One Of The Most Successful record labels in south africa Mabala Noise announced yesterday that it had dismissed Mhlo Gumede with immediate effect.
In A statement released by Mabala Noise owner, Reggie Nkabinde, It Read:
“It is alleged that Gumede has been extorting monies from up and coming musicians with the promise to give them recording deals. He has also been embezzling money from the company‚ thus the company has pursued criminal charges against Gumede‚” .
“A friend of mine told me that a young artist had approached them asking to help them raise funds to Download signed by Mabala Noise. The person at Mabala Noise asking for money was apparently using my name and when we did some investigating we found that the matter went back to Mhlo. We called him in to show him the evidence we had.
“At the end of the day we terminated his contract because we had proof of wrongdoing and were confident in our case. We then alerted the police and opened a criminal case against him‚” Sikhulile who is The Label Manager said.
Repeated attempts to contact Mhlo for comment on these allegations have been unsuccessful.