Leaked report exposes abuse of lottery cash paid out to minstrel group
Leaked report exposes abuse of lottery cash paid out to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has identified no proof that a museum at any time existed.
The investigators located that the CTMCA did not utilize the R5-million allocated to buy or produce a museum.
Additionally they located the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA applied money from your Lottery to get workshop gear from one among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Fee (NLC) to arrange a museum to rejoice the city’s loaded minstrel record went astray. The museum was never ever designed.
The small print of the abuse of a lot of rands of Lottery funds for just a museum that in no way was are discovered within an investigative report commissioned with the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery money allotted towards the CTMCA involving 2003 and 2017.
The very first Element of the investigation, by legislation company Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding to the museum. The accredited budget for the museum was over R12.8-million, with R5-million of that allocated for any making to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making for the museum and whether or not the museum “truly existed”.
The company was also instructed to analyze
the purchase with Lottery money of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
many machines “procured for your production in the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of directors from the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation followed extensive reporting by GroundUp regarding the numerous rands of Lottery funding allotted to the CTMCA (see below, right here and here) and just how the funds likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The creating on the correct was the meant internet site in the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All a few jobs were accomplished, she advised MPs.
Though the investigators found no proof that a museum experienced ever existed.
At the beginning the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp with the supposed Wetton museum reveals a coffee shop with some musical devices and minstrel costumes and collages of pics haphazardly hung over the walls, and also a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved mainly because they could no more afford the hire of R100,000 per month. He reported the CTMCA had obtained home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been sold for a similar cost. Schaapkraal is within a peri-urban area significantly from the city.
Consequently, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after viewing the premises, that are within an industrial area, the investigators claimed they doubted whether an appropriate museum existed there. Images connected to your report show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without any rationalization.
“You will find a minimal amount of objects at the museum [that] on no account characterize the a lot more than 100-12 months historical past with the Cape Town Carnival, the investigators reported, adding that there was “no signage outdoors the premises indicating they housed a museum and … usually, the museum doesn't appear to become open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving the location of your museum to an alternate location with out notifying the NLC.
The Schaapkraal assets, on which no museum was ever designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from the rented Crete Road premises since it had operate up a R4-million financial debt with town of Cape City and was worried its tools might be hooked up.
“Due to lawful battles and also the debts, the organisation had to maneuver its home from 5 Crete Street to stay away from the sheriff from attaching the house of your organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director in the CTMCA, informed them which the two buses purchased with lottery funds were being stored inside of a secret location “hidden from your Sheriff”. Although the investigators claimed they ended up unable to verify that any buses had ever been acquired.
Stemmet also confirmed that the buses had been hidden to halt them staying seized. But once the investigators questioned for being taken towards the area exactly where the buses ended up saved, he informed them that “the proprietor of The trick spot wasn't accessible to open the premises for us”.
“The CTMCA could not present evidence of payment for 2 motor vehicles that it allegedly procured with grant revenue,” the investigators reported.
Soeker also explained to them the Schaapkraal property were sold because of the debt.
“Mr Soeker stated that In keeping with his being familiar with, mainly because of the credit card debt owed to the City of Cape Town, the CTMCA decided It could be greatest to provide their [Schaapkraal] house … also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and protection, has previously informed GroundUp that the CTMCA “threw funds away” on litigation with the City.
“On a yearly basis like clockwork, as we tactic the top from the year, the CTMCA picks a legal struggle with the City, over permits or another thing. We by no means initiate it. They preserve throwing revenue absent on vexatious litigation which they drop and have costs awarded against them. This is fully self-inflicted,” he explained.
Soeker advised the Dabishi Nthambeleni investigators that the primary purpose players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for all the admin, finances and operating ตรวจ หวย the CTMCA.” The investigators stated they had been not able to contact Momberg.
Hats
Through their “investigation in loco” for the Primrose Park premises, the investigators “found a lot of machines, some in very good ailment, some in negative issue and many that appeared rusty and extremely old”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “devices plus some equipment” ended up retained.
“We questioned him to acquire us to the ability but he was evasive to our request.”
Depending on photographs and invoices in GroundUp’s possession, some, Otherwise all, of your goods appear to be devices which was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with costs for this elimination.
In accordance with the remaining development report submitted into the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were directors at the time.
The investigators discovered this “alarming”.
“From the CIPC search of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the business is five Crete Road, Wetton, Cape City, the exact same address on which the museum was intended to be crafted and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, attached to your investigative report, recorded that the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the directors.
In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million to be a deposit, meaning R6.9-million remains owed, although there is absolutely no payment date established for when this needs to be paid.
The Kopano audit and the near backlink amongst the companies “suggest to us that there is ‘foul play’ linked to the purchase with the machinery on the museum workshop”, the investigators said inside the report.
“We discover that it's highly probable that CTMCA employed the funding on the NLC to ‘refund’ one of its primary directors to the residence at the next overpriced level than the particular rate and price of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to your CTMCA were put in.
“In fact, an in depth report on how the funding in the NLC was employed, would be unachievable because the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts invested on each item it requested funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not performed a web site check out right before approving the grant. But this wasn't standard practice at enough time plus they uncovered no proof of negligence by NLC staff.
At time, the NLC’s principles did not demand funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was able to get a second tranche of funding without having to deliver proof that it experienced employed the very first tranche for its supposed goal.
Next the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these as well as other issues.
Dabishi Nthambeleni advisable that
the NLC decrease any future funding programs with the CTMCA;
the CTMCA and any users who were involved in the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated resources.
But, rather then act over the report’s suggestions, the NLC – beneath its earlier administration – selected to suppress it, as it experienced carried out with the former reviews into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to deliver the queries by e mail much too. But no reaction were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph