Where did the money go? THE DA DEMANDS ANSWERS

He further indicated that there was evidence that other beneficiaries were “double-dipping” from two or more government organisations.

“While the Northern Cape Tourism Authority has identified this as a threat to the finite resources and support that the provincial administration can provide, its very own mother department is yet to deal with the matter decisively,” Babuseng said.

“An events management company received R44 000 from the department for a heritage event in September 2016 for which the Sol Plaatje Local Municipality also budgeted R560 000. An amount of R242 430.96 was reported to have been spent by July. Additional funding was also allocated by the Northern Cape Tourism Authority.”

The Diamonds and Dorings Festival was another example of “double-dipping” listed by the MPL, who pointed out that the event’s organiser received funding of R300 000 from the department to run last year’s event along with funding of approximately R4.9 million from the national and provincial Sports departments, the Sol Plaatje Local Municipality and the Frances Baard District Municipality.

“It is also interesting to note that the department transferred an additional R1 million to the events company in this financial year, considering that the festival had a reported shortfall of R1 million last year.

“Of equal concern is that, year after year, funding is paid to well-established events or enterprises, such as the Gariep Kunstefees, which has received R600 000 over the past three financial years. If the same funding needs to be paid to the same entrepreneurs for the same reasons, the EGDF itself becomes nothing more than a different type of grant and no longer empowers entrepreneurs.”

The finances for the Flamingo Park Horserace were also scrutinised and proved a bone of contention, with Babuseng saying that criminal charges against the organisers were eminent.

“The payment of R1.6 million to a guest house and R2 million to an events management company require deep investigation. In both cases, there are allegations that a portion of these funds were channelled back to a former top official at the department.

“The events management company is also registered to someone who works at the Local Economic Development section of the local municipality.”

Babuseng said that the gambling board also needed to be brought to book for its part in the horse racing event.

“The department, which must also regulate the gambling industry, in fact assisted the organiser to host a horse racing event without the necessary licences. Is this not the equivalent of a health department giving alcohol to pregnant women?”

However, Dedat spokesperson Zandisile Luphahla said that the DA had posed the same questions at a portfolio committee meeting last month, but left before hearing the answers.

The Dedat spokesperson further directed the opposition party to the relevant authorities should it require additional information.

“All the issues were responded to by senior managers, which were led by the acting HOD, Sam Mabilo,” Luphahla said.

“We are now shocked that after he (Babuseng) left the meeting, without seeking permission from the chairperson of the session, he releases a statement on issues which were already addressed.”

“The MEC has indicated a number of times that, if anyone, including Babuseng, has information on fraudulent or corrupt activities he must take it up with relevant authorities.”

Spokesperson for the Northern Cape Legislature, Mpho Masina, added that a statement from her office, pertaining to all the annual reports, was being completed and that Scopa chair, Alexander Beukes, was aware that the DA intended to send a written complaint, though none had been received yet.

Meanwhile, spokesperson for the Gariep Festival, Bernice Versluis, said that, as a non-profit company, they were reliant on sponsorships and grants for the annual event.

“We apply for sponsorships/ grants from various departments and businesses, many a time without success,” she said.

“We run on an extremely tight budget as we barely get a total of R2 000 000 in sponsorships while the festival costs more than R5 600 000.

“It is a fine balancing trick and very good financial management is imperative.

“We meet all the objectives of being an economic boost to the city and Province and promoting tourism; and we can give account of every rand as we are audited by PwC annually. We apply for funding and send out post-event reports.”

The Sol Plaatje Municipality failed to comment.