Late payments, and sometimes non-payments, are sending ripples of frustration through the ranks of the local film industry.

Bruce Mallinson, chief financial officer of Media Film Service, says David Wakelin of This Side Up Films owes them an amount that has run over R200 000 over the last few years. “We have since put a stop on his account,” says Bruce. “He deposited cheques in our bank account three years ago so that we could trade from thereon. However, all five of his cheques bounced.  He then disappeared for some time and resurfaced last year. So, we decided to deal with him on a cash-on-delivery basis only.  Wakelin rented gear on a COD basis, only to retain the gear for a second day of shooting. The second day has never been paid for.” 

Bruce then met with David, who said the outstanding payment would be forthcoming. “We said to him that if the payment did not happen, we’d be laying a charge of fraud against him,” says Bruce.

They then hired a private investigator and laid a case of fraud against David with a Constable Pritchard. A warrant of arrest was issued. 

Bruce claims that David bought a liquor store in Table View’s Marine Circle, only days after he told Media he had no money and was living from hand-to-mouth. David says he only bought into the bottle store as a percentage investor “and I have now lost that too due to bad debt.”

Bruce says to date they have had no payment from David despite the warrant of arrest.

Bruce claims David has started a new company, Diamond Dog Films, with his accountant Westley Knight  but David says this was just an idea.

Rod Zane Gallocher, owner of Outlaws Model Agency, says despite numerous phone calls and e-mails, he has not been able to retrieve his outstanding monies from This Side Up. To date his company is owed R19 560. The largest part of the money has been outstanding since December 2008.  Rod says getting lawyers involved is too expensive. Their current course of action is to discontinue working with This Side Up until all payments have been made.  Rod says The Cape Association of Model Agencies (CAMA) has made all their members aware of the non-payments from This Side Up, “So unless they sort out the money they owe, I think they will have a hard time finding talent,” he says.  

The Callsheet looked into a story on David’s late payment last year, but pulled the story after he promised to pay his debtors before we went to print. “As soon as The Callsheet withdrew the article, his intentions went out of the window. We still haven’t been paid,” Rod says.  

According to Rod, the money owed to Outlaws has been paid by This Side Up’s client. However, it has not been transferred to the rightful owner.

Mel Massyn, owner of Let’s Face It, says he has previously enjoyed successful business relations with David. “I had no qualms about doing another casting job for him in Durban,” says Mel. 

He explains that his company did another casting job in the middle of July for a Samsung India commercial. “I invoiced David on 12 July 2009 for R10 000,” says Mel.  After Mel contacted the Samsung client, he discovered that This Side Up had already been paid for their services by the client. 

The client expressed its dissatisfaction and said its good name was being tarnished. Mel confirms that once the invoice was 60 days overdue, he had to pay his suppliers out of his own pocket. Despite numerous e-mail promises from David, Let’s Face It has still not received any payment.  “My last correspondence with David was on 25 November 2009,” says Mel. “Since then it has been impossible to contact them via any form of communication device.”

Rachel Young of Razor Sharp Films says that David owes her an amount of R90 000, excluding interest, for work on a Spur job. She says the work was done before he had set up This Side Up Films.  Rachel says that although David has paid some of the initial R160 000 he has owed her since April 2007, she’s finding it difficult to get the rest. “We have also tried the legal route and we have also tried private detectives,” she says. “It’s all very expensive and doesn’t deliver results.”

David says this money “is an over payment and a tax error on Razor Sharp Films part. I have paid what I think is fair.”

Rachel adds, “I understand how hard it can be when a client doesn’t pay or there is a cash flow crisis in a business. It’s happened to many of us before and we know how the industry can crucify you for unpaid debts.” She feels there should be a group consensus on how these bad debtors should be allowed to work going forward.

One good story has emerged since The Callsheet’s last investigation into This Side Up.  Blessing Gurure, who owns Ideal Unit, says, “Fortunately, David managed to pay me after he received the article The Callsheet wanted to publish and a letter of demand from my lawyer.”

David says, “I will be paying all these people just as soon as I can get my own head above water.”

He adds that he’s brought roughly R25 million into the country for local suppliers and has supported thousands of people during the short time This Side Up has been in business.

Mike Bunn, financial controller of Media Film Service, says David is not the only one in the industry guilty of non-payment. In July last year, The Callsheet wrote an article about Anton Ernst’s film, Surviving Evil, and the various creditors that complained about non-payment. At that time, Anton assured The Callsheet, “I have put measures in place to ensure that the creditors will be in a preferential payment position.” 

However, Mike says to date Anton still owes Media Film Service R250 355.55 for work done on Surviving Evil.  “The most galling thing about this matter is that we were on the point of withdrawing equipment due to non-payment,” says Mike.  “Mr. Ernst prevailed on Media Film Service to allow the completion of the film, and gave a personal written undertaking that the account would be paid. So far these personal assurances have proved valueless. The problem is that a number of productions seem to be under financed and stringing creditors along is one way of making up the shortfall.”

Anton says, “In answer to Media Film Service’s statement, I can say we all have agreed that film producers and service companies share in this responsibility. We had a deal in place with Media Film Service’s Jannie van Wyk of R45 000 per week for five weeks and the bill ended up being more than R600 000. Somewhere between all the chaos of that production and Media Film Service’s delivering of the goods was an overage that was brought to the producer. I am open to discuss this with Mr. van Wyk, but all of us in this industry must share the responsibilities. Not just the producers.”
Astrid Stark