Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels carry out in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators identified that the CTMCA did not make use of the R5-million allotted to order or produce a museum.
They also identified the CTMCA only acquired land really worth R1.7-million, not R5-million as allotted.
They found the CTMCA utilized funds from the Lottery to get workshop products from one among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape Town Minstrel Carnival Association (CTMCA) by the National Lotteries Commission (NLC) to setup a museum to celebrate town’s rich minstrel background went astray. The museum was under no circumstances produced.
The small print on the abuse of many rands of Lottery money for just a museum that never ever was are unveiled in an investigative report commissioned through the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery resources allocated towards the CTMCA amongst 2003 and 2017.
The primary A part of the investigation, by law company Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which included funding for the museum. The accepted spending budget with the museum was much more than R12.8-million, with R5-million of that allotted for just a developing to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the building for the museum and whether or not the museum “basically existed”.
The business was also instructed to analyze
the acquisition with Lottery money of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “procured to the manufacturing on the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors in the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed extensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted to your CTMCA (see in this article, here and here) and the way in which the funds most likely served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the right was the intended website of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All three tasks were completed, she advised MPs.
However the investigators located no evidence that a museum experienced at any time existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the supposed Wetton museum shows a coffee shop with some musical devices and minstrel costumes and collages of shots haphazardly hung over the partitions, and a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved since they could no more pay for the hire of R100,000 a month. He said the CTMCA had purchased residence for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were bought for the same price tag. Schaapkraal is inside a peri-urban spot significantly from the city.
Due to this fact, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial region, the investigators stated they doubted regardless of whether a proper museum existed there. Pics attached to your report display a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and distribute out on the ground, without clarification.
“There's a small volume of items for the museum [that] by no means characterize the more than a hundred-12 months heritage of your Cape Town Carnival, the investigators claimed, including that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum does not search to generally be open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by shifting the location in the museum to an alternative location with no notifying the NLC.
The Schaapkraal house, on which no museum was ever developed. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver in the rented Crete Street premises because it experienced operate up a R4-million debt with the City of Cape City and was frightened its devices might be attached.
“Because of the authorized battles and the debts, the organisation experienced to maneuver its residence from 5 Crete Highway to avoid the sheriff from attaching the residence in the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them which the two buses bought with lottery funds ended up stored inside of a secret location “concealed within the Sheriff”. Nevertheless the investigators reported they were being not able to confirm that any buses experienced ever been purchased.
Stemmet also confirmed which the buses were concealed to halt them staying seized. But once the investigators questioned being taken for the put where the buses have been saved, he explained to them that “the owner of the secret site wasn't accessible to open up the premises for us”.
“The CTMCA couldn't provide evidence of payment for two autos that it allegedly ordered with grant money,” the investigators noted.
Soeker also advised them the Schaapkraal residence were marketed as a result of personal debt.
“Mr Soeker defined that according to his knowing, mainly because of the personal debt owed to the town of Cape City, the CTMCA made the decision It might be very best to sell their [Schaapkraal] residence … and to also to cover the assets of your CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for security and stability, has Formerly informed GroundUp that the CTMCA “threw dollars absent” on litigation with town.
“Each and every year like clockwork, as we solution the top from the year, the CTMCA picks a authorized combat with the town, in excess of permits or something else. We under no circumstances initiate it. They retain throwing income away on vexatious litigation that they lose and also have fees awarded against them. That is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the key part gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for all of the admin, funds and functioning ผล หวย the CTMCA.” The investigators said they had been unable to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “observed a lot of devices, some in excellent situation, some in bad condition and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web-site storage facility the place “devices and several equipment” had been retained.
“We asked him to acquire us to the facility but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be tools which was illegally faraway from the CTMCA’s past premises. Stemmet is facing expenses for this elimination.
In accordance with the closing development report submitted on the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being administrators at the time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the organization is 5 Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be built and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the directors.
In accordance with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, which means R6.nine-million continues to be owed, nevertheless there is not any payment date established for when this should be compensated.
The Kopano audit and also the near link amongst the businesses “show to us that there's ‘foul Participate in’ involved in the purchase with the equipment of your museum workshop”, the investigators stated inside the report.
“We find that it is very probable that CTMCA employed the funding on the NLC to ‘refund’ amongst its main administrators with the assets at an increased overpriced level than the particular selling price and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA were put in.
“In fact, an in depth report on how the funding in the NLC was made use of, can be not possible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities used on Each and every product it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified which the NLC experienced not performed a web-site go to ahead of approving the grant. But this was not typical practice at the time they usually observed no proof of carelessness by NLC personnel.
At enough time, the NLC’s procedures didn't involve funded organisations to submit proof of payment with interim reviews, they identified. This meant which the CTMCA was ready to get a second tranche of funding without having to offer evidence that it had employed the initial tranche for its supposed goal.
Following the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding applications in the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to your NLC’s “delinquency” system;
the NLC open a felony circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act within the report’s recommendations, the NLC – less than its preceding administration – chose to suppress it, as it experienced finished with the preceding reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for electronic mail addresses to send the inquiries by e mail too. But no response had been obtained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph