Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated 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 right into a R27.three-million grant because of the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has found no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed funds with the Lottery to buy workshop equipment from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape Town Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was never produced.
The details from the abuse of numerous rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery cash allotted towards the CTMCA concerning 2003 and 2017.
The very first Section of the investigation, by regulation business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for your museum. The accredited funds for your museum was greater than R12.eight-million, with R5-million of that allotted for any making to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making with the museum and whether the museum “essentially existed”.
The company was also instructed to analyze
the purchase with Lottery resources of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different devices “ordered with the producing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At 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 spouse Zainonesa and daughter Raziah continued as two of several administrators with the organisation. Stemmet was reappointed to be a director in May perhaps 2021.
The investigation adopted comprehensive reporting by GroundUp about the many rands of Lottery funding allotted to your CTMCA (see in this article, below and right here) and the way the cash almost certainly served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The developing on the best was the supposed web site with the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph
In response to some Parliamentary query, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been accomplished, she instructed MPs.
But the investigators identified no proof that a museum had at any time existed.
Initially the museum was on account of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, plus a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved since they could not afford to pay for the hire of R100,000 per month. He stated the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same price tag. Schaapkraal is in a very peri-city spot significantly from the city.
Because of this, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after browsing the premises, that happen to be within an industrial spot, the investigators stated they doubted whether or not an appropriate museum existed there. Pictures connected to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having explanation.
“There's a nominal number of merchandise within the museum [that] on no account represent the more than a hundred-12 months historical past in the Cape Town Carnival, the investigators said, introducing that there was “no signage outdoors the premises indicating that they housed a museum and … commonly, the museum isn't going to appear to generally be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternate locale without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its tools will be attached.
“As a result of legal battles and the debts, the organisation experienced to move its assets from five Crete Road to steer clear of the sheriff from attaching the home of the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery cash were stored in a very magic formula site “concealed in the Sheriff”. Although the investigators stated they ended up unable to confirm that any buses experienced ever been bought.
Stemmet also verified which the buses had been hidden to stop them becoming seized. But when the investigators asked for being taken to your place exactly where the buses were being saved, he advised them that “the proprietor of The key spot was not available to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 cars that it allegedly obtained with grant cash,” the investigators noted.
Soeker also informed them the Schaapkraal home were marketed due to personal debt.
“Mr Soeker explained that As outlined by his knowledge, a result of the debt owed to town of Cape City, the CTMCA determined It will be very best to promote their [Schaapkraal] house … also to also to hide the property in the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and security, has Beforehand told GroundUp that the CTMCA “threw revenue absent” on litigation with the City.
“Each year like clockwork, as we strategy the end of your 12 months, the CTMCA picks a legal fight with town, about permits or something else. We by no means initiate it. They keep throwing funds away on vexatious litigation which they shed and have prices awarded from them. This really is totally self-inflicted,” he mentioned.
Soeker instructed the Dabishi Nthambeleni investigators that the primary purpose players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, finances and managing ตรวจ หวย the CTMCA.” The investigators said they had been not able to Get hold of Momberg.
Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “identified quite a few devices, some in excellent situation, some in poor condition plus some that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility exactly where “devices and some machinery” were held.
“We questioned him to get us to the power but he was evasive to our ask for.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, in the goods look like equipment that was illegally removed from the CTMCA’s earlier premises. Stemmet is struggling with rates for this removal.
According to the final development report submitted into the NLC via the CTMCA, the equipment was acquired from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being administrators at the time.
The investigators uncovered this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape City, exactly the same tackle on which the museum was meant to be constructed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the directors.
Based on Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, meaning R6.nine-million is still owed, nevertheless there is not any payment date established for when this has to be compensated.
The Kopano audit as well as the shut hyperlink involving the companies “show to us that there's ‘foul Participate in’ associated with the purchase with the equipment of the museum workshop”, the investigators mentioned while in the report.
“We discover that it's hugely possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its main administrators for that residence at an increased overpriced fee than the actual price and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to the CTMCA had been spent.
“The truth is, a detailed report on how the funding on the NLC was utilized, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not done a site visit prior to approving the grant. But this was not standard observe at enough time and so they identified no proof of carelessness by NLC staff.
At the time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to provide proof that it had made use of the very first tranche for its meant intent.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act about the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced carried out While using the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to deliver the inquiries by e mail way too. But no reaction had been obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph