DA demands forensic audit into dodgy Cape Minstrel Grants

Issued by Michael Waters MP – DA Deputy Member of SCOPA
07 Jan 2021 in News

The Democratic Alliance (DA) will request the Auditor General for a forensic audit into dodgy grants awarded to the Cape Town Minstrel Carnival Association (CTMCA).

In answers to Parliamentary questions, it was revealed the National Lotteries Commission (NLC) has little knowledge over a total amount of R54 403 058 that was allocated to the CTMCA.

The three Parliamentary replies (here, here and here) expose the lack of accountability and the possible abuse of NLC funding, paid in three instalments:

  1. R27 320 758,64 for an Annual Workshop and the Carnival Heritage Museum
  2. R13 322 300,00 for another Annual Workshop and Infrastructure
  3. A total of R13 750 000,00 was granted for a Socio Economic Cohesion Symposium, Cultural Awareness campaign and the introduction of a Community Magazine.

Museum:

With regards to the first grant of R27 320 758 the NLC could only account for R5 million (or 18%) which was used for building of the Carnival Heritage Museum.

It was further revealed the land (in Schaap Kraal, ERF 1221) was bought by the organisation but subsequently sold. The purchased land was under CTMCA ownership but it is now renting a building where the Museum is operating now in 5/7 Crete Road, Wetton, Cape Town.

It is unclear why a property was purchased and for what amount and why and to whom the property was then sold to, given that the CTMCA now has to rent a property.

Annual Workshop and Infrastructure:

With regards to the R13 322 300,00 grant for an Annual Workshop and Infrastructure, the NLC could only account for R 801 000.00 (or 6%) of the total grant which was spent on the workshop where a planned 150 people were to attend. If indeed all 150 attended, it amounts to a spending of R5 340 per person.

The remaining R12 531 300, supposedly for infrastructure is unaccounted for. This despite the fact I asked in my Parliamentary question, what amount was spent on infrastructure and what infrastructure was purchased.

Symposium and Campaign, plus Magazine:

The final grant of R13 750 000,00 for a Socio Economic Cohesion Symposium and Cultural Awareness campaign and the introduction of a Community Magazine, a total amount of “about” R8 290 000,00 was spent on the magazine, while the remaining amount of “about” R5 460 000,00 was spent on the Socio Economic Cohesion Symposium and Cultural Awareness campaign.

It must have been quite a symposium! Where is all the missing money?

Given the ambiguity of the replies and the fact that the NLC has little or no clue as to whether grant money was spent on what it was provided for, I will be writing to the Auditor General requesting that her office conducts a forensic audit into all the grants awarded to the Cape Town Minstrel Carnival Association.

It is unacceptable that charities combating child abuse and gender based violence are struggling to keep their doors open due to the lack of funding from the NLC while they splurge millions on vanity projects.