Promoter Gets Fraud Bail

Kusasa Entertainment owner Duncan Heafield is due in court May 29 to face a US$4.3 million fraud charge following botched Celine Dion and Josh Groban shows in South Africa.

He appeared at Randburg Magistrates Court April 24, where he was granted bail of Rand 150,000 (US$20,000).

The action is being brought by the Krok family, which has made fortunes in property, pharmaceuticals and the development of Johannesburg’s Gold Reef City.

The Kroks claim to have funded Heafield’s disastrous Dion tour, which had fans up in arms when it turned into a logistics nightmare.

Prosecutor Vargani Naidoo said the state had information that Heafield was preparing to emigrate to Canada, but the beleaguered promoter offered to surrender his British and South African passports to get bail. The court granted it on condition that he does not interfere with state witnesses.

In a statement prepared by his lawyer, Heafield said he was willing to stand trial and would deny guilt on all charges.

The Kusasa chief is also facing a separate R900,000 (US$120,000) charge in Durban, while several suppliers are reportedly bringing further actions against him claiming unpaid debts.

Heafield is suing fellow South African promoter Hazel Feldman for R111 million (US$14 million).

"We have advised of our intention to defend the action. We are also reserving our rights with regard to a counter-action with costs – heavy costs," Feldman told Pollstar, four days after Heafield was granted bail.

The Dion tour and a canceled run of Josh Groban shows, which Groban’s management blamed on Heafield not fulfilling his contractual obligations, have already brought down Ticketconnection.

The ticketing company, which had the exclusive rights to sell the Dion and Groban shows, was unable to meet the demands for refunds.

Ticketconnection managing director Lisa Kuhle said her company advanced box office takings to Heafield so he could pay his Groban deposits, but has so far failed to get the money returned.

"The Promoter is telling the media and customers that Ticketconnection owes him Rand 20 million [US$2.64 million] and this is why he has not refunded the public. This is completely false. We have even advised him to send an auditing firm to inspect all transactions relating to this event and he has not done so to date," said a note Kuhle posted on Ticketconnection’s Web site.

"The promoter is also in the process of suing Hazel Feldman for Rand 111 million. This I believe is an attempt for him to get everyone else to pay his debts or at least try and spin some positive PR for himself after last month’s media slaughter," it said.

"Duncan Heafield, the promoter, was a close personal friend of mine, and to a lot of people involved in these tours, even once I believe to Hazel Feldman. His actions have had a detrimental knock-on effect to a number of people’s lives including the ticket purchaser.

"It’s ludicrous, and he should not be allowed to get away with it," the note continues.

John Langford of rival promoter Big Concerts is upping the marketing spent on upcoming Counting Crows and James Blunt shows in a bid to make it clear to fans that they have no connection with Kusasa and that their ticket money will be safe. Big Concerts is currently in negotiations to join Live Nation and is widely tipped to produce a rescheduled Groban tour.