City seeks probe into Minstrel Lotto funding

This morning I submitted a formal complaint with the Office of the Public Protector on behalf of the City of Cape Town, requesting an investigation into the Lotto funding disbursed to the Cape Minstrel Carnival Association.

The City wants the Public Protector to investigate how exactly the association spent the nearly R40,64 million paid out by the National Lotteries Distribution Trust Fund between 2012 and 2014 - particularly in light of the fact that the City and Western Cape Government also invested several million rand into the event.

According to a statement issued by the National Lotteries Board last month, R13,32 million was paid in 2012 and 2013 for carnival costs, and R27,32 million was paid in 2014 for carnival costs (R14,32 million) and the Carnival Heritage Museum (R13 million).

The City and the Western Cape Government invested in the Tweede Nuwe Jaar celebration in good faith, but the handling of the event by the Cape Cultural and Carnival Committee left much to be desired. Chronic mismanagement, non-payment of service providers, and a lack of transparency interrupted this event several times.

During our negotiations, the City was also given false impressions by the minstrels regarding funding. The City was unaware of the additional funding being received from the Lotto Board as the minstrels had indicated that they had not yet received additional funding and that it was too late to secure additional sponsorships - only for the City to discover that they had been the beneficiaries of very significant funding.

In January, the Executive Mayor announced that in terms of the contract with the committee, the City would call for the audited financial statements of the committee to determine how public funds were spent and to prevent the kind of mismanagement from the organisers experienced this year.

The Mayor further indicated that the matter would be referred to the Public Protector if the statements were not forthcoming - and that is where we now find ourselves. As the City and Western Cape Government meet all the expenses of the Tweede Nuwe Jaar carnival, it is difficult to understand what the money could be have been spent on, especially as there was no visible expenditure on the carnival and the various minstrels troupes and boards have indicated that they have not received any benefit.

The use of public funds is for the public good, not to serve the private interests of a few individuals who insist on tainting the legacy of a celebration that is part and parcel of Cape Town's cultural landscape.

In the latest such incident, the City was forced to pursue a court interdict after numerous complaints from residents and the Schotschekloof Civic Association about the illegal minstrel back marches and the associated noise nuisance, public disturbance, anti-social behaviour, and safety concerns.

Despite ongoing attempts by the City to communicate with the minstrels and urge them to obtain event permits in order to abide by national legislation and the City's own Events By-law, cooperation from the minstrels has not been forthcoming.

The City came to learn about a potential back march planned for Saturday 14 February 2015 during a meeting with residents and the South African Police Service and, as a last resort and preventative measure, the City applied for an urgent interdict to prevent any illegal marches.

The City was successful and the court subsequently ordered that only the resident troupes from the Bo-Kaap would be permitted to parade before midnight. In spite of this, the court order was completely ignored. The back march activities started well after the court-specified time ofmidnight, with at least six troupes parading in the Bo-Kaap between 01:00 and until after 03:00, of which only three troupes were resident troupes from the Bo-Kaap. 

The City and its residents are legally obliged to adhere to all laws and by-laws, and the minstrels are no exception. We will therefore pursue this matter as the court will have to attend to the contempt of the court order issued.

"ANNEXURE A"

1. The complainant is the City of Cape Town municipality ("the City"), a metropolitan municipality established in terms of the Local Government: Municipal Structures Act, Act No. 117 of 1998 read with the Province of the Western Cape: Provincial Gazette 5588 dated 22 September 2000, herein represented by the City Manager, Mr A Ebrahim and Alderman JP Smith.

2. The City is hereby requesting that the Public Protector investigate the Cape Town Minstrel Carnival Association (NPC) ("the Minstrel Association") a non- profit company, registered in terms of the laws of the Republic of South Africa with registration number 1996/012818/08, represented by Richard Stemmet in his capacity as the Chairman of the Minstrel Association and Kevin Momberg as the Chief Executive Officer.

3. The City is requesting that the Minstrel Association be investigated by the Public Protector for misconduct and maladministration as set out herein, to report on that conduct and to take appropriate remedial action. The specific relief prayed for is set out in paragraph 15 below.

Background to the minstrel festival

4. The Kaapse Klopse is a minstrel festival that takes place annually on 2 January (or a date close to the 2nd if the event falls on a holy day). As many as 13000 minstrels take to the streets garbed in bright colours, either carrying colourful umbrellas or playing an array of musical instruments. The custom has been preserved since the mid - 19th Century and people consider the festival a right of renewal that has been shaped by the Cape's history. The events that are associated with Klopse in the festive season include road marches for the Christmas Bands, Cape Malay Choirs and Cape Minstrels.

5. Because each of these disciplines were represented by different Associations and Boards, the Executive Mayor in 2011, appointed retired Judge Kate O'Reagan to mediate between the City and the ten boards and associations. The outcome of the mediation led to a document that was signed by all the Associations and Boards which guided the way forward. During the preparations for the 2013/2014 events, the Cape Town Minstrel Carnival and the Kaapse Klopse Association advised that they felt that it was time to introduce a long-term policy change, in terms whereof the Associations and Boards associated with the Cape Town Minstrel Carnival Events and Competitions, were as a group better aligned and ready to organise the events themselves with the City playing a supporting role like it does with other events rather than a coordinating role as was the case previously. This led to the establishment of the Cape Town Minstrel Carnival Association as the umbrella body.

Presentation to the Special Events Committee and Request for Funding

6. During the negotiations for funding regarding the 2014/2015 financial year (the current year), it is imperative that the Public Protector has regard to the following:

6.1 In a letter dated 9 September 2014, attached hereto marked "PP1", the Minstrel Association via Kevin Momberg, the Chief Executive Officer, stated to the City that the amount of R2 000 000.00 (as discussed more fully below) will not be enough for the event and that the "event organiser tender" amounted to R3 800 000.00 (paragraph 1);

6.2 In paragraph 3 of the same letter it was stated that "the approaching of outside funders at this late stage is a high risk affair which should rather be shelved for the 2015/2016 carnival season". Accordingly, not only was it confirmed by the Minstrel Association in this letter, but the City was also intentionally misled into believing that there were severe time constraints in approaching other funders;

6.3 In the proposal document presented to the Special Events Committee on 8 October 2014 named "Proposal by Carnival and Event Co- ordinating Committee" attached hereto marked annexure "PP2", no mention is made of funding having been received or to be received from external funders.

Therefore, at all material times of negotiation between the Minstrel Association and the City, the City was misled into believing, alternatively, the impression was created that there were severe time constraints in approaching other funders and that the City was the main sponsor of the event.

7. On or about 8 October 2014 and at the City's Special Events Committee, the Minstrel Association's proposal and letter was presented to and subsequently considered. The Special Events Committee recommended that the annual minstrel carnival events and competitions be supported. The Executive Mayor with full delegated authority, agreed to support the Minstrels, Malay Choirs and Christmas Bands, the disbursement of subsequent funds and agreed that the Executive Director: Tourism, Events and Economic Development be authorised to finalise a memorandum of agreement with the Minstrel Association.

The City's Agreement with the Minstrels Association

8. On 17 November 2014 an agreement between the City and the Minstrel Association was concluded. A copy of the agreement is attached hereto,

 mar ked "PP3" .

9. In terms of clause 5 of the agreement, the City duly and properly transferred a payment of R2 000 000.00 in respect of the City's Financial Year 1 July 2014 to 30 June 2015. The amount was to be acknowledged by the Minstrel Association as a once off payment for the applicable financial year.

10. In terms of clause 5.6, the Minstrel Association was to utilise the payment referenced above, for the following event requirements:

Toilets Fencing Security Safety

Medical Services Logistics and Public Relations.

11. In terms of clause 8, the Minstrel Association must for the duration of the agreement adhere to the City's approval processes, all legislation, by-laws, policies, regulations and all legislation applicable to the agreement as well as its own Memorandum of Incorporation and ensure that any and all of the Minstrel Association suppliers and service providers appointed are similarly compliant. Clause 8.4.1.2 of the agreement also stipulates that the Minstrel Association shall ensure that the event be organised and carried out to the best industry standards so that the event is one that the City will be proud to be associated with.

Sequel of developments leading up to the Event

12. On 12 December 2014, acting in terms of clause 5, the City duly and properly transferred the amount of R2 000 000.00 to the Minstrel Association.

13. In terms of the agreement, the Minstrel event was scheduled to commence on 3 January 2015 from 00:30 to 22:00.

14. At a meeting on 23 December 2014, between the City and the Minstrel Association, a request from the Muslim Judicial Council was tabled to have the event moved from the 3rd of January 2015 to another date due to the 3rd of January 2015 coinciding with the traditional Moulood un Nabi or Birth of the Prophet celebrations. It was then agreed between the City and Minstrel Association, that the event would take place on 5 January 2015.

15. On 4 January 2015 the City was informed via the media that the Minstrel Association cancelled the Event scheduled 5 January 2014. The City only received formal notification of such cancellation on 5 January 2015.

16. On 7 January 2015 a meeting was scheduled between the Acting Executive Mayor and the Minstrel Association. At that meeting, the date of 17 January 2015 was discussed and agreed upon to host the Event.

17. On 13 January 2015, a follow-up meeting was conducted between the Executive Mayor and the Minstrel Association. On the same day, the City became aware and was informed that the suppliers contracted by the Minstrel Association have not been paid, in particular Pantsula Fencing and Sanitech, for the provision of toilets and fencing, respectively. The amount outstanding totalled R264 351.60.

18. It is imperative to note that despite the payment of R2 000 000.00, the above amount was still outstanding. Also, in terms of the Safety at Sports and Recreational Events Act, Act No. 2 of 2010, the event would have been non- compliant without the proper supply of fencing and toilets.

19. The suppliers only confirmed on 14 January 2015 and the event permit was issued thereafter.

12. On 17 January 2015, the event took place.

Information brought to the City's attention regarding external funding

13. Notwithstanding the funding of R2 000 000.00 received from the City, it came to the attention of the City, via media reports that the Minstrel Association has received significant funding from the National Lotteries Board. The total

amount received by the Minstrel Association amounted to R57 110 000.00 of which R30 430 000.00 was specifically assigned to the event alone. Attached hereto, marked "PP4" is a copy of the confirmation of funding provided by the National Lotteries Board.

14. It is therefore unclear as to how the R30 430 000.00, allocated specifically by the National Lotteries Board for the event, was utilised, as the public funding provided by the City compensated for all the logistics and transport costs for the event.

Request for Investigation

15. In light of the above, the City hereby requests the Public Protector to investigate the Minstrel Association based on the following:

15.1 The City is concerned that the Minstrel Association misrepresented their financial position to the City in respect of the event as outlined in paragraph 6 above;

15.2 The City is concerned that the Minstrel Association did not properly utilise the public funds appropriated by the City for the event, alternatively, that the Minstrel Association cannot account for the R2 000 000.00 in public funds;

15.3 The City is concerned and hereby request an investigation into Minstrel Association's appropriation of the R57 110 000.00 received from the National Lotteries Board; and

15.4 The Minstrel Association be directed to present and account for the appropriation of the R57 110 000.00 from which R30 430 000.00 was specifically appropriated to the event, as received by the National Lotteries Board.

***

Statement issued by Alderman JP Smith, Mayoral Committee Member for Safety and Security, City of Cape Town, February 16 2015

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