Financial Scandal Unraveled: Cape Town Minstrel Carnival Association's Misuse of Lottery Funds

A leaked forensic report has exposed severe financial mismanagement within the Cape Town Minstrel Carnival Association (CTMCA), throwing a spotlight on the abuse of millions of South African rand that were earmarked for a museum to celebrate Cape Town's rich minstrel heritage, a project that never materialized.

According to the report initiated by the National Lotteries Commission (NLC) and conducted by law firm Dabishi Nthambeleni, the CTMCA misused more than R64-million in Lottery funds granted between 2003 and 2017. This includes a R27.3 million grant awarded in 2014 specifically for establishing a minstrel museum. From this grant, R12.8 million was allocated for the museum’s setup, including R5 million for acquiring a building.

The investigation, which spanned from September 2020 to January 2021, uncovered several financial discrepancies and failed responsibilities. Despite funds being disbursed for property and equipment, such as two buses amounting to R2.4 million and machinery for costume manufacturing valued at R5.4 million, the proposed museum's location changed multiple times due to various cited reasons including rental issues and rezoning failures.

Initially intended to be situated at Crete Road, Wetton, the museum allegedly operated briefly, showcasing minimal displays irrelevant to the extensive history of the Cape Town Carnival. Later, it was moved to Schaapkraal and finally to an industrial area in Primrose Park in February 2021. The latter location, by investigators' accounts, lacked any legitimate setup resembling a museum.

The leadership's credibility faltered particularly with Richard "Pot" Stemmet, a convicted criminal, who was deeply ingrained in the CTMCA's operations. Stemmet’s involvement in the CTMCA spanned from 1996 until 2016, and he was reappointed in 2021. His familial ties to the board added layers of complexity, as his wife Zainonesa and daughter Raziah were also involved in the association’s governance.

Further investigatory findings showed mishandling where equipment and assets were kept in undisclosed locations to avoid legal seizures. There was also a notable conflict of interest in the purchase of machinery from Martin-Conne Milliners, a firm where Stemmet and his family held significant roles.

Despite the severe allegations and findings, the NLC initially failed to act on the recommendations from Dabishi Nthambeleni, which included barring the CTMCA from future funding and initiating recovery of misappropriated funds. The report describes a system crippled by inadequate oversight and insufficient verification processes which allowed such misuse to persist unnoticed for years.

The scandal not only highlights significant gaps in the governance of public funds but also deeply undermines the cultural heritage initiatives that the Lottery grants aimed to support. This revelation has sparked a crucial discourse on accountability and the protective measures necessary to safeguard the cultural and historical preservation efforts in South Africa.