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 accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has found no proof that a museum ever existed.
The investigators found the CTMCA did not use the R5-million allocated to acquire or create a museum.
In addition they discovered that the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They discovered the CTMCA applied cash within the Lottery to acquire workshop products from one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape City Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Fee (NLC) to arrange a museum to celebrate the town’s rich minstrel record went astray. The museum was by no means produced.
The small print from the abuse of many rands of Lottery cash for any museum that hardly ever was are uncovered in an investigative report commissioned because of the NLC in 2021.
The museum grant was part of greater than R64-million in Lottery cash allocated for the CTMCA in between 2003 and 2017.
The primary Portion of the investigation, by regulation agency Dabishi Nthambeleni, was performed concerning 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 approved finances for the museum was in excess of R12.8-million, with R5-million of that allotted to get a setting up to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for that museum and whether or not the museum “really existed”.
The business was also instructed to investigate
the purchase with Lottery funds of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
different devices “ordered for the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various administrators in the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted substantial reporting by GroundUp with regard to the countless rands of Lottery funding allocated into the CTMCA (see right here, listed here and right here) and just how the cash most likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The constructing on the right was the meant web-site on the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to some Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - including the museum - among 2012 and 2015. All 3 assignments had been completed, she told MPs.
Even so the investigators observed no proof that a museum had ever existed.
In the beginning the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo attained by GroundUp of the meant Wetton museum exhibits a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung about the partitions, and also a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved because they could now not afford the rent of R100,000 per month. He said the CTMCA had acquired assets for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for a similar cost. Schaapkraal is within a peri-city area considerably from the town.
Therefore, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after checking out the premises, which are in an industrial location, the investigators said they doubted irrespective of whether a proper museum existed there. Photos connected into the report demonstrate a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the ground, without having rationalization.
“There's a minimal amount of items for the museum [that] under no circumstances depict the greater than one hundred-year heritage with the Cape City Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating they housed a museum and … generally, the museum would not seem to be open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by relocating The placement of your museum to another site without notifying the NLC.
The Schaapkraal residence, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver through the rented Crete Street premises as it had run up a R4-million financial debt with town of Cape Town and was worried its machines might be attached.
“Mainly because of the authorized battles and the debts, the organisation experienced to move its home from 5 Crete Road to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director in the CTMCA, advised them the two buses bought with lottery resources were being saved inside of a top secret location “concealed with the Sheriff”. Though the investigators stated they have been not able to verify that any buses experienced at any time been bought.
Stemmet also verified that the buses were concealed to stop them getting seized. But when the investigators requested for being taken into the spot where by the buses had been stored, he informed them that “the owner of the secret location wasn't accessible to open up the premises for us”.
“The CTMCA could not provide evidence of payment for 2 autos that it allegedly acquired with grant income,” the investigators documented.
Soeker also informed them the Schaapkraal home were bought as a result of financial debt.
“Mr Soeker described that In keeping with his understanding, as a result of debt owed to the City of Cape City, the CTMCA resolved It could be greatest to sell their [Schaapkraal] residence … also to also to cover the belongings from the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for security and safety, has Formerly instructed GroundUp the CTMCA “threw funds away” on litigation with town.
“Each and every year like clockwork, as we tactic the tip of your 12 months, the CTMCA picks a legal fight with town, about permits or another thing. We hardly ever initiate it. They hold throwing revenue absent on vexatious litigation which they shed and possess prices awarded from them. This is certainly fully self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the key part gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of many of the admin, funds and operating ตรวจ the CTMCA.” The investigators explained they were unable to Make contact with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of machines, some in great problem, some in negative issue and many that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where by “devices and several machinery” were being kept.
“We questioned him to consider us to the power but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with rates for this removal.
According to the closing development report submitted into the NLC from the CTMCA, the machinery was purchased from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were administrators at some time.
The investigators discovered this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Observe the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the business is 5 Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the process of getting “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was among the directors.
In keeping with Dabishi Nthambeleni, the organization has compensated R1.two-million for a deposit, this means R6.9-million continues to be owed, even though there isn't a payment date established for when this need to be paid.
The Kopano audit and the near link involving the companies “reveal to us that there's ‘foul Perform’ involved with the purchase on the equipment of the museum workshop”, the investigators claimed within the report.
“We find that it is very possible that CTMCA made use of the funding in the NLC to ‘refund’ one of its primary directors to the residence at an increased overpriced level than the particular selling price and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to the CTMCA were expended.
“Actually, an in depth report on how the funding of your NLC was utilised, will be unattainable as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Every single product it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not done a internet site stop by before approving the grant. But this wasn't regular apply at the time and they identified no evidence of carelessness by NLC workforce.
At some time, the NLC’s rules didn't call for funded organisations to submit evidence of payment with interim studies, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding without the need to give evidence that it had used the main tranche for its intended reason.
Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised that
the NLC decrease any foreseeable future funding programs through the CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected towards the NLC’s “delinquency” method;
the NLC open up a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather than act around the report’s tips, the NLC – below its previous administration – chose to suppress it, mainly because it had done Along with the prior stories into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for e-mail addresses to ship the thoughts by email way too. But no response had been acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph