Leaked report exposes abuse of lottery cash compensated to minstrel team
Leaked report exposes abuse of lottery cash compensated to minstrel team
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Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no evidence that a museum ever existed.
The investigators located which the CTMCA didn't make use of the R5-million allotted to buy or produce a museum.
In addition they located the CTMCA only purchased land value R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilised cash from your Lottery to invest in workshop products from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to create a museum to rejoice the town’s abundant minstrel historical past went astray. The museum was never ever made.
The main points with the abuse of millions of rands of Lottery funds for a museum that by no means was are disclosed in an investigative report commissioned with the NLC in 2021.
The museum grant was Section of greater than R64-million in Lottery funds allocated towards the CTMCA amongst 2003 and 2017.
The 1st A part of the investigation, by legislation business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding for your museum. The permitted spending budget for that museum was in excess of R12.8-million, with R5-million of that allocated for the building to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing to the museum and if the museum “essentially existed”.
The business was also instructed to analyze
the purchase with Lottery funds of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
various equipment “acquired for your producing with the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators in the organisation. Stemmet was reappointed to be a director in May perhaps 2021.
The investigation followed comprehensive reporting by GroundUp regarding the many rands of Lottery funding allotted for the CTMCA (see in this article, right here and below) and the way in which the money likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the intended website of your minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In response into a Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All a few tasks were completed, she explained to MPs.
Even so the investigators found no proof that a museum had ever existed.
To start with the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp in the supposed Wetton museum exhibits a coffee store with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it was “not ready” to confirm if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could no more manage the rent of R100,000 per month. He explained the CTMCA had purchased assets for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were bought for the same price. Schaapkraal is in a very peri-city place much from town.
Due to this fact, the museum had been moved to a whole new location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following traveling to the premises, that are in an industrial region, the investigators explained they doubted whether or not a proper museum existed there. Images connected to your report clearly show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, exhibited on tables and distribute out on the floor, without any explanation.
“There's a minimum degree of things with the museum [that] on no account signify the over 100-calendar year background with the Cape Town Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … frequently, the museum won't search for being open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by moving The placement with the museum to an alternate place with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time built. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to maneuver with the rented Crete Street premises because it experienced run up a R4-million debt with town of Cape Town and was afraid its equipment can be hooked up.
“Mainly because of the legal battles plus the debts, the organisation experienced to maneuver its home from 5 Crete Street to avoid the sheriff from attaching the house of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director in the CTMCA, instructed them which the two buses purchased with lottery money have been stored inside a magic formula place “concealed with the Sheriff”. Though the investigators claimed they have been not able to verify that any buses experienced ever been purchased.
Stemmet also verified that the buses had been hidden to prevent them becoming seized. But if the investigators questioned to be taken for the position where by the buses were being saved, he advised them that “the owner of The trick site was not available to open up the premises for us”.
“The CTMCA could not supply evidence of payment for two motor vehicles that it allegedly purchased with grant money,” the investigators claimed.
Soeker also explained to them the Schaapkraal house had been bought due to credit card debt.
“Mr Soeker discussed that Based on his comprehending, because of the personal debt owed to the City of Cape Town, the CTMCA determined It could be very best to sell their [Schaapkraal] house … and also to also to hide the property on the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and security, has Beforehand explained to GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Every year like clockwork, as we solution the tip of the 12 months, the CTMCA picks a legal combat with the City, about permits or something else. We in no way initiate it. They retain throwing dollars away on vexatious litigation they eliminate and also have fees awarded towards them. This really is solely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the primary part players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, finances and jogging หวย ไทยรัฐ the CTMCA.” The investigators said they were unable to contact Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered various machines, some in fantastic situation, some in terrible situation and several that appeared rusty and intensely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments and some machinery” were stored.
“We asked him to consider us to the facility but he was evasive to our request.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this removing.
Based on the remaining progress report submitted to the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter have been administrators at some time.
The investigators discovered this “alarming”.
“With the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Road, Wetton, Cape City, a similar handle on which the museum was meant to be created and/or converted,” they noted.
An audit by accountants Kopano Included, connected for the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million like a deposit, this means R6.9-million continues to be owed, while there isn't any payment date set for when this have to be compensated.
The Kopano audit and the close hyperlink among the companies “show to us that there is ‘foul Perform’ associated with the purchase of your equipment on the museum workshop”, the investigators explained inside the report.
“We find that it's very possible that CTMCA applied the funding in the NLC to ‘refund’ certainly one of its main directors for the house at a higher overpriced amount than the actual price tag and price of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were spent.
“Actually, a detailed report on how the funding on the NLC was made use of, would be unattainable since the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on Each individual product it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC experienced not executed a web site go to right before approving the grant. But this was not standard follow at the time and they uncovered no proof of negligence by NLC employees.
At some time, the NLC’s policies didn't need funded organisations to submit proof of payment with interim stories, they identified. This meant that the CTMCA was capable to get a next tranche of funding without the need to supply evidence that it experienced used the primary tranche for its supposed intent.
Subsequent the appointment of a whole new board, commissioner and senior government staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated money.
But, rather than act about the report’s tips, the NLC – below its former administration – chose to suppress it, because it experienced done Together with the former reviews into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and asked for e mail addresses to mail the concerns by e-mail also. But no reaction had been acquired at the time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph