Leaked report exposes abuse of lottery dollars paid out to minstrel group
Leaked report exposes abuse of lottery dollars paid out to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also discovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized resources through the Lottery to buy workshop equipment from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to build a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was never developed.
The small print on the abuse of a lot of rands of Lottery cash for your museum that hardly ever was are uncovered in an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of much more than R64-million in Lottery cash allotted for the CTMCA in between 2003 and 2017.
The initial Element of the investigation, by regulation business Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which involved funding with the museum. The authorised budget with the museum was much more than R12.eight-million, with R5-million of that allotted for just a constructing to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building with the museum and if the museum “really existed”.
The organization was also instructed to research
the acquisition with Lottery funds of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous machines “purchased for your production with the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several administrators of your organisation. Stemmet was reappointed as a director in May perhaps 2021.
The investigation followed considerable reporting by GroundUp with regard to the numerous rands of Lottery funding allocated on the CTMCA (see below, in this article and here) and the way the funds almost certainly assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.
The setting up on the appropriate was the intended web site of the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “initiatives” - including the museum - among 2012 and 2015. All a few projects had been concluded, she told MPs.
Even so the investigators found no proof that a museum experienced at any time existed.
Initially the museum was on account of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of pics haphazardly hung about the walls, and a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved simply because they could now not pay for the lease of R100,000 per month. He stated the CTMCA had procured home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is within a peri-urban location significantly from the town.
Due to this fact, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after viewing the premises, which happen to be within an industrial region, the investigators said they doubted whether or not an appropriate museum existed there. Photographs hooked up on the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and spread out on the floor, without rationalization.
“There's a small amount of things with the museum [that] on no account represent the greater than 100-yr background with the Cape City Carnival, the investigators explained, including that there was “no signage outdoors the premises indicating which they housed a museum and … frequently, the museum won't seem for being open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by transferring the location with the museum to an alternative site without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA had to maneuver within the rented Crete Road premises mainly because it had run up a R4-million credit card debt with town of Cape City and was frightened its tools can be connected.
“Due to lawful battles plus the debts, the organisation had to move its property from 5 Crete Highway to avoid the sheriff from attaching the home from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director from the CTMCA, explained to them that the two buses bought with lottery funds had been stored in a very solution area “concealed from the Sheriff”. But the investigators explained they were unable to substantiate that any buses experienced ever been bought.
Stemmet also verified that the buses were hidden to prevent them staying seized. But in the event the investigators questioned to get taken to the area in which the buses were stored, he informed them that “the owner of The key location wasn't accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for 2 vehicles that it allegedly procured with grant income,” the investigators noted.
Soeker also instructed them the Schaapkraal assets had been bought due to financial debt.
“Mr Soeker discussed that As outlined by his knowing, mainly because of the personal debt owed to town of Cape Town, the CTMCA made a decision it would be best to sell their [Schaapkraal] property … and also to also to cover the assets from the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has Beforehand explained to GroundUp the CTMCA “threw funds away” on litigation with the town.
“Each and every year like clockwork, as we strategy the top in the calendar year, the CTMCA picks a lawful struggle with the City, above permits or something else. We in no way initiate it. They hold throwing dollars absent on vexatious litigation they shed and possess expenditures awarded towards them. This is often entirely self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for all of the admin, finances and operating หวย วัน นี้ the CTMCA.” The investigators mentioned they had been not able to contact Momberg.
Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few devices, some in fantastic situation, some in undesirable problem and a few that looked rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “instruments and a few equipment” ended up held.
“We questioned him to get us to the power but he was evasive to our request.”
Based on pictures and invoices in GroundUp’s possession, some, Otherwise all, on the items look like gear that was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this removing.
Based on the remaining progress report submitted on the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up directors at time.
The investigators uncovered this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Highway, Wetton, Cape Town, the exact same address on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the whole process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.
In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, that means R6.9-million is still owed, while there is not any payment date established for when this have to be paid.
The Kopano audit and the near backlink concerning the companies “indicate to us that there is ‘foul Participate in’ involved with the acquisition from the machinery with the museum workshop”, the investigators said while in the report.
“We discover that it's really probable that CTMCA utilised the funding of the NLC to ‘refund’ among its major directors for your home at a higher overpriced price than the particular price and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been used.
“In point of fact, an in depth report on how the funding from the NLC was utilized, could well be difficult because the CTMCA doesn't have any receipts, or proof of payments to verify the quantities used on Just about every product it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not conducted a web site check out in advance of approving the grant. But this wasn't normal apply at some time plus they located no evidence of carelessness by NLC staff members.
At time, the NLC’s principles didn't call for funded organisations to submit proof of payment with interim experiences, they pointed out. This intended which the CTMCA was in the position to receive a second tranche of funding without the need to supply evidence that it experienced used the primary tranche for its supposed purpose.
Adhering to the appointment of a completely new board, commissioner and senior executive team, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni recommended that
the NLC drop any future funding purposes within the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s suggestions, the NLC – less than its prior administration – selected to suppress it, mainly because it experienced completed with the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to mail the queries by e-mail also. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph