Pollen Creative Media accused of financial mismanagement and fraud

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SCREEN AFRICA EXCLUSIVE: Bridget Scarr, the managing
director of Pollen Creative
Media, is a South African entrepreneur. She co-founded The Hummingbird Group,
which consists of five companies that offer creative content, advertising and
technology services, and was named one of South Africa’s Top 200 Young South
Africans by the Mail and Guardian in 2014. Prior to founding Pollen, Scarr garnered
production and management experience working at advertising agencies, production
and post-production companies. In the last year her management of various
businesses within the Hummingbird Group as well as her interaction with
organisations such as the Department of Trade and Industry (dti) and Media,
Information and Communication Technologies Sector Education and Training
Authority (MICT SETA) have come under scrutiny, eventually erupting in a series of
allegations which were posted on social media platforms by anonymous whistle-
blowers.

Scarr was accused of not paying her staff, receiving funding for projects which were
never completed, obtaining loans with no intention of paying them back, receiving
bursary funding which was never paid over to institutions and even fleeing the
country with partner Tobias Jaeger. Screen Africa was alerted to these allegations
by an anonymous Twitter account, which has since been suspended. It has been
confirmed that Scarr is back in the country, and she states the purpose of her trip
was to attend the MIPCOM content market, held annually in France.

In August 2014 Pollen Creative Media elected to run a year-long animation training
programme called Afriantics. The full-time programme would see animators of
varying levels of experience participate in one of three projects (two 22 episodes of
20 minutes and one 52 episodes of five minutes) as a way to enhance their skills
and knowledge. According to an anonymous source, MICT SETA had provided
funding for the 60 participating junior animators, and Scarr had included this
contribution in her dti rebate application. The source stated that the rebate was
processed, with a number of milestone payments made. The source also claimed
that facilitators abandoned the programme due to salaries not being paid for two
months. Jabu Sibeka, senior manager of Learning Programmes at MICT SETA
confirmed: “The MICT SETA has taken the necessary steps to ensure that all interns
have been placed with a new service provider that has undertaken to complete the
programme.’ When asked about funds contributed by MICT SETA to execute this
initiative, Sibeka responed: “This information is part of a service level agreement
(SLA); due to a confidentiality clause in the SLA, MICT SETA cannot disclose such
information.’ Scarr added, “Pollen TV rendered services to the official production
entity, Brave Creative Media, which is headed up by Matsobane Lebelo. The
production is currently in its final stage and is expected to be finished by the end of
the year.’

A registered MICT SETA vendor, Pollen Creative Media also facilitates bursary
payments to AFDA students on behalf of the institution as it cannot pay the school
directly, and has been accused of withholding these funds. AFDA issued the
following statement to Screen Africa: “AFDA can confirm that for a number of years
Pollen TV has channelled MICT SETA funds in the form of bursaries to AFDA
students. There is truth to the allegation that Pollen TV has fallen behind on their
payments and as a result thereof over the past two years 34 students have been
negatively affected by this to an amount of R850 000.00 in outstanding student fees.
It must be understood, however, that students enter into an Enrolment and Tuition
Agreement with AFDA, the service provider, and the students remain contractually
responsible for the settlement of all fees, irrespective of where their funding is
sourced. Thus, AFDA has no other recourse but to make demand for outstanding
fees against such contractee, such demand having been made.’ MICT SETA has
stated that it is taking legal action in this regard, while Scarr states, “Pollen TV has
several contracts with MICT SETA and has worked with SETA excellently over the
past five years without any incident. Pollen is still expecting payments from SETA
as part of the current contracts. Currently, there are two active contracts in place
with SETA and neither one has been completed to date. For outstanding payments to
AFDA there is a payment plan in place, which was agreed upon by both
parties.’

A local businessman, who asked to remain anonymous, claimed to be one of many
people in the industry who loaned Scarr money to assist with what she explained
was cash flow constraints in her business. The half a million rand loan, which was
issued early in 2015, was never repaid despite a signed acknowledgement of debt
agreement between the two parties. After months of delays, the source confronted
Scarr: “I actually went round there unannounced. At that stage they said that they
had paid and that the money hadn’t yet reflected in my account so I had requested
a bank certified proof of payment. I pitched up at their offices and then got Bridget
and her finance manager into a meeting and they called the bank. The bank said
outright that no payment had been made and that no payment had ever been
attempted. It became clear that she could not be telling the truth. After that she cut
me off, would not speak to me or return my calls. From that day all correspondence
has been through attorneys.’

Scarr responded to allegations in a press statement issued by PR agency Meropa.
In it she states that allegations against the Hummingbird Group stem from “one or
two disgruntled former employees’; that the group is “100% operational’; that cash
flow issues have resulted in “scaling back on staff’; and that “all outstanding
payments will be honoured in accordance with agreements already in place with
staff and service providers.’

She added, “I feel deeply for anyone who is adversely affected by this – we have all
been affected. I am so grateful to all team members who are still going strong with
us, our suppliers who are so graciously carrying us, and all creditors who are
remaining patient and supportive. We want to reiterate to them that all due
diligence and effort is being put in to right the ship.’

Many small businesses face cash flow problems, which is perhaps why Scarr
received empathy and support from her peers, financial institutions and those that
loaned her money. Said a source: “There’s a lot of talented producers out there.
There’s not a lot of talented business owners and runners. Broadcasters pay late,
clients pay late, the Reserve Bank holds back approval. We live and die by cash if
you are a contract based business, which is why I had empathy. I didn’t want a
business I liked to go out of business.’

Scarr seems to have an answer to all the allegations against her, whereas a
number of complainants contacted by Screen Africa are unable or unwilling to
provide any comment as they are currently pursuing litigation against her. Many
speculate that Scarr’s actions are as a result of bad financial management and an
inflated sense of importance, while a number of industry players have alluded to
more insidious dealings. While the matter plays out in the legal system, the whole
story is yet to be seen.

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