Leaked report exposes abuse of lottery funds paid out to minstrel group
Leaked report exposes abuse of lottery funds paid out to minstrel group
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Minstrels perform in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Commission for the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has found no proof that a museum ever existed.
The investigators found the CTMCA did not utilize the R5-million allocated to acquire or create a museum.
In addition they discovered the CTMCA only purchased land well worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilized cash with the Lottery to get workshop machines from one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate town’s prosperous minstrel record went astray. The museum was never ever established.
The details on the abuse of numerous rands of Lottery money for a museum that under no circumstances was are disclosed in an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery money allocated into the CTMCA between 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 centered on a R27.3-million grant into the CTMCA in 2014, which integrated funding for that museum. The authorized finances with the museum was more than R12.eight-million, with R5-million of that allotted for your making to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the developing for the museum and if the museum “in fact existed”.
The company was also instructed to investigate
the purchase with Lottery cash of two autos – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
different machines “bought with the manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors in the organisation. Stemmet was reappointed for a director in May perhaps 2021.
The investigation adopted substantial reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allocated for the CTMCA (see in this article, in this article and below) and the way the cash most likely assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The setting up on the appropriate was the meant website with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All three tasks had been accomplished, she explained to MPs.
However the investigators identified no proof that a museum experienced ever existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of your intended Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung within the partitions, along with a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni stated it was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved since they could no longer find the money for the lease of R100,000 a month. He explained the CTMCA experienced obtained house for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been sold for a similar selling price. Schaapkraal is in a peri-urban area considerably from the town.
Due to this fact, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, that happen to be within an industrial area, the investigators mentioned they doubted no matter whether a proper museum existed there. Pictures connected into the report show a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, without any explanation.
“There is a minimum degree of goods at the museum [that] on no account stand for the more than a hundred-12 months historical past of the Cape Town Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating that they housed a museum and … normally, the museum does not seem to be open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by shifting The situation of the museum to another locale with out notifying the NLC.
The Schaapkraal home, on which no museum was ever created. Photo: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA experienced to move from the rented Crete Street premises mainly because it had operate up a R4-million debt with town of Cape Town and was scared its tools might be connected.
“Due to authorized battles plus the debts, the organisation had to maneuver its house from five Crete Road to stay away from the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director of your CTMCA, instructed them which the two buses acquired with lottery resources were saved in a magic formula locale “hidden with the Sheriff”. But the investigators mentioned they were being unable to substantiate that any buses experienced at any time been bought.
Stemmet also confirmed which the buses were hidden to prevent them currently being seized. But when the investigators requested to become taken into the position where by the buses were being stored, he explained to them that “the operator of The trick area wasn't accessible to open up the premises for us”.
“The CTMCA could not provide evidence of payment for 2 motor vehicles that it allegedly bought with grant income,” the investigators claimed.
Soeker also told them the Schaapkraal property had been offered as a result of personal debt.
“Mr Soeker explained that As outlined by his being familiar with, because of the debt owed to town of Cape City, the CTMCA resolved It will be best to sell their [Schaapkraal] residence … and to also to cover the property of the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for basic safety and safety, has Beforehand told GroundUp the CTMCA “threw money away” on litigation with the town.
“Every year like clockwork, as we strategy the top from the yr, the CTMCA picks a legal combat with the town, around permits or something else. We never ever initiate it. They retain throwing income absent on vexatious litigation that they drop and have expenses awarded in opposition to them. This is often entirely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the main job players on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for all the admin, finances and running ตัว หวย the CTMCA.” The investigators mentioned they were unable to contact Momberg.
Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “discovered numerous machines, some in very good affliction, some in lousy situation and several that seemed rusty and very aged”. Stemmet advised the investigators that there was also an off-internet site storage facility wherever “devices and several machinery” had been stored.
“We questioned him to take us to the power but he was evasive to our request.”
Based upon pics and invoices in GroundUp’s possession, some, if not all, with the things seem like tools which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.
Based on the remaining progress report submitted for the NLC by the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter ended up administrators at the time.
The investigators discovered this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Highway, Wetton, Cape City, exactly the same address on which the museum was intended to be created and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded that the CTMCA was in the whole process of buying “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the administrators.
In accordance with Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, meaning R6.9-million is still owed, however there isn't any payment date established for when this must be compensated.
The Kopano audit as well as shut connection between the businesses “indicate to us that there's ‘foul play’ linked to the purchase from the machinery of your museum workshop”, the investigators explained in the report.
“We find that it is really probable that CTMCA utilised the funding of the NLC to ‘refund’ considered one of its primary administrators for your residence at a higher overpriced charge than the actual rate and value of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA had been expended.
“The truth is, a detailed report on how the funding in the NLC was utilized, could be extremely hard as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts expended on Each individual product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not done a web site visit just before approving the grant. But this was not typical practice at the time and so they discovered no evidence of carelessness by NLC workforce.
At enough time, the NLC’s procedures didn't have to have funded organisations to submit evidence of payment with interim reports, they identified. This meant which the CTMCA was able to get a second tranche of funding without the need to give evidence that it had utilized the first tranche for its meant objective.
Pursuing the appointment of a brand new board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.
Dabishi Nthambeleni encouraged that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as an alternative to act around the report’s tips, the NLC – below its past administration – chose to suppress it, because it experienced carried out Along with the earlier experiences into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and requested for electronic mail addresses to send the issues by email far too. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph