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Local News
29 December 2024

Cape Town Governance Crisis Exposed Amid Disasters

Investigation finds Lottery funds mismanaged as fires ravage informal settlements

A troubling investigation has revealed deep-seated issues surrounding the Cape Town Minstrel Carnival Association's (CTMCA) management of R27.3 million granted by the National Lotteries Commission (NLC) for the establishment of a minstrels museum, which never materialized. The investigation, conducted by Dabishi Nthambeleni, found no evidence supporting the existence of the museum, leading to serious questions about financial oversight and accountability.

According to the report, released following extensive media scrutiny, the CTMCA received significant Lottery funding—more than R64 million—between 2003 and 2017. Out of this, R12.8 million was earmarked for the museum operation, with R5 million intended for actual construction. Instead of using these funds as designated, the CTMCA misappropriated large sums, including purchasing workshop equipment from one of its own directors, Richard Stemmet, raising ethical questions about the organization’s management.

The investigation highlighted serious deficiencies, including the fact the CTMCA had only purchased land worth R1.7 million after failing to secure the funds necessary for building the museum. Further, the NLC, which failed to conduct thorough oversight, has since tightened its regulations, responding to criticisms of its historical lack of scrutiny.

While evident mismanagement of Lottery funds raises alarm bells, another pressing issue looms over Cape Town—its inadequate response to residential fires, particularly affecting its informal settlements. Fires during December have ravaged the lives of over 900 residents, prompting City officials to seek emergency funding directly from the national government for more effective disaster relief.

Carl Pophaim, the city’s human settlements committee member, voiced the urgency of needing the Emergency Housing Grant devolved to local authorities to facilitate faster assistance for the victims. “I am appealing to President Ramaphosa and Minister Simelane to urgently devolve the Emergency Housing Grant to assist fire-affected residents as quickly as possible,” he stated, emphasizing the significance of local control over disaster response.

The homelessness crisis triggered by fires, particularly the one impacting Masiphumelele—where over 1,000 homes were consumed just this month—stands as proof of the systemic failures plaguing emergency management. The City has repeatedly failed to meet the 24-hour disaster assistance guideline, with delays attributed to bureaucratic holdups, especially problematic during the holiday season.

Tawanta Pawantiwa, who lost her home, criticized the lack of resources: “If the fund was managed by local government, it would help us greatly. We end up sleeping in community halls, and the few items we manage to save often get stolen or lost.”

Human Settlements Minister Thembi Simelane admitted to these shortcomings after visiting victims, attributing delays to the festive period. “We need to formalise our informal settlements and learn from what we have been doing,” she commented, acknowledging the need for both immediate relief and long-term disaster preparedness improvements to prevent future tragedies.

The reality of Cape Town's official response starkly contrasts the city’s image as one of South Africa's tourism gems. It houses 146 informal settlements characterized by resource scarcity and systemic neglect. Shocking statistics reveal over 1,200 fires damaging homes annually, with inadequate responses illustrating chronic mismanagement and poorly aligned budget priorities.

Despite outsized budgets, such as R76.4 billion earmarked for various city projects, many of those living on the margins continue to find themselves frustrated and abandoned. Funds intended for fire safety or urban development have historically bypassed these communities, compounding their vulnerability to disasters like the recent outbreaks of fires.

Revealing little evidence of planned structural support or consistent budget tracking, advocacy groups have long flagged these governance failures. Over the recent years, funding directed toward infrastructure has focused more on policing and surveillance than on what would improve the living conditions of residents, like firebreaks and reliable access roads—factors integral to ensuring community resilience.

It is clear the City of Cape Town can no longer afford to treat its budget as merely numbers. The crisis facing Cape Town’s informal settlements necessitates comprehensive, proactive approaches addressing systemic issues, asset management, and infrastructural development. Only through committed advocacy and action can the City stem the tide of disaster, ensuring all Capetonians—regardless of background—are valued equally.

For the future, intervention strategies must emerge from logical governance practices grounded in equity. The recent struggle with Lottery funds must highlight the urgency of reforming oversight and management practices. It may well be the moment for Cape Town to acknowledge and address these glaring inequalities and chart a path toward sustainability for all its residents.