Leaked report exposes abuse of lottery income paid out to minstrel team
Leaked report exposes abuse of lottery income paid out to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Commission to your Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't utilize the R5-million allocated to get or make a museum.
In addition they observed the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA employed cash from your Lottery to acquire workshop equipment from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to build a museum to celebrate the city’s wealthy minstrel historical past went astray. The museum was under no circumstances produced.
The small print from the abuse of many rands of Lottery money for just a museum that never was are disclosed in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery cash allocated to the CTMCA among 2003 and 2017.
The initial Portion of the investigation, by law company Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which involved funding to the museum. The accepted budget for your museum was in excess of R12.eight-million, with R5-million of that allocated for any creating to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing for your museum and whether or not the museum “really existed”.
The firm was also instructed to investigate
the purchase with Lottery resources of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
many machines “ordered for your manufacturing of the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of directors in the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed substantial reporting by GroundUp concerning the countless rands of Lottery funding allotted on the CTMCA (see below, listed here and here) and the best way the funds possibly helped finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.
The setting up on the appropriate was the intended web page of your minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Image: Raymond Joseph
In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - including the museum - involving 2012 and 2015. All a few tasks had been concluded, she told MPs.
Even so the investigators discovered no proof that a museum had at any time existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of the meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, plus a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not ready” to confirm if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved since they could now not manage the rent of R100,000 a month. He said the CTMCA had procured house for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is in a peri-city area much from the city.
Because of this, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which are within an industrial location, the investigators mentioned they doubted no matter whether a correct museum existed there. Photos attached into the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed for the wall, exhibited on tables and distribute out on the floor, with no clarification.
“You will find a negligible level of objects for the museum [that] on no account represent the greater than 100-calendar year record of your Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum does not glimpse to get open to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The situation from the museum to an alternate location with no notifying the NLC.
The Schaapkraal property, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to maneuver in the rented Crete Road premises since it had operate up a R4-million debt with town of Cape City and was worried its machines could well be hooked up.
“Due to authorized battles along with the debts, the organisation had to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the residence of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director on the CTMCA, advised them which the two buses acquired with lottery resources had been stored inside of a top secret spot “concealed with the Sheriff”. Though the investigators mentioned they have been unable to substantiate that any buses experienced ever been purchased.
Stemmet also verified that the buses were hidden to stop them staying seized. But in the event the investigators requested to become taken to your spot exactly where the buses were being stored, he explained to them that “the proprietor of The key area wasn't available to open up the premises for us”.
“The CTMCA couldn't provide evidence of payment for 2 vehicles that it allegedly obtained with grant dollars,” the investigators claimed.
Soeker also told them the Schaapkraal home were bought because of the debt.
“Mr Soeker described that In accordance with his comprehension, due to financial debt owed to the City of Cape City, the CTMCA made the decision it would be most effective to market their [Schaapkraal] assets … and also to also to cover the assets of the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for protection and stability, has previously informed GroundUp that the CTMCA “threw income absent” on litigation with town.
“Annually like clockwork, as we strategy the tip of your year, the CTMCA picks a legal fight with town, over permits or something else. We in no way initiate it. They continue to keep throwing income away on vexatious litigation which they shed and possess expenditures awarded towards them. This really is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of many of the admin, funds and managing หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators claimed they were unable to Speak to Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “uncovered several devices, some in superior condition, some in bad problem and many that appeared rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility exactly where “instruments and several machinery” have been retained.
“We requested him to consider us to the power but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, if not all, of your objects look like products which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing costs for this elimination.
Based on the remaining development report submitted to the NLC with the CTMCA, the equipment was ordered from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter have been administrators at time.
The investigators uncovered this “alarming”.
“From the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the exact same address on which the museum was intended to be constructed and/or converted,” they reported.
An audit by accountants Kopano Included, attached into the investigative report, recorded that the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one among the directors.
As outlined by Dabishi Nthambeleni, the corporation has compensated R1.2-million being a deposit, that means R6.9-million is still owed, though there's no payment day set for when this should be compensated.
The Kopano audit along with the shut connection amongst the companies “point out to us that there is ‘foul Participate in’ associated with the acquisition of the machinery with the museum workshop”, the investigators stated from the report.
“We discover that it's really probable that CTMCA employed the funding on the NLC to ‘refund’ amongst its main administrators with the assets at the next overpriced rate than the particular rate and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been used.
“In point of fact, an in depth report on how the funding in the NLC was employed, would be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not conducted a web site check out in advance of approving the grant. But this wasn't common exercise at time and so they identified no proof of negligence by NLC workers.
At some time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was able to receive a next tranche of funding without having to deliver proof that it had utilised the first tranche for its meant reason.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – less than its prior administration – selected to suppress it, mainly because it had accomplished Using the preceding reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and asked for email addresses to deliver the queries by e-mail way too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph