said.

When approached for comment, Hlongwane said the matter was being handled by their lawyers.

“I am not at liberty to talk about it until everything has been resolved. The whole situation is about the company changing its structure and direction. Fortunately or unfortunately, this process involves legal procedures that must be followed,” Hlongwane said.

The third director could not be reached for comment.

DAILY NEWS